Crypto currency scams in social media; 6 possible scams that can happen to you!

Crypto currency scams

The business of virtual money is increasing on a high scale these days. People are attracted to virtual money (like bitcoins) after realizing the escalation of their market value. Approximately 1 bitcoin is equal to 53,756.90 US dollars. Cyber hacker these days are demanding bitcoins as ransom rather than real money because they are much more profitable. Their value always goes up day by day.

Nowadays the security researchers have identified bitcoin purchase scams spreading in social media. People are falling for this trap and buying them by paying huge amounts. For them it is a kind of long term investment. If they sell their bitcoins after 5 or 6 years they earn the double amount which they have spent now.

But little do they know that, not every ads you see in social media are legitimate.

Crypto currency scams

Due to the abstract nature of Crypto currency, fraudsters can easily use them as a source of fraud. Scammers often trick the users through legalized looking ads and schemes.

As per the records, around 4 billion dollars were lost from people who were trapped in crypto currency scams.

Threat actors with immense technical knowledge use methods like social engineering to execute the hack. They send phishing messages through social media platforms. These links often lead to fake webpages which includes the purchase of legitimate looking fake crypto currencies.

Let’s take a look at some of the scams

Initial Coin Offering

Initial Coin Offering (ICO) is a fundraising method which is done between organizations and stakeholders. They usually include a small legalized contract which allows automated transactions between them. ICO is a business strategy usually used by the Crypto currency companies to invest money from the future buyers. Often, the ICO method is used as a tool to perform malicious hacks.

According to a survey conducted in 2018 by the cyber security researchers, 80% of ICOs were found to be scams.

There are a lot of ICO entrepreneurs coming up with a good business history. But most of them turn into technical criminals when the deal is done.

The main reason for the increase of ICO scams are that majority of the coin offerings are carried out online and is no face to face interaction between the two business groups.

Bitcoin mining scams

This is a process which utilises computer sources to safely transfer bitcoins by adding it to the block chain ledger. The transaction is easily carried out between two devices. Dealing with bitcoin mining operations require a good technical knowledge and the hardwares used for the process cannot be handled by an average person.

Hackers usually use the bitcoin mining techniques to loot crypto currencies.

A genuine broker requests the buyers to invest in the business which will be profitable to them in the coming years. But if they are scammers, they would suddenly disappear once we send them the money for investment.

Additionally, there are scammers who compel you to invite some of your friends into the investing pool by offering great advantages.

Give away ads in social media

In these cases, the scammers often impersonate any celebrity or socially influenced person to spread fake ads and messages. Here they use a type of social engineering which involves compelling the user to send crypto currencies in return for a large amount of tokens.

These scams are widely spread across different platforms of social media. They promote these giveaways by including photos and videos which helps to gain the trust of the users. Many fall into their traps thinking it to be a genuine one, since the photos and videos had promising participants like celebrities.

Fake websites

Often fake websites of Crypto currency exchanges are hosted with legitimate looking URLs. Here the scammers include fake wallets and genuine looking exchanges. Once a user updates their wallet details in the website, the scammers use this information to gain access to your personal account.

There are chances of malware infections in these websites. Once the website is opened, this malware take control of your system compromising your sensitive data.

Yield Farming Incentives

Yield farming is method that allows the user to earn profitable returns from compromising crypto currencies. Yield farming is built on top of the base of Ethereum Block chain lending process. This technique usually gains us interest.

Yield farming runs on the basis of a code developed by technical experts of the decentralized finance ecosystem. The scammers just copy paste the code from the current running projects and injects their malicious code to hijack the funds.

Email based scams

In today’s society, online cyber security is just a mirage. Scammers are becoming technically strong day by day. Data privacy has become weak such that hackers can easily steal your personal information and use it for their purpose or sell them in dark web.

Email scams are very dangerous. They tag a link or attachment with the mail and send it to different people. Once they open the link or attachment, the browser guides them to a malicious web page where you sensitive data will be compromised without your knowledge.

Mitigate crypto currency scams

  • Never allow the access of your personal data to anyone other than trusted people.
  • Never leak your two factor authentication code. Legitimate coin base staff will never ask you to share your personal OTP.
  • Never fall for phone call traps. Avoid giving your private informations through phones.
  • Avoid sending crypto currencies to strangers or unknown addresses.
  • Always check the authenticity of websites.
  • Secure your liquid login ID and security passwords.

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