Since the dawn of time there have been people trying to scam you out of your money. No matter the form, be it fiat, crypto, or barttering cattle, bad people always find ways to seperate you from your hard earned money. I wanted to write this post in an attempt to help even one person not get scammed out of their crypto.
I am going to list a few common scams in the banking world, the cryptoverse, and relate them to give some tips on how to avoid being scammed in the future. Hopefully this helps!
Phishing – “the fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers.”
Phishing is definitely the most common scam going around in banking AND crypto. As the definition states, these people will try to contact you as a member of a trusted institution in order to get your private information. In banking, they will attempt to get your account numbers, card numbers, or online banking information through “verification” or linking your account to their system.
In crypto, this involves your seed phrases, passwords and pins for wallets and exchanges, or private addresses. People will try to “verify” your wallet by asking you to enter in your seed phrase, or see a post on r/cc and reach out from “support”
The best defense for phishing is to NEVER click any links you get from an unexpected message or email. The best practice is always to go through your trusted portals for these exchanges and banks and reach out via phone numbers and emails listed on their official sites.
Craigslist Scam/Mover Scam/Investment Scam
This scam varies a little, so there isn’t an official name, at least that I can think of right now. The whole purpose of this scam is to have you send money to them after they have sent you money as an accidental overpayment. In banking, this looks like someone buying something from you off of Craigslist for more than you are asking, and wanted to send you some of the money back. Usually, the money they send you is fake, or written from a bad check, so after you send them the money, the check bounced back out of your account or gets charged back.
In crypto, this looks like a giveaway, where if you contribute x amount of y token, you will be given double back. Or if someone is messaging you about an investment strategy that 4x your money in a week. These are always scams.
The best way to prevent this is to remember that, if it sounds to good to be true, it is. No one will reach out to you and offer to help out of the kindness of their heart. Yes, we do have SOME good apples, but 9 times out of 10, the good apples mind their own business.
This is a little longer than I anticipated so I’m going to go ahead and post this. If people are interested, I’ll make another post with some more common scams and share my experience with them.
tldr: notice red flags, don’t trust any links, if it’s too good to be true, it is.