The popularity of cryptocurrency across the world, India included, is undeniable. With several investors raking in unimaginable profits every day, more people are jumping on the cryptocurrency bandwagon for various reasons. For starters, it gives users autonomy over assets and transactions. However, in the absence of an authority to govern the functioning of cryptocurrency channels, users can also fall prey to fraudsters and become subjects of scams. With time the growing popularity and upward trajectory of the value of cryptocurrencies such as Bitcoin, Ethereum and Dogecoin, has resulted in customers being faced with an increased risk of fraud.
Here’s how you can identify and tackle some of the most common types of crypto frauds
- If the offer is too good to be true, it is always a good idea to check multiple times before you commit. If a deal promises you ten times the returns with no real explanation in sight, chances are you are buying into a scam. So, skip the deal and keep yourself from falling prey to fraud.
- Fake mobile apps that closely resemble legitimate cryptocurrency apps are also prevalent on the Internet. Always look for ratings, customer reviews and as well the authenticity of logos to weed out the fake apps from the real ones.
- Always double-check the websites and their URLs. Spoofing, which is one of the most common technological attacks, is prevalent even in the world of cryptocurrency. Make sure that you are engaging and making transactions only on recognised and approved platforms. Even if you are following a link from a credible source or crypto expert, keep tabs on whether you are being redirected to a site that you did not intend to visit.
- Another popular way that fraudsters trick users is by sending phishing e-mails that masquerade as official communique from a credible cryptocurrency site or exchange. Such emails often offer lucrative offers and deals to entrap users.
- Masquerading as tech support is another manner in which fraudsters cheat users. Always ensure that you double-check the phone number, social media handle or email-id that is being used to contact you — or you are contacting — for tech support and troubleshooting.