Cryptocurrency has always been a risky investment. Even though Bitcoin skyrocketed and made some investors millionaires, it’s difficult to predict when or why the crypto market will slide. Not only that, but the FBI warns that hackers have been targeting crypto platforms. Tap or click here for our report.
Things were made worse recently when cryptocurrency exchange FTX went bankrupt, and its founder was arrested and charged with several counts of fraud. Now, scammers are trying to cash in on the terrible crypto news.
Keep reading to learn how thieves target victims with tricky crypto scams and a few ways to protect your money.
Here’s the backstory
Most people knew that FTX’s bankruptcy would cause many headaches for thousands of cryptocurrency traders. Not only did some lose their life savings in the blink of an eye, but there is little they can do to get it back.
And that’s where the scammers are stepping in. Through text messages, emails and phone calls (robocalls), crooks are claiming to represent cryptocurrency companies and offer their help in getting your money back.
Even if you haven’t lost money in crypto, the thieves will attempt to offer advice on how to invest wisely and make money. But don’t buy it. It’s all part of an elaborate scheme to rip you off.
According to a company that helps identify scam calls, Truecaller, crypto scams are spreading quickly. Scammers attempt to get as much personal information from targets as possible, ultimately leading to accessing a victim’s crypto wallet or bank account.
In essence, these schemes are like other phishing scams. The thieves attempt to build trust at the beginning of the call before launching their plot to steal your sensitive information. They might even prep for the call by scouring the internet for personally identifying information (PII) about you, so it seems they are legit.
In reality, they are just on a phishing expedition hoping to trick you into handing over personal and banking details.
What you can do about it
The criminals have a single goal: to steal your money. No matter what they tell you, they don’t want to help you get your crypto back or recoup your losses.
Whether contacted through email, text or phone call, there are several ways to protect your finances. Here are some suggestions:
- Don’t answer calls from unknown numbers. If you answer such a call, hang up immediately.
- You should hang up if you answer the phone and the caller or recording asks you to hit a button to stop getting the calls. Scammers often use this trick to identify potential targets.
- Do not respond to quick yes or no questions when speaking to an unknown caller. Fraudsters can record your voice and if you say the word yes, use it to authorize costly charges.
- Never give out personal information such as account numbers, Social Security numbers, mother’s maiden names, passwords or other identifying information in response to unsolicited calls.
- If you get a call from someone who says they represent a cryptocurrency company, hang up.
- Use caution if you are being pressured for information immediately. Don’t panic. Just hang up.
- Use two-factor authentication (2FA) for better security whenever available. Tap or click here for details on 2FA.
- Don’t click on links or attachments you receive in unsolicited emails or text messages. They could be malicious, infect your device with malware and/or steal sensitive information.
- Protect all of your online accounts with unique and hard-to-crack passwords. Tap or click here for an easy way to follow this step with password managers.
- Always have a trusted antivirus program updated and running on all your devices. We recommend our sponsor, TotalAV. Right now, get an annual plan with TotalAV for only $19 at ProtectWithKim.com. That’s over 85% off the regular price!
Traveling this year? Don’t get fooled by these cancellation scams
Crypto scam red flags: No, Elon Musk isn’t trying to help you make money in crypto