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Is your crypto wallet safe?

There’s been a lot of cryptocurrency scams that recently jeopardized crypto investments. Because of the swift increase in the number of cases where people lose their cryptos due to scammers, potential investors often refrain from putting money into blockchain-based businesses.

Columnist Anna Kranj | Nordic IT Security, May 25, 2021

Featured, Cyber Security, News

Cryptocurrency is for sure the hottest topic when it comes to the technology world and everything related to IT at the moment. If you know where to get it, how to use it and how to store it, it can get you huge returns. Bitcoin, Dogecoin and Ethereum are among the most popular currencies, with each Bitcoin valued $50,000 on average.

Losses from cryptocurrency scams plummeted over the past few months, according to a report released by the US Federal Trade Commission. Cryptos like Bitcoin, Ethereum and Dogecoin note a daily change in value, which sometimes causes a market crash and rise in crypto investments. These investments hold a number of risks, the biggest one being cryptocurrency frauds.

In its Consumer Protection Data Spotlight newsletter, the FTC revealed that during the October to March period nearly 7,000 consumers reported losing US$80 million. That’s more than a 1,100 percent rise in cryptocurrency scam reports during the period — and more than a 900 percent increase in losses.

Cryptocurrency investment scams can take many forms, with the FTC highlighting scammers using:

  • fake investment websites,
  • romance scams where victims are persuaded to invest in cryptocurrency,
  • impersonating a government authority (e.g., Social Security Administration) or legitimate businesses (e.g., Coinbase)
  • and even impersonating celebrities who promise to multiply the potential victims’ gains in giveaway scams.

Recently, there’s been some investigation when it comes to cryptocurrency scams in which a British security software and hardware company Sophos came across a server that impersonated major banking, trading and cryptocurrency apps, such as Barclays, Kraken, Binance, TDBank and many more. Downloading these imposturous apps allows scammers to block the victim’s account and transfer everything further, without the possibility of a recovery.

In conclusion, how do you save yourself from any type of cryptocurrency scams if you plan to invest? Do not trust anyone online no matter how genuine they appear to be. Also, download apps only from Google Play store or Apple’s app store and avoid malicious links that ask you to download anything from a given link.

So, if you plan to invest in any cryptocurrency, make sure you take in consideration all the risks that come along with the investment, since the scammers are also following all the novelties regarding the crypto market.

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