Cryptocurrency is generally immune to the whims of national governments and central banks. It’s one of the reasons why virtual currencies are so popular. Their key strengths are the anonymity it provides users and the fact that it is politically decentralized.
However, these features also increase their appeal to criminals. In certain countries, the legal status of crypto is unclear. This indicates that crypto theft prevention is not a high priority for local authorities.
“But there are ways to prevent the theft from happening,” says the Coin Dispute Network, a company dedicated to helping victims of crypto scams. The key is to know the top ways scammers can steal crypto.
WAYS CRYPTO CAN BE STOLEN
Ponzi schemes
Cryptocurrency is often at the center of Ponzi schemes. Many investment scams begin on dating sites or social media with the promise of “making tons of money” with “zero risk.”
Fabrications like these often begin with a phone call, email, or text message entirely out of the blue. Many people fall for this trick because we all want free money, says the representative of Coin Dispute Network.
Physical Hacking
A more advanced threat, such as a physical hack of the device, may arise if your device gets into the wrong hands. Without proper defenses, hardware wallets are susceptible to attacks from skilled cybercriminals, such as power glitches and software hacks targeting a phone’s Hardware Security Module.
When it comes to keeping your private information safe, you can trust Ledger’s hardware wallets since they offer the highest level of security possible against online and offline threats.
Investment Scams
According to the Coin Dispute Network, con artists will construct a website that seems similar to a reputable online trading platform. This company could be a fake of an existing one or wholly made up. They might even use false celebrity endorsements in adverts posted on social media.
Sophisticated fraud operations will involve teams of con artists contacting and calling potential victims to establish trust. Victims may be able to “trade” on the fraudulent platform after making deposits. Still, they will be unable to withdraw any funds they supposedly make. Demanding more deposits to cover looming fees or taxes is a typical delay strategy.
Private Keys Theft
Some people use digital storage methods, such as cloud-based file servers or cryptocurrency markets, to keep their private keys safe and secure. This makes them more susceptible to theft and hacking.
Once the private keys have been stolen, their coins can be accessed and transferred. Consequently, legitimate owners will have their assets stolen by cybercriminals. A lot of victims have lost their crypto to various scams, and luckily, the experts at Coin Dispute network help scam victims recover their funds.
Attacks on Legitimate Trading Platforms
Every year, thousands of new users flock to cryptocurrency exchanges. Additionally, many keep millions of monies in these systems. This makes them an easier target for hackers. The Bitcoin wallets of reputable cryptocurrency exchanges are vulnerable to hacking. But the good thing is that there are also many ways to track down crypto scammers.
For convenience, many Bitcoin traders keep their holdings on cryptocurrency exchanges. Unfortunately, even if customers use a legitimate cryptocurrency exchange, hackers can still attack that exchange and make off with the consumer’s funds.
