What Are the Main Crypto Scams and How Can You Avoid Them?
Unfortunately, the crypto world has its fair share of bad actors. From fake exchanges to money transfer fraud and pump and dumps, there are plenty of ways for criminals to compromise the safety of your crypto and sadly more than enough scammers are looking for an opening so they can steal your hard earned digital cash. In this article we are going to review a few of the main crypto attack types including SIM swapping, bitcoin phishing and malware as well as the best ways to protect your crypto account from each one.
SIM Swapping
SIM swapping, also known as SIM jacking, is a type of account take over, where the attacker transfers the victim’s phone number to their own SIM card. The hacker is then able to reset passwords to access protected data. In doing so, they are able to get their hands on a crypto holders accounts and wipe them out.
How can you protect yourself?
This crypto attack type relies on the hacker scamming the phone carrier’s tech support. To shield your crypto account against SIM swapping, before you do anything else, you must implement 2-factor authentication with an authenticator app. This means that when you log in to your account, you will be required to confirm your authority with two separate means of identification. We would suggest that for the first, you use email and then for the second, use Google authenticator, which can be installed on your computer or your phone, protecting your digital currency against an account breach via SIM swap.
You can also create an extra layer of security by adding a passcode or PIN to your phone account, separate from the password you use to log in. This passcode will be required before any significant changes can be made to the account, such as switching the phone number to a different SIM. Simply contact your mobile phone provider and they will provide you with instructions on how to implement this safety feature.
Bitcoin Phishing
Bitcoin phishing is one of the most common crypto attack types. A bitcoin phishing email will be a fake message that appears to be from your wallet or other crypto service, asking you to perform an action relating to your account, such as resetting your password. These can be hard to distinguish from real communication from your service provider so you need to be very vigilant. These types of emails can also click through to replica websites that are designed to steal your account login credentials or alternatively, to prompt you to download malware. Bitcoin phishing websites can also appear in app marketplaces or seem to be legitimate sponsored search engine results.
How can you protect yourself?
To shield your crypto account against bitcoin phishing emails, you need to always verify the email address of the sender and cross-check it against the email address shown on the service provider’s website. If you are unsure, you should always take the time to call the support representatives on the phone or reach out to them via the company’s official social media sites to verify that they sent the communication, with the data request.
With regard to websites, double-check the site address with other online references for the company to be sure the website isn’t fake before you click on a sponsored link, log in or install any software onto your personal device.
Malware Attacks
One of the most frequent crypto attack types is a malware program and hackers are getting better by the minute at finding new ways to exploit vulnerabilities in the most secure systems. A malware attack, such as spyware or ransomware, involves the installation of malicious software on a device without the owner’s knowledge, with the aim of blocking access until a ransom is paid, or accessing personal information for financial gain.
A common form of breach is a crypto attack algorithm that once installed can automatically change the bitcoin address when pasted from your clipboard. As a result, all the digital currency being transferred goes to the hackers bitcoin address. Since blockchain network transactions cannot be reversed, by this point, recovering your stolen crypto is close to impossible.
How can you protect yourself?
To safeguard your crypto account against malware attacks make sure you are 100% certain of the bitcoin address to which you are sending your funds. Be incredibly cautious about the programs you allow to have administrator access to your devices and make sure you have a virus scanner that is robust and up-to-date.
The Ultimate Crypto Defense
Choosing the right crypto service provider is critical when it comes to keeping your digital currency safe. So, you should only select a wallet or crypto trading account that has implemented the strictest possible security protocols. You only need to do a ten second google search for the term ‘crypto hacks’ to find a depressingly long laundry list of recent security breaches in Decentralized Finance (DeFi) applications, which have collectively lost billions to hackers exploiting holes in smart contract technology since the year began. To protect your savings, find a company without a bitcoin attack history and with a comprehensive defense strategy combining traditional and digital security measures. Doing your homework is the smart move before you consider placing your crypto capital in any hands but your own.
At ArbiSmart, our crypto arbitrage automated trading platform and interest-bearing wallet are fully EU licensed and regulated. This means that your crypto is protected in a variety of ways. Not only is the company externally audited, but it also implements Anti-money Laundering (AML) and Know Your Client (KYC) protocols designed specifically to protect against fraud and ensure account integrity. Regulatory requirements also guarantee that we maintain the highest data security standards to shield against hacks. Moreover, if a breach were ever to succeed, our client insurance fund covers all accounts, protecting you from losing your savings. The human element is also essential when your crypto is being stored on a fully automated system. For this reason, ArbiSmart has a risk management team that is on the clock 24/7 to oversee operations.
We have also implemented a number of additional safeguards to protect against various crypto attack types. For example, even if your user credentials are discovered, your funds can only ever be withdrawn to your personal bank account and not to anyone else’s account.
Then of course if we do encounter suspicious activity with regard to your account, we will contact you directly in order to make sure that no criminal activity has occurred. We may even request a selfie to ensure your identity has not been stolen in the case of particularly unusual account behavior.
Without a doubt there are countless ways in which your crypto account can be breached by bad actors, but that shouldn’t deter you from entering the exciting, dynamic and highly lucrative digital currency markets. The crypto arena offers exceptional opportunities to diversify your portfolio and earn generous returns. With strategies such as crypto arbitrage you can make high interest at minimal risk. So, choose a secure crypto service provider that has regulatory oversight and a solid online reputation and dive in!