Security and Fraud Prevention

Security and Fraud Prevention

Cryptocurrencies are very interesting and exciting, but also come with serious risks. You can reduce these risks if you put in a small amount of work upfront.

Security and Fraud Prevention

With the continuous development of encrypted digital assets, fraudsters are also gradually active. They continue to set up new types of scams to mislead users who do not fully understand digital assets, and many people's asset security is threatened. Therefore, it is very necessary to understand how fraudsters commit fraud and the corresponding countermeasures in advance to ensure account security.

Common Scams

Phishing SMS

When users use some trading platforms, they will leave their contact information and identity information on them. Once the information on these trading platforms is leaked (especially some small trading platforms), fraudsters will go to mainstream platforms based on this information. Search in the database of the SMS service provider to obtain more information, such as contract status or currency withdrawal status. After the user receives the phishing text message, if the user credulously believes the content of these text messages or clicks on the link in the text message, he will fall into the trap of fraudsters.

Fake celebrity endorsement

Scammers steal celebrity social media accounts or create fake accounts and encourage followers to invest in fake schemes they post. There have been cases where scammers have made around $2 million out of this scam, and they even put Elon Musk’s name in the bitcoin address to make the scam more trustworthy.

Imposter App

Cybercriminals disguise malicious programs and upload them to app stores. If you install one, it could steal personal, financial details, or plant malware on your device. They could trick users into paying for services that don't exist, or try to steal your cryptocurrency wallet logins.

The password was cracked by hackers

Many users with bad habits usually set a unified password, and use the unified password to log in to multiple different trading platforms and wallet software. When passwords are compromised, hackers can gain access to all of a user's accounts with just one password.

Leaked private key

If the private key is leaked, it means that the wallet already belongs to someone else, and all assets in the wallet will be transferred, which is the most dangerous, none of them. There are usually the following fraudulent methods that cause users to disclose their private keys:

• Pretending to be customer service of the exchange. Tell you that the exchange account is frozen, and you need to complete the relevant operations according to the customer service instructions to unfreeze.

• Fake wallet. Fraudsters use fake wallets. When you import keys to use the wallet, or use its fake wallet to deposit digital assets, they will monitor your balance, and once they meet their standards, they will transfer your digital assets to in his personal account.

• Cell phones are monitored. For example, when copying and pasting, some mobile phone software can actually monitor what you copy. Especially for the input method, it is strongly recommended that you close the network access permission of the input method. This kind of theft is hard to prevent, so don't copy and paste your private key easily.

How to Avoid Falling for a Scam

View information through official channels

For phishing text messages, the best solution is nothing more than carefully paying attention to text messages or answering calls, and be vigilant against so-called "official" or "staff", especially some unfamiliar calls. Promptly verify sources of information. Improve self-security awareness, do not easily click or scan any links and QR codes pushed by unofficial channels, protect the safety of personal property, and be extremely vigilant for any operations involving account login, transfer/transfer, cash withdrawal, etc. .

Set a password with a high level of security

When using trading websites or wallet software, set some complex passwords to ensure that they will not be easily cracked by hackers. When setting a password, do not use commonly used keywords such as your own or your family's birthday, ID number, etc., and try to use some irregular combinations of uppercase and lowercase letters, numbers and symbols.

Do not disclose your private key information to anyone

Once the private key information is obtained by others, it is equivalent to losing the absolute control of the account. Therefore, neither the trading platform nor anyone can ask for the user's private key information. Only by protecting the personal private key can the security of personal digital assets be truly guaranteed.

Do not use unofficial app stores

Obtain applications through official channels, which can effectively prevent fraudsters from eavesdropping on mobile phone information through some illegal programs.