The crypto currency market meltdown is a perfect storm of scams and bad actors. The most recent problems are causing many people to lose money and also bringing more cybersecurity risks than ever before.
Reputation Cybersecurity and Crypto Currency Mark Meltdowns
In the wake of the most recent cryptocurrency market meltdowns, we have observed a significant increase in cyberattacks. The cryptocurrency world has become a hostile environment for investors and traders alike. Recent security breaches have been especially damaging because they have involved large amounts of money and resulted in major losses for both businesses and consumers. In addition to these actual losses, there were also significant reputational costs associated with these attacks due to their effect on public perceptions about cryptocurrencies.
The relationship between cybersecurity issues and crypto currency market meltdowns is clear: as more money enters the market, so too does more hacking capability; as investments go up, so do cyber threats from within and without (e.g., government agencies). One way to protect yourself from these threats is by investing wisely in your personal cybersecurity measures—and making sure that you don’t get caught up in any hype surrounding crypto currency instead of focusing on what matters most: protecting yourself against cyber threats.
With over 6000 types of cryptocurrencies currently available, investors have a wide range of options to choose from. But when it comes to picking the right crypto coin for you, there are two things that are absolutely essential: security and value. Most do not have either.
The fact is, cryptocurrency markets are still relatively new. And while they can certainly boost your portfolio, they’re also a bit of a wild west—and one that hasn’t yet been tamed by the government or any other central authority. That means it’s easy for cybercriminals to target unsuspecting investors with phishing schemes and other scams designed to steal your money. The good news is that there are steps you can take to protect yourself (and your assets) from these threats—and we’re going to tell you exactly how!
How can I tell if a crypto exchange is legit? FTX was supposed to be safe.
- Check the exchange’s website.
- Check the exchange’s social media accounts.
- Check the exchange’s reviews and ratings.
- Check to see where it is located (not all coins can be bought online).
Unfortunately, in the case of FTX and FTT, most of these would have shown a good company with good reputation. It would have been hard, but not impossible for outsiders to see what was happening. But for the average investor on FTX or any of their owned entities, it was like being involved with Bernie Madoff. They just had no idea of the depth of the problems, if at all.
Common Scams in the Crypto Markets
The crypto markets are notorious for attracting scammers. With the boom in the cryptocurrency industry, there has been an increase in fraudulent schemes that take advantage of investors looking to get rich quick. Crypto Currency Market Melt Downs are to be expected, just not on such a massive scale as the world has seen recently.
Crypto currency scams can come in many forms. They can be fake exchanges, fake wallets or fake companies that claim to be using blockchain technology but actually don’t exist. There are also fake news stories about crypto currencies being reported as real news reports on legitimate-looking websites with similar titles and brand designs as real websites (e.g., a crypto currency website called “CoinMarketCap” that looks exactly like the real one).
There are also scam mining companies selling equipment for mining cryptocurrencies but actually don’t have any equipment nor do they mine any coins themselves; instead they simply take away your money after you’ve purchased their products or services with promises of great results if you work hard enough at it. Some scammers even go so far as to create entire communities around certain cryptocurrencies just so they can lure investors into buying into something that doesn’t exist!
Crypto currency scams are everywhere, which is why it’s important to do your research before investing with any company or individual. Scammers will always find ways to trick investors into parting with their money, so be sure that you know what you’re getting into before sending anyone money or assets of any kind.
Fake exchanges/wallets and rug pulls and other ways to steal from people.
- Scams targeting the elderly.
- Scams targeting college students.
- Scams targeting low income people.
- Fake crypto exchanges, wallets, companies and trading platforms are using social media to push their scams to investors who don’t understand the pitfalls of new technology or those looking for a way to get rich quick in a booming market without understanding how it works or how it can go wrong (see: “Rug pulls”).
Fake ICOs are also targeting investors who don’t understand how to spot a good investment. This is a big problem, because it’s not just investors who are being taken advantage of. Cryptocurrency companies that exist only as websites and social media accounts are being advertised on Facebook and other platforms as real businesses with real products or services. In some cases, these companies don’t even exist at all but were created by scammers to steal from investors.
Using phishing techniques to sell and get money into fake exchanges.
Using phishing techniques to sell and get money into fake exchanges.
Phishing is a way to get people to give you their information, or sometimes their money. This can be done through phone calls or emails, but it’s most commonly done through phishing websites that look like legitimate cryptocurrency exchanges. The idea behind this is that if you’re running an exchange and want people to deposit funds with your service, you need them first believe that it’s safe for them do so—and no one knows better than hackers how to convince someone through deception and trickery. By using phishing sites and fake domain names, hackers are able to create convincing sites which capture user credentials such as usernames and passwords when users think they’re logging in on the real thing (which may have been compromised by malware). This allows hackers access into accounts which contain valuable information about where users’ crypto funds are stored without any notice from those affected until after the damage has been done.
Phishing is often done by sending emails to users claiming that they must change their password or perform some other action. These emails can be sent directly from the real exchange website, or they may appear to come from someone within a company—in either case, people should always check the sender information before clicking on any links or attachments.
Fake crypto companies and getting people to pay for crypto that doesn’t exist or is all hype.
In the crypto market, there are a lot of scams and fake companies. There are also a lot of companies out there that are legit, but they have no idea what they’re doing and aren’t working in your best interest.
It is important to know what red flags to look for when investing in crypto. Here are some common scams:
- Fake exchanges/wallets and rug pulls
- Selling bogus coins as legitimate ones (pump & dump)
- Phishing techniques used to sell and get money into fake exchanges
Targeting specific groups with the same scam (i.e. targeting the elderly, low-income, college students etc. with easy money opportunities).
- Targeting specific groups with the same scam (i.e. targeting the elderly, low-income, college students etc. with easy money opportunities).
- Low-income people tend to be less tech savvy than others, and so are more susceptible to scams. It’s also easier for scammers as they can target a large number of people at once by sending spam messages via emails or on social media platforms like Facebook or Instagram etc., that target a particular group such as college students or elderly people who may be more likely to fall for such scams due to their age or financial status
Scammers often use the same scams over and over again, targeting different groups with specific types of scams. For example, they might send out a message offering people easy jobs as an online survey taker or data entry clerk. This job will involve filling out surveys for companies who need information about their customers so that they can better market their products.
The crypto currency market melt down brings more cybersecurity problems than ever before.
Here are a few tips to help you determine if an exchange or wallet is legitimate:
- Check out the reviews of the company online and make sure it has a good reputation, like being reliable and trustworthy.
- Look at how long the company has been in business, as well as what their security measures are for protecting users’ information and overall safety when using their services.
- Read any reviews from customers who have used this crypto currency exchange or crypto currency wallet before so you know what others think about them before deciding if it’s right for your needs (or not).
- *Take the above with a grain of salt, and talk to experts, lawyers, accountants who might be able to help you discern if something is real or fake*
-Look for the company’s physical address and contact information. -Find out if there are any restrictions on where you can use this exchange or wallet (such as countries where it isn’t legal).
The crypto currency market has been a wild ride for investors, but it has also brought new challenges to cybersecurity. As more people are investing in this new form of currency, there is an increased need for protection against phishing scams and other types of fraud. Even if you aren’t interested in getting involved with cryptocurrency trading, keep your eyes open. Crypto scams that effect your family members, effect you.