How to Protect Cryptocurrency from Scammers

The cryptocurrency industry is evolving and people are willing to invest in cryptocurrencies. It is no secret that people are spending more time on their smartphones than desktops. Moreover, cybercriminals have also turned their attention to them. Let’s have a look at this problem to learn more about its impact on cryptocurrency users.

Let’s start with fake exchange apps. It is possible to protect crypto against such scams. People have to check the exchange’s official website to verify if they indeed offer a mobile trading app. If they offer a mobile app, it is desirable to use the link provided on their website.

Another step is to read the reviews and ratings. Interestingly, fraudulent apps often have many bad reviews with people complaining about getting scammed, so it makes sense to check them. Nevertheless, users should also be skeptical of apps that present perfect ratings as well as comments. As a reminder, any legitimate app has its fair share of negative reviews.

Moreover, it makes sense to check the information about the app developer. Users have to look for an email address, website, etc. Moreover, people should also perform an online search on the information provided to see if they are really related to the official exchange. Moreover, it is desirable to check the number of downloads. Moreover, the download count should also be considered. Importantly, it is unlikely that a highly popular cryptocurrency exchange would have a small number of downloads.

Furthermore, people can activate two-factor authentication on their accounts. Although not 100% secure, two-factor authentication is much harder to bypass and can make a huge difference when it comes to minimizing risk factors.

Cryptocurrency and important details

There is no lack of fake cryptocurrency wallet apps. Importantly, there are many different types of fake apps. For example, one variation seeks to obtain personal information from users such as their wallet passwords and private keys.

In certain cases, fake apps provide previously generated public addresses to users. So they presume funds are to be deposited into these addresses. Nevertheless, they do not gain access to the private keys and hence do not have access to any funds that are sent to them.

Let’s have a look at some preventive steps that can be taken to avoid becoming a victim. It is worth noting that, the precautions highlighted in the exchange app segment above are equally applicable.

Moreover, a legitimate wallet app allows a user to export the private keys, but it is also important to ensure the generation of new key pairs is not compromised. People should use reputable software.

However,  even if the app provides a private key, cryptocurrency users should verify whether public addresses can be derived and accessed from them. For instance, some Bitcoin wallets allow users to import their private keys or seeds to visualize the addresses and access the funds. It is possible to minimize risk factors by performing this on an air-gapped computer (disconnected from the internet).

Crypto-related scams

As can be seen from the information stated above, cryptocurrency users should pay attention to various scams. Let’s have a look at one of the favorite scams of cybercriminals. It gained popularity among cybercriminals due to low barriers of entry as well as low overheads required. Moreover, it offers them the potential for long-term recurring income.

Hopefully, it is possible to minimize the risk factors. For example, it is desirable to download apps from official stores, such as Google Play. Moreover, cryptocurrency users should monitor their phones for excessive battery draining or overheating. Furthermore, it makes sense to update the device as well as apps so that security vulnerabilities get patched.

It is possible to make it harder to steal cryptocurrencies and users should spend more time gathering more information about various common scams on mobile devices.