As long as the crypto market is still new and mostly unregulated, attackers will always find new ways of scamming investors out of their money. I have been a victim of such scams, and there’s nothing you can do about that. So, with my experience in cybersecurity and as a crypto investor, these are some of the malicious ways attackers can steal your money.
Phishing websites
These are normally links sent to your DMs asking you to sign up for an exchange for an
airdrop (free crypto). These links might be similar to websites you might already know and might trick you into inputting your login credentials. If the website seems weird, you can visit the real one you are sure of to verify.
The hot wallet scams
With the craze of NFTs and minting them, most NFTs require you to mint using your hot
wallet. Metamask, Trust, and Coinbase are common wallets used to mint NFTs. The scam
comes in when a phishing link asks you to input your secret Metamask phrase when trying to mint. DO NOT INPUT your passphrase when logged onto any website.
These wallets do not need authentication, so transferring your assets is easy.
Rug Pulls
Personally, I did fall for this scam. It is a learning experience, so your guardian angel will
walk you through what it is and how to prevent it. I call it “organized crime,” as it doesn’t
involve just one party, and participants of this scam may take part in it knowingly or
unknowingly— even celebrities. Kim Kardashian and Floyd Mayweather have been sued
because they promoted EthereumMax, which cost investors money after inflated prices. I
would say don’t invest in a cryptocurrency if:
1. developers are anonymous (Bitcoin being an exception)
2. the smart contract has not been audited by a trusted auditing service
3. the future of the investment is not achievable
Get on Discord, Reddit, and other credible crypto forums and join discussions of such coins, NFTs, or giveaways.
Fake Airdrops
I love free things; I mean, who doesn’t? Airdrops make people rich and, at the same time,
drain investors’ accounts. I have an airdrop of 150000 MNEB ($6000), which is just sitting in my account. It was suspicious, so I researched Reddit forums, and to confirm my suspicion, it’s a scam coin. The only way to exchange that is to connect your Metamask wallet to Pancakeswap. Once the swap is complete, you lose all your funds. So, be sure to research airdropped crypto coins before swapping.Being scammed is a terrible experience, and no investor should go through it. Although the explained scams are only a few, they will help you stay alert and prevent loss of investment.
It is advisable to always research extensively before any investment.