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Avoiding Digital Currency Scams
Avoiding Digital Currency Scams

Detailed information on common scams and how to avoid them

Valery avatar
Written by Valery
Updated over a week ago

Secure Your Cryptocurrency Transactions

Unlike certain traditional finance transactions (e.g., purchases via your credit card), transactions made using cryptocurrency are largely irreversible.

When you transact with a third party using cryptocurrency, the transaction cannot be halted. There is no way to cancel, reverse, or refund the transaction.

Before transferring cryptocurrency, you should verify the third party that you are transacting with is trustworthy. Additionally, you should ensure that all transaction information is accurate prior to submitting instructions for a cryptocurrency transfer. Remember, only transact with third parties that you trust. will never:

  • Send you a link to install software on your device

  • Remotely access your account or device

If you receive a request for any of these, please reach out to our Customer Support Team at [email protected] or via the in-app chat in the App. Additionally, do not whitelist wallet addresses from any source that you do not have complete confidence in controlling your finances.

How to Avoid Common Crypto-Related Scams

Investment Scams

Here, scammers ask you to send them cryptocurrency for an ‘investment’, promising high returns with little to no risk. They may request for you to refer people to them as well, creating a constant flow of individuals that they can scam. This is akin to a Ponzi or pyramid scheme.

Tips for avoiding investment scams:

  • Do not whitelist wallet addresses from a platform or individual promising high or quick returns

  • Only send cryptocurrency to third parties you trust.

  • Thoroughly research the third party you are sending cryptocurrency to.

  • Look for language errors in communications or websites provided by the third party.

  • Ensure that the third party has a legitimate website and business phone number.

  • Make sure the website you are visiting is legitimate and that the URL is not manipulated in a way to look like a legitimate one.

  • Never send money, trade, or invest based on the advice of someone you have only met online.

Romance Scam

For romance scams, scammers create fake profiles on dating apps and social media sites. They then contact people and attempt to develop a relationship. Thereafter, they may suggest moving the conversation to a private channel, like an instant messaging app. The scammer typically says they live in another country or far away enough not to be accessible, but claims they still want to meet and develop a relationship.

At some point, they will request money urgently and ask you to send it via gift cards, prepaid debit cards, or cryptocurrency. If you agree, the scammer may ask you to make a transfer using a dubious crypto app. Alternatively, they might ask you to sign up for a legitimate platform to gain your trust before asking you to buy cryptocurrency on it and send it to them.

Tips for avoiding Romance Scams:

  • Do not whitelist wallet addresses from someone you recently met through social media

  • Check the person’s profile picture using a reverse image search to see if it has been used previously.

  • Be wary of anyone asking you to send money in gift cards, cryptocurrency or via wire transfer.

  • Be cautious of anyone trying to advance a relationship too quickly.

  • If you have not seen someone throughout a relationship, even over a video call, it is a major red flag.

  • Only download apps from legitimate platforms, like the Apple App Store or Google Play Store.

  • Investigate the people you meet online and ensure they are really who they say they are.

Pig Butchering Scam

This is a hybrid scam, combining techniques from romance and investment scams. This scam is usually run by a ring of scammers who mine dating apps and social media platforms to search for victims. The victims usually have similar stories, first meeting the scammer on a dating app or on social media. The scammer gains their trust and claims to have knowledge of investing in or trading cryptocurrency that will result in substantial profits.

The victim is then directed to transfer large amounts of cryptocurrency to wallets controlled by the fraudsters. They might even make the scam more elaborate by requesting smaller amounts first before asking for more as time goes by.

Tips for avoiding Pig Butchering Scams:

  • Never send money, trade, or invest based on the advice of someone you have only met online.

  • Do not whitelist wallet addresses of someone you do not know well or only met recently

  • Do not share your financial status with unknown or untrusted individuals.

  • Do not provide your banking information, personal details, copies of your ID card or passport, or any other sensitive information to anyone online or to a website you are unsure of.

  • If an online investment or trading site is promoting unbelievable profits, it is most likely a scam.

  • Be cautious of individuals who claim to have exclusive investment opportunities and urge you to act fast.

If you ever identify a potential scam, please report it to your local law enforcement. We will then work with any law enforcement agency that reaches out to us. Learn more about common cryptocurrency scams here.

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