Better Business Bureau Warns of Widespread Crypto Scams

Better Business Bureau Warns of Widespread Crypto Scams


Cryptocurrencies are a popular form of digital money that many enthusiasts use as an investment or an alternative to traditional banking services. If you’re interested in trading crypto, you’ve likely got your favorite online exchanges and a crypto wallet that stores your digital tokens. 

However, all crypto users need to know about the tactics scammers use to fleece honest traders of their hard-earned money. Here are a few examples of the insidious schemes that scammers could use to target your crypto wallet.

Phishing Scams

Be careful about who you give your information. If you get an email from someone who claims to represent a crypto exchange, eye it with suspicion. Check the email address and subject the email to close scrutiny. If the sender claims to need your password and username to help resolve an issue with your crypto wallet, they’re trying to scam you.

Likewise, make sure you check all URLs you visit. If you follow a link to a webpage and the URL doesn’t match the site you’re on, you’re probably looking at a phishing site. These fake websites use their convincing appearance to lull users into handing over their login credentials. 

Account Safety

Sometimes, hackers can leak your password even if you’re careful. That’s why you need to use two-factor authentication to safeguard your finances. Enable app-based authentication, which will require you to use a third-party code to verify your identity when you log in from a new device.

Avoid enabling phone-based authentication. Dedicated scammers can engage in a shady tactic called SIM swapping, essentially stealing your phone number, allowing them to intercept authentication text messages and bypass your security. Use third-party apps like Google Authenticator, which generate unique authentication codes at regular intervals. 

Social Media

Disregard any social media posts regarding cryptocurrency. Even if you see a famous celebrity endorsing some new digital coin, you’re probably seeing a scam in action. Stick to established crypto standards like Bitcoin and Ethereum when you’re exchanging money for digital currencies. Scammers often use fake celebrity endorsements to trick unsuspecting users into handing over real money for useless digital tokens.

You should also be wary of any shady sellers who offer to exchange material goods for crypto. These sellers are often scammers who want to access your crypto wallet and then drain it to exchange your tokens for government-backed fiat currency. You should always safeguard your crypto wallet’s address, even if you think the seller is trustworthy.