How to Protect Your Money With PointPay. Say NO to Crypto Scammers
Even though there are many effective ways to protect digital assets, crypto scammers go to great lengths to deceive users and get their funds. So let’s figure out what you need to do in order to avoid becoming a victim of a crypto scam with PointPay.
According to the Ministry of Internal Affairs of the Russian Federation, the number of crypto-frauds and other “acquisitive crimes where virtual currency acts as the subject of a crime” is growing annually in Russia by 400%. Furthermore, it is believed that crypto scams and hacktivism will gain momentum in 2022, because of the rise in the number of lay investors, who do not fully understand the nuances of cryptocurrencies.
- the unclear status of digital assets;
- the anonymity of counterparties;
- the difficulties in tracking;
- the impossibility of classifying cryptocurrencies as objects of civil rights.
There are some of the most common schemes and techniques used by crypto scammers:
- Multi-Level Marketing pyramids. A good example is the One Coin project, a cryptocurrency that did not have its own blockchain but attracted about €4 billion in investments over the three years of its existence.
- Giveaways. As part of this cryptocurrency scam scheme, users are offered to send cryptocurrency to a specific wallet and get twice, thrice, or even more back. This is often done on behalf of media personalities, for example, the head of Tesla and SpaceX, Elon Musk, or the creator of Ethereum, Vitalik Buterin. In order to do this, crypto scammers create fake accounts on social networks.
- Promises of quick money. Crypto scammers are very fond of using the so-called thirst traps. They lure their victims with the promise of easy income without hard work. However, you can easily guess that at first you would be asked to send money.
- Romance scam. Cryptocurrency scammers usually find their victims through dating websites or apps like Tinder. The scam works like this: a fraudster gets into confidence and, as a result, offers an unsuspecting victim to invest in a supposedly profitable crypto project. There are also known cases where crypto scammers used LinkedIn, an employment-oriented online service, to get a person to invest in a project. As a result, people spent a fortune and gave away all their savings, being left with nothing.
Users regularly lose money on phishing websites. Fake Internet resources look almost exactly like the websites of real projects but have almost unnoticeable differences. For example, the difference may be in one single letter or punctuation mark.
Another scam is fake mobile apps available for download from the Google Play store and App Store. Such applications look almost like real ones but may differ slightly in the logo.
Last year, scammers have often impersonated Elon Musk. For example, such a situation happened in Germany. A victim lost about ₤400 thousand on “giveaways” on behalf of Elon Musk. On Twitter, scammers promised to double the amount of bitcoins if a person manages to transfer them to a specified account before a particular time. A teacher from Brighton (UK), Julie Bushnell, fell victim to the same fraud scheme: she saw the announcement that Musk would double all the invested money on a fake BBC News website.
According to data published by the Federal Trade Commission, the number of cryptocurrency scams has increased dramatically since October 2021, reaching an all-time high in the first quarter of 2021: about 7 thousand people were affected, the total amount of losses exceeded $80 million.
How to protect yourself from cryptocurrency scams
The team of highly qualified specialists behind PointPay, the first of its kind blockchain-based crypto bank, is primarily interested in ensuring that their users from all over the world do not fall victims to crypto scams.
Please be aware that any offer to send cryptocurrency to an unknown or suspicious organization or individual is most likely a cryptocurrency scam. What is more, you should be in awe of messages with various “generous offers” and giveaways that you receive by email, instant messengers, and social networks.
Check the links of the websites you visit carefully. It is worth remembering that any fixed and guaranteed profitability is a characteristic feature for dubious financial institutions.
Crypto scammers take advantage of people’s ignorance, as there are always a lot of newbies on the crypto market. Therefore, to protect yourself, you need to improve your financial literacy, understand how the blockchain industry works, and always keep up with the latest crypto news.
This can be done by visiting the official PointPay website and following PointPay on social media. After reviewing all the information, you can be sure there is no PointPay scam or PointPay fraud. Stay tuned for more news and tips on how not to be scammed!
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