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Have you also invested or are thinking of investing in cryptocurrency? If yes, this article is for you. In the ever-changing landscape of digital assets and currency, it is important to know how to keep safe your financials online. Especially, with the rise of a new breed of cybercriminals eager to exploit the growing number of investors.
Why is it more important than ever to protect yourself from crypto hacks? Because now a dangerous new scheme of circulating fake Tether is on the rise. With cryptocurrency being the third-largest most used digital currency, Tether is now the most used exchanged currency attracting many scams.
Launched in 2014, Tether is the 1:1 stablecoin designed to be an equal counterpart of the US dollar. Tether now is an integral part of the cryptocurrency market serving as a bridge between traditional fiat currencies and digital assets.
In the case of Tether, USDT offers traders and investors a way to quickly move in and out of positions without converting to fiat, providing stability in an otherwise volatile market. With a market capitalisation of over $100 billion under its belly, Tether works as the number one cryptocurrency as of 2024. However, its less volatility, widespread popularity easy adoption and liquidity are proving to be the prime target for various scams. In this article, we’ll share what are crypto scams, and how to protect yourself and avoid crypto scam platforms.
a. Ice Phishing Scams: Phishing is one of the most used tactics by scammers. In this fraudsters send fake emails or messages, impersonating legitimate exchanges or wallet providers and even celebrities to steal sensitive information, such as login credentials or private keys. Once fulfilled, these scammers trick the user into directly signing their rights into a blockchain and hence taking every digital asset in their name. As per research done by Forta, around 55% of crypto scams are Ice Phishing.
b. Counterfeit Tokens: The digital thief in this type of scam creates fake USDT tokens, often with similar names or logos, to deceive investors into buying worthless assets. These counterfeit tokens resemble real tokens but are fake. Such types of tokens are used in ICO (Initial Coin Offerings)& Token Sales, Airdrops and Giveaways and Launchpool Token Schemes.
c. Fake Exchanges: Scammers set up fake exchanges, promising unusually high returns or lucrative investment opportunities, to steal funds from unsuspecting investors.
d. Social Engineering: In social engineering types of scams, the scammers pose as a legitimate firm to gain the victims' trust. They produce a support system, people solving their problems and much more. Once trust is gained, these scammers access victims’ funds and take everything.
e. Malware: Through malware, scammers make sophisticated malware that can replace clipboard addresses with the scammer's own wallet address, redirecting USDT transfers to the fraudster instead of the intended recipient.
a. Verify Token Contracts: When buying a token, always verify its source, its authenticity and reliability with how many people are using it. One way is to check the official website Tether website as it publishes its contract addresses and reputable blockchain explorers.
b. Use Official Channels: After doing business with one cryptocurrency or blockchain, only interact with USDT through official and verified channels. Some of the well-known and reputed sources are centralized exchanges or directly through Tether's official platform.
c. Enable Two-Factor Authentication (2FA): Use strong 2FA methods like hardware keys or authenticator apps on all your crypto accounts to add an extra layer of security.
d. Be Wary of Unsolicited Offers: If an offer seems too good to be true, it probably is. If you didn’t ask for a Tether coin, do not accept any lucrative offers. Because mostly. These offers are phishing scams.
e. Keep Software Updated: Keeping your software updated will help you avoid your wallet being exposed to threats. Also regularly updating your wallet software, browsers, and operating systems protects against known vulnerabilities that scammers might exploit.
f. Use Hardware Wallets: For large holdings, consider using hardware wallets to store your USDT and other cryptocurrencies offline, making them less vulnerable to online attacks.
g. Educate Yourself: Stay informed about the latest scams and security best practices in the crypto space. Knowledge is your best defence against evolving threats.
With cryptocurrency on the verge of overtaking traditional currency, it is important to choose, protect and use digital wallets more carefully. Applying new information with privacy in mind will provide a secure space for your digital transactions.
