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Taking financial advice from unregistered, random people online or trading with unregistered companies that don’t have a physical presence in the United States substantially increase your fraud risk. The alarming statistics surrounding crypto scams serve as a reminder of the potential threat that exists. Staying informed about the latest threats and implementing proven safety measures can make a crucial difference in safeguarding your investments. Other common safety practices include avoiding public Wi-Fi when accessing your wallet online, as unsecured networks can expose you to various cyber threats. Storing assets in a hardware wallet means that your funds remain offline and protected; however, cold wallets may not be convenient for frequent transactions. Remember that cryptocurrency investments should be part of a broader, diversified investment strategy.

Due to the massive number of complaints, we receive each year, IC3 cannot respond directly to every submission, but please know we take each report seriously. With your help, we can and will respond faster, defend cyber networks better, and more effectively protect our nation. Crimes against children should be filed with the National Center for Missing and Exploited Children.

• The unwitting victim will then send crypto to the wallet hoping to extract the funds from it.
• Many victims face challenges in traditional reporting methods, including stigma or fear.
• As of the date this article was written, the author does not own cryptocurrency.
• To be prepared, you can freeze your credit, change your passwords, and keep an eye out for suspicious activity.

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Unsurprisingly, younger digital generations have embraced cryptocurrency quicker than most. For further perspective, in early 2023, the International Monetary Fund found that trillions of dollars of value in cryptocurrencies have been lost following platform collapses. Given that they’re not government-regulated, cryptocurrencies can sometimes feel like the Wild West of the web. Non-fungible tokens (NFTs) are assets that can represent real or digital goods and whose ownership is recorded in a blockchain. In the last several years, there has been a huge explosion in the amount of NFTs created and sold.

Between staying connected with family and friends, shopping and banking online, and working remotely, we all depend on security in our interconnected digital world. Criminals from every corner of the globe attack our digital systems on a near constant basis. They strike targets large and small — from corporate networks to personal smart phones. In cyber security, where a single compromise can impact millions of people, there can be no weak links. Every organization and every individual needs to take smart, reasonable how to choose bitcoin wallet steps to protect their own devices and systems and to learn how to spot and avoid scams.

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Bitcoin works on a decentralized peer-to-peer network, and operates without need for banks, trading platforms or other intermediaries. Anyone can fall prey to a phishing scam and any digital asset can be the target of such a scam, as actor and film producer Seth Green realized earlier this year when four of his Bored Ape NFTs were stolen. “The link directs to sell bitcoins for paypal a fraudulent website and harvests the investor’s account credentials, allowing thieves to login and withdraw assets,” Cummings says.

Social media cryptocurrency scams

Founders could distribute unregulated tokens or mislead investors about their products through false advertising. Blackmailers make the claim to potential victims that they have a record of adult websites or other illicit web pages they claim the user frequents. The blackmailers then threaten to expose the individuals unless they share their private keys or cryptocurrency with them. Such cases represent a criminal extortion attempt and should be reported to a law enforcement agency. Just as financial criminals will try to steal money from your bank account or put fraudulent charges on your credit card, crypto scammers will do anything to take your crypto. To protect your crypto assets, it helps to know when and how you’re being targeted and what you can do if you suspect that a cryptocurrency or any communications related to it are a scam.

Proper documentation includes timestamps and screenshots to enhance report clarity. Victims may hesitate to report crimes due to fears about their personal data security, especially in sensitive situations such as cyberstalking. Someone sending you a crypto offer (especially if you don’t know them well) could send you to a site designed to phish your personal information or financial logins or install malware on your device. It’s important to not underestimate crypto scammers and their devious tactics. Be on the lookout for anyone offering NFTs with guaranteed growth—like any investment, there are no guarantees. Be sure to double-check the background of NFTs, as some people create elaborate stories about artists to increase sales and drive up prices artificially.

Recognize business and government imposters who want your money

If you don’t recognize the phone number, or message sender, do not respond. If you receive an urgent message about a financial account, or from law enforcement, the CFTC, or other government agencies, visit the entity’s official website and confirm the message with customer service staff. Implement strong security practices, including using hardware wallets for significant holdings, enabling two-factor authentication on all accounts, and maintaining separate email addresses for cryptocurrency activities. Never share your private keys or seed phrases with anyone, regardless of how legitimate they may seem.

Investment or ‘Get Rich Quick’ scams have been around for a long time and aren’t exclusive to the crypto space. Yet, with cryptocurrency, scammers take advantage of amazon is developing its own ‘digital currency’ project the anonymity of wallets and the irreversibility of transactions. To protect yourself and your belongings, you need to know how to avoid crypto scams — even when these tactics are involved.