Crypto currencies are the promise of profit to the unsuspecting and scammers know that those that are vulnerable are willing to fall for their scams. Unregulated, crypto currencies are everywhere and threat actors are keen to dangle the dreams of fast profit to people that typically know little or nothing about this digital currency. It has become a “Wild West” of scammers and their prey but there are a few things you can do to assist in protecting yourself.

South Africa has become fertile ground for bad actors in the crypto currency world. The delights being shown to investors have included bitcoin, Ethereum, Monero aand Dogecoin. However, like the old gold rush of the 1800’s, few make anything and many lose everything. The 2021 hack of Africrypt, the SA-based cryptocurrency organisation, stole R51 billion in the money investors made – wiping out any and all, while the Africrypt founders disappeared. Further investigations are now showing suspect that the cryptocurrency platform was a complete fraud.  

The masters of fraud take advantage of those that are dazzled by trends and are attracted by splashy social media posts and headlines. Unlike the standard stock market, there aren’t any rules to govern cryptocurrency and they push the get-rich-quick-schemes. Those that have invested are unaware that they could lose it all in a breach/hack. 

To protect yourself you need to be educated and aware of some of the most common scams.

• Ponzi schemes- invest in non-existent companies. Cryptocurrency scammers love these as they dangle the promose of a new technology that’s ‘cutting edge.’ 
• Copycat and fake exchanges- These cybercriminals send an email or text with a promise of accessing a vitual cash store in cryptocurrency exchanges. The user must typically pay a fee and since the exchange doesn’t exist, they lose their money. Copycats offer what might look like a real wallet service and users download the wallets while installing malware on their device. IOS devices are compromised.
• Fake endorsements by celebrities- Using AI, scammers can post false videos or statements on hijacked social media accounts. Johnny Depp recently put out a severe warning about scammers using his information and profile. 
• Pump and dump- Bad actors have investors place their money in shares of little-known cryptocurrency companies based on misinformation that they supply. When the shares rise, the criminals quickly sell at a profit leaving the victims with worthless coins/stock. 
• Imposter apps- Threat actor emulate real cryptocurrency apps and upload them to the app stores. Once installed on your devices the app steals your personal and financial info and puts malware on your devices. Other imposter apps have the victim pay for non-existent services and then they will have access to the cryptocurrency wallet logins. 
• Phishing – Using email, social media or text, the cryptocriminal emulates a trusted source that asks for a cryptocurrency payment. 

Be Sceptical

If you want to avoid being a victim of a scam – be very very sceptical. Use the “if it’s too good to be true….” adage. Don’t give out your personal information to anyone that makes contacts that are unsolicited, even if they seem to be legitimate or from a friend. In today’s virtual world, scammers hijack social media and email accounts. 

“DaVinci Cybersecurity educates our clients to help to protect them from scammers. We encourage two-factor authentication and inform on the best firewalls to help to protect their devices. We maintain a state of the art updated agenda of the latest scam attempts and share as a warning to keep them from becoming victims.”

Sharon Knowles, CEO DaVinci Cybersecurity

Source:

https://www.eset.com/za/about/newsroom/press-releases-za/press-releases/cryptocurrency-scams-are-on-the-rise-in-sa-how-crypto-cons-work-how-to-protect-yourself/?srsltid=AfmBOoqR1iZLc8Ewosig3TaUO-k7Baxdmqpbvr21reAwtPn6c-44RYQT

https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams 

Crypto scams: how to avoid becoming a victim