New Cryptocurrencies: red flags to watch out for
Although crypto has been having a rough few months, interest in cryptocurrency investing hasn’t died down. Neither has scammers’ desire to part would-be crypto investors with their money.
One of the cleverest schemes the scammers run involves setting up a 100% fake cryptocurrency and getting people to invest in it. Here are some things you need to watch out for:
1. Promises of a guaranteed return on investment
If a crypto guarantees returns, stay well away from it. Cryptocurrencies have a high potential for big returns, but they’re certainly not without their risk. In investing, there are no guarantees.
2. In-your-face promotion
Scammers will create fake social media accounts and send you private messages encouraging you to invest in their new crypto. You may be bombarded on all fronts — Instagram, Facebook, Twitter, and more.
3. A website with lots of grammar and spelling errors
If you see a typo or poor grammar on its official website, chances are, the crypto you’re considering investing in is a scam.
4. Difficult to buy
Major cryptocurrencies are now available for purchase on all top cryptocurrency exchanges, such as Coinbase, Binance, and Crypto.com. If you cannot find a cryptocurrency on any of the most popular exchanges, chances are it’s a scam.
5. Bad reviews
Scour the Internet and check for any related reviews. Do not just rely on one source, check social media, online forums, and dedicated review websites.
Cryptojacking involves the installation of malware on a device from a malicious source, to hijack computing power and secretly mine cryptocurrencies (eg. Monero $XMR), without the user’s knowledge or consent.
How to protect yourself
- Be sceptical – if it seems too good to be true, it is
- Don’t click on links in messages sent to you by unknown senders
- Get internet security, like Trend Micro Device Security Ultimate. It will detect and block cryptocurrency scams as well as block web threats and malicious advertisements, which are a common source of cryptojacking scripts.