Crypto scams are a fact of life in the cryptocurrency world. The sheer size of the potential market means there are more people trying to take advantage than ever before. If you want to avoid getting scammed, it’s important that you know what types of scams exist and how to avoid them. In this article, we’re going to take a look at three common crypto scams: blackmail, sextortion and ransomware. Let’s get started!
Blackmail
Blackmail is one of the most common types of crypto scams. In this scenario, you receive an email that demands payment in Bitcoin from someone claiming to have compromising photos or videos of you. They may even claim that if you don’t pay up they will release these files publicly and ruin your life forever. The blackmailer often uses email spoofing to make it appear like the email is from a trusted source (such as your boss or partner). The victim is asked to send bitcoin directly into an account controlled by the scammer instead of sending money through platforms like PayPal or Venmo where it can be easily traced back to them later on.
Sextortion
Sextortion is the act of threatening to release sexual content or images of a person unless the victim pays money. This type of scam is often used by criminals to extort money from victims, who are typically contacted via email, text message and online. According to the FBI’s Internet Crime Complaint Center (IC3), there has been an increase in these types of scams since 2012. The IC3 says that “sextortionists target both men and women” and their methods can vary depending on how they obtained their victim’s information:
- Through social media platforms like Facebook or Instagram;
- By hacking into personal accounts such as email accounts or web browsers; or
- Through dating websites like Tinder or Matchmaking sites like OkCupid where users post personal information about themselves including photos which criminals use against them later on down the line when trying to blackmail those same individuals into paying up so that no further harm comes from releasing any compromising material onto public platforms where anyone could see them (which would lead potential employers away from hiring someone whose reputation has been damaged due their involvement in such activities).
Ransomware
Ransomware is a type of malware that blocks access to your data and demands payment in order to release it. It can be installed through phishing emails, infected websites, or even through a USB stick you connect to your computer. If you have been infected with ransomware:
- Do not pay the ransom! This only encourages these criminals and makes them more likely to continue their attacks in the future. Instead, consider paying for professional data recovery services or trying one of the programs listed below (or both). They may be able to recover some or all of your encrypted files without needing to pay anything at all!
It’s important to remember that there are many ways to protect yourself from crypto scams. It’s also important not to overreact or let fear dictate your decisions when faced with potential threats. Crypto is still a relatively new area of business and technology, so there will always be some uncertainty about what may happen next. However, by following these tips and being aware of common scams in this space–as well as how they work–you can ensure that your funds stay safe!
