Just like every other business out there, participating in ICO ventures comes with lots of risks. Just by clicking on ads, you could become vulnerable to ICO frauds flying around the cryptocurrency space. But then, just as these crooks devise new tricks of defrauding investors of their life savings, we will continue to bust them so as to rid the crypto-sphere of bad eggs.

Here Are The Cryptocurrency Warning Signs

• Social Media Scam: If some guy comes to your social media account claiming to be the founder of an ICO, kindly ignore the person. Yes, this is the new trick they use to scam unsuspecting investors, and you shouldn’t fall for it. Sometimes, they create an account similar to that of a celebrity (someone popular).
• Fake Websites: Phishing is a common practice among cryptocurrency thieves. Primarily, they operate by imitating popular exchanges. They give unsuspecting cryptocurrency enthusiasts the impression that they are the real exchange. These fake websites go as far as purchasing Google ads. The best way to overcome such sites is by directly typing the URL into the address bar whenever you wish to access the site. Also, real cryptocurrency exchange sites will always have https, where the “s” means that it is “secure.” The real sites also enable two-factor authentication before users may access their wallets.
• Questionable Mobile Apps: These mobile apps are like the fake websites. Although they exist in stores like Google Play and iOS Stores, they become part of a routine deletion once users report them fake. An example is the Poloniex scam, which many Android users lost their money to. Shady developers designed the phony version of that app and defrauded users before its nefarious discovery. To stay safe, you are strongly advised to always ensure that the ICO or wallet applications that you install come directly from its official website.
• Fraudulent Emails: Many crooks send fraudulent emails to inform users about a fake ICO launching. Because it is not difficult to impersonate an ICO issuer, these scammers do it all the time and luckily succeed, duping people of their money. If you receive such emails, pull up the previous emails from the ICO issuer and compare them. Endeavor to pay attention to the email/website address and grammatical errors.

Final Thoughts

Frauds are always bound to happen when you involve huge sums of money. Virtually everything that is original almost always has a fake one. These tricks discussed above are old cybercrime methods – nothing has changed. It’s more like fresh wine in an old bottle. Yes, applying old tricks in a digital currency ecosystem. Always be on the guard; before investing in ICO ask yourself the following questions: does the company have a feasible business plan? Are the team members real or frauds? Does it have specific terms and conditions? Finally, keep yourself abreast of the latest news in the crypto-world by bookmarking our site.