Common crypto scams: How to avoid them
What is a scam?
Given the level of hype surrounding the blockchain industry, more specifically the cryptocurrency market, understanding the most commons scams and how best to protect your crypto assets is key.
Fraud and scams can affect us all. In fact, fraud has now overtaken theft as the most common type of crime.
At Skrill, protecting your account and keeping your assets safe is our priority, which is why we want to help you understand the variety of different scams out there. Here, we break down the top types of scams and what you can do to keep your crypto assets safe.
Investment scams
These scams push you to invest your money by promising high returns on your investment. Often, they will falsely claim that there are no financial risks associated with the investment.
But remember, without exception all kinds of investment carry a risk. So, if you are considering sending your crypto to a third party, look for publicly verified reviews or other credible sources confirming that the third party is legitimate.
Money mules
A money mule is a person who transfers stolen funds or digital assets on behalf of others. In the context of fraud, many money mules take part in crime unknowingly.
For example, criminals laundering money may ask you to accept funds into your bank account and then transfer them to another account. Being involved in this process is a criminal offence, and the mule is held accountable in a court of law.
The criminals running these schemes can approach people both in person and online, and their approach can take various forms. One example is as a job advertisement, where the criminal asks for your bank details so they can send you funds or gets you to apply for bank cards in your name. Read More…
