Shield your investment from scams

One of the most important blockchain topics that users discuss is the security provided by the platform. Cryptocurrencies can be targeted by scammers for illegal activities due to its lack of regulations and security control. Unfortunately, there are many malware users that don’t waste any opportunity to scam millions and generate distrust in the crypto technology. Most scams have clear warning signs and with a basic knowledge and common sense, users can outsmart cryptocurrency scams and protect their wallets, that’s why it is important to understand the most common types of scam on Blockchain.

Keep reading for the lowdown on the most common blockchain scams and how to avoid them.

Most common types of scams

Scams on cryptocurrency exchanges and wallets

Users trade their cryptocurrencies/tokens in exchange pages on the web, where they have their investments in wallets. These exchanges provide different kind of services, one of them is giving access to multiple cryptocurrencies at one platform. Many governments had imposed regulations upon these exchanges, read our Medium article to learn more about “Regulations Applied To Cryptocurrencies Around The World” to ensure that their citizens are protected and that all exchanges follow a list of security protocols, but , on the other hand , there are many countries that don’t have any type of regulations and the potential for any scam is multiplied.

Commonly scammers may develop a fake wallet app or exchange page where innocent victims provide their private keys, and that’s where the scam begins.

How to protect yourself from crypto scams

Tips to protect your wallet and exchange account

All users before trusting in a wallet or exchange app/web should do a depth research before and know more about its reputation and its transactions.

If the exchange is new in the market and it blows up and they start making news in a very quick way, it is usually a scam page.

Another way to catch a red flag on exchanges, is when they offer massive discounts that attract new investors becoming scams victims.

Don’t deposit funds or provide any personal information without investigating first.

Don’t download any wallet from an app store. Do the research.

Last and not least, the user can look into an exchange URLs certification and verify if it is authentic.

Scams on ICOs

Along with the term of blockchain it is very common to hear about the ICOs (Initial Coin Offering), read our Medium article to know more about this concept “Telos was born without an ICO or STO” .Through ICOs, many enterprises can raise funds for their projects. When a ICOs is fraudulent, these “companies” fake websites for users to deposit coins, these scammers can be a group of people that come together for the scam. There are many crypto enthusiasts that want to invest in this new technology but they don’t have the necessary knowledge or information about it, that is why scammers take advantage of these people and convince them to buy a cryptocurrency that doesn’t actually exist. For example, according to Cointelegraph, 80 percent of ICOs conducted in 2017 were scams.

Tips to protect yourself from fraudulent ICOs

You should not invest in an ICO until you’ve done significant research about the organization.

Give a meticulous read to their white paper along with reading up on their team, the purpose of the currency, the tech behind it, the specifics of the token sale and other investors.

Malware Scams

Most common cases are the theft of credit cards and bank account details, but in the blockchain world, this concept is reflected in stealing the information of your web wallet or exchange account through hackers that infect your computer with a cryptocurrency miner and replacing your legitimate address or private key with a scammer address.

Tips to protect yourself from malware scams

Update your antivirus software regularly.

Don’t open suspicious attachments.

Don’t download or install programs without verifying that they are trustworthy.

Ponzi or pyramid schemes

Crypto pyramid or Ponzi scheme lures new investors with the promise of high returns by recruiting more and more members for a specific project, promoting it as a “risk-free” for investments. The goal is to convince as many investors as you can and the member receives a “return” that comes from new investors, this action satisfies the initial investors, believing the legitimation of the project, but what is really happening is that these people are being scammed and are encouraged to invest more and more money believing that they are going to have more profits, encouraging others to do so, until the scheme collapses.

Tips to protect yourself from ponzi schemes

Seek to increase your investment knowledge.

Never trust a scheme that promises returns that sound too good to be true.

Telos Blockchain is one of the most secure and transparent blockchain

In conclusion…

If you want to invest in cryptocurrencies, the first thing that you must do is research and investigate the reputation of a specific crypto, learn about their investors, learn about its white paper, among many other important information. Nowadays, Telos Blockchain is one of the most secure and transparent blockchain. If you want to learn more about it read our Medium article “Telos, the future of blockchain security” ,with a very valuable token and a very committed community . If you want to invest your money and not worry about the security of it, invest in TLOS token.