Cryptocurrency scams - Information and security

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Information and security
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bet | 10/18 | Sana | 20.05.2024 | Hajmi | 63,57 Kb. | | #246102 |
Bog'liq INFORMATION AND SECURITYCryptocurrency scams
Cryptocurrency has been around since 2008, when Bitcoin and the blockchain technology that records its transactions were created. In the last two years, Bitcoin has become extremely popular in the media, and many other types of cryptocurrency, such as Ethereum, have started or grown.
Your cryptocurrency is stored in a digital wallet and is accessed by using a private key or seed phrase, which functions like a very strong password, to approve buying and selling. It's the same as giving someone else access to your safe if they have your private key. It gives them complete freedom to sell or exchange with anyone else.
There is risk with cryptocurrency because it is decentralised, which means there is no central authority guaranteeing it.
The Financial Markets Authority warns of three risks regarding cryptocurrencies:
They’re high risk and highly volatile - the price can go up and down very quickly
They’re not regulated in New Zealand
Cryptocurrencies, crypto-exchanges and the people that use them are often the targets of hacking, online fraud and scams
There has been a significant increase in the number of incidents involving stolen cryptocurrencies or cryptocurrency-related scams, such as Bitcoin. The majority of the issues can be divided into two categories: cryptocurrency scams and stolen cryptocurrencies.
Cryptocurrency investment scams – these scams operate by sending out emails, or setting up fake websites, which advertise cryptocurrency investment opportunities with attractive returns. Scammers may also advertise direct sales of cryptocurrencies such as bitcoins, litecoins, and other altcoins, with no transfer of funds once the victims pay. Many of the scams use common techniques, such as creating a sense of urgency or promoting fake legitimacy to trick users. Any offers should be treated with caution, especially if they are unsolicited or appear to be too good to be true.
Getting rugged - Just as crypto and NFT traders use rug pull to mean "scam," they use rugged to mean "scammed." You're most likely to encounter this term on social media and in forums, when users are discussing scams perpetrated by cryptocurrency or NFT creators. Because cryptocurrencies and NFTs are largely unregulated, people dealing in both run the risk of getting rugged. For example, someone who buys an NFT on spec may never actually receive that NFT. Or, someone who buys into a cryptocurrency may be forced to watch as the currency's creator drains its liquidity, making the currency worthless. Both of these scenarios are examples of getting rugged.
Stolen cryptocurrencies - these attacks use a fake website or trick you into downloading malicious software. They use these to obtain log-in information or private keys, which they then use to deposit cryptocurrency into their accounts.
For example, someone recently clicked on an advertisement that downloaded a cryptocurrency-related programme. They attempted to log into their account through the application but were unable to do so. When they checked their wallet, they discovered that all of their bitcoin had been withdrawn, resulting in a loss of $100,000 NZD. It was not retrievable or reimbursable.
In another case, someone clicked a link in a phishing email which appeared to be from the cryptocurrency exchange they use. They discovered their wallet had been emptied after entering their password and username for the exchange and refreshing the website. This resulted in a $10,000 NZD loss.
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