How do you recognise and prevent crypto scams, a growing market? We reached out to a contact at the Cybercrime Squad at NSW Police and they pointed us to the following resources. We’ve also included an extract from the Moneysmart webpage here, because we felt it looked like an informative read.
How crypto scams work
There are three main types of crypto scams:
- investing in a fake crypto exchange, website or app
- fake crypto products or jobs trading crypto
- using crypto to pay scammers
Fake trading platforms or fake crypto wallets
These may mimic a real online exchange or wallet, but can work in different ways:
- Phishing webpages – These capture the details you enter, so the scammer can log in later and steal your crypto. They may also send links via phishing emails or pretend to be official customer support in direct messages.
- Investment opportunity – You use their platform to trade or mine crypto. Initially, your crypto goes up in value, so you invest more. But then they lock you out, close the site and disappear with your money.
Fake crypto trading apps
Scammers create fake crypto trading apps to steal your money. The giveaway is usually that they ask you to download the app from their website. They may appear on legitimate platforms like Google Play and Apple, but are usually promptly removed. If you find one on an app store, check for overly positive reviews and be cautious.
All the links, including the above extract, can be found on our FRAUD page.
We have also taken the opportunity to review the information/links included on the FRAUD and the SCAMS pages due to an overlap, with some links moving between the two. Plus we now have listed the Australian Signals Directorate, where it used to be the Australian Cyber Security Centre (which in turn had replaced the old ACORN).
WatchOut! 