The rapid growth and widespread adoption of cryptocurrencies have led to new opportunities for crypto scammers to take advantage of unsuspecting investors and novice traders.

Fraudsters were able to steal over $14 billion in 2021, and with the growing popularity of digital assets, this figure is likely to skyrocket in 2022.

As a community-oriented trading platform, PointPay cares about its users and always asks them to stay alert for potential crypto scams. Do not forget that in any transaction, there’s no way to retrieve your crypto back once you’ve sent it.

Unfortunately, cryptocurrency scams come in all shapes and sizes. In this article, PointPay experts want to highlight the five best ways to protect yourself and avoid falling victims to crypto scams. Let's start!

Avoiding crypto scams with PointPay

Even though cryptocurrency scams are increasing, you can take proactive steps to avoid being trapped in one. Here are 5 of the ways to avoid crypto scams:

Protect your digital wallet

To invest in cryptos and make transactions, you will need a crypto wallet along with private keys to access it. If a website or customer support asks you to share your private keys, login, or password, it is most likely a crypto scam. Do not share your private keys with anyone. What else can be done to protect your wallet? Here are some more tips from PointPay:

  • Protect your smartphone with a strong password, fingerprint, or other biometric authentication;
  • Don’t use public wifi to access sensitive data;
  • Avoid clicking random links in texts or emails;
  • Enable your smartphone’s security features and always keep them updated;
  • Always stay suspicious and vigilant.

Choose tokens with an established history

Some investors and traders like getting in early. It means finding a token that hasn't exploded in value yet and might exponentially increase your investment in the future.

However, without an established history, separating a cryptocurrency scam from a potentially successful crypto project can be rather difficult. But what should be done?

First, try to find tokens that have undergone several periods of volatility. It might mean developers and founders behind the project are not looking for a 'pump and dump' or other fraudulent schemes. However, the token history does not guarantee you won't get scammed. Don't forget that you always need to dig deeper and do your thorough research.

Use Multi-Factor Authentication

Even though using multi-factor authentication on your crypto wallet is not a sure-fire solution, it might help you a lot. It will definitely give you a fighting chance against crypto scams.

PointPay: How to enable 2FA verification via the Google Authenticator app

  1. First, please refer to your Google Play / App Store and download the Google Authenticator app.
  2. After that, navigate to your PointPay settings section and click on ‘2FA via authentication app.’
  3. Make sure to follow each step to complete the verification:
  • Open your Google Authenticator app and scan the QR code. You will see a new line in your app, where the verification codes are generated automatically.
  • Please remember to save the ‘Setup key.’ It will be required to disable 2FA verification in case you lose access to your device.
  • Enter a 6-digit code from your app and click on the ‘Submit’ button.
  • You’re all set! From now on, each time you enter the credentials, you will be required to pass 2FA verification first.

Never share your private keys and other sensitive data

Even if you are absolutely sure you are interacting with a trusted party, such as a wallet or a crypto exchange, you should be especially careful and prudent. Refrain from sharing confidential information. If you need to know this information to complete a transaction or access your account or wallet, please do not share it with anyone. Also, remember that PointPay will never ask you for passwords, keys, and other personal details.

Double-check URLs and domain names

Always double-check the website's domain name and social media handles. Do everything possible to ensure you are not about to send your crypto or sensitive data to a scammer who is falsely posing as a legitimate individual or business. Verify there are no apparent misspellings, typos, extra signs, or numbers. If possible, check if it is a verified account. It will help you a lot if you send a message to the official channel on Telegram or Twitter to ask if the account is legitimate. It is always better to report if you notice anything suspicious, like a fake copycat account. This might help other users stay safe and not fall victims to a cryptocurrency scam.

Final thoughts

Some common cryptocurrency scams that involve crypto transfers are irreversible because of the nature of blockchain technology. Unfortunately, it means that users will not be able to get their money back. Furthermore, it will be almost impossible to track down the owner of the scammer's wallet.

However, staying cautious, being active in social media, and reporting crypto scams can help protect others. It might also make it more difficult for fraudsters to strike again in the future.

Always stay alert and follow the PointPay tips highlighted in this article. This is how you can stay steps ahead of scammers and keep your crypto safe.

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