Crypto scams are running amok to steal your coins — how to protect yourself (2024)

FAQs

How do I protect myself from crypto phishing? ›

Signs of crypto scams include poorly written white papers, excessive marketing, and claims that you'll make a lot of money quickly. You can contact several federal regulatory agencies and your crypto exchange if you suspect that you've been the victim of a crypto scam.

Cryptocurrency payments typically are not reversible. Once you pay with cryptocurrency, you can only get your money back if the person you paid sends it back. But contact the company you used to send the money and tell them it was a fraudulent transaction.

Hardware wallets are universally considered to be the safest way to hold your crypto. They consist of physical devices that store and generate keys without any connection to the Internet and, as such, fall into the classification of cold wallets.

The Consumer Financial Protection Bureau is the regulator responsible for enforcing Regulation E, the 1978 federal rule that requires banks to repay customers if their money is stolen from a consumer account through an electronic payment initiated by another person.

Report the scam to the FTC online, or by phone at 1-877-382-4357 (9:00 AM - 8:00 PM, ET). The FTC accepts complaints about most scams, including these popular ones: Phone calls.

Coinbase carries crime insurance that protects a portion of digital assets held across our storage systems against losses from theft, including cybersecurity breaches.

The good news is - Yes, you can recover your crypto assets using a crypto assets recovery service. It is indeed possible to get your crypto assets back. But it can be a difficult process if you don't have the right information. Here's everything you need to know about recovering your lost/stolen crypto assets.

IP tracing

An IP address can be used to trace the location of the scammer if the IP address is not hidden using a VPN or other means. There are a variety of ways to obtain someone's IP address.

How do I recover my money from a scammer? ›

Report the scam to your bank's fraud team - the first step if for you to report the issue to your bank's fraud team. This will kick off an investigation at the bank. Fraud investigation - your bank has 15 days to investigate and then report back with an outcome on whether it will give you money back.

One of the major risks of scammers having your email address is that they'll use it to hack into your other online accounts. With your email address, they can request password resets, try entering your other passwords that have been leaked online, and even break into your email account.

“Your employees should be considered your first line of defence when it comes to phishing attacks. It's their inbox that the criminals target, so they need to be given adequate training and guidance on what to look out for.”

Key Specs. We chose Trezor as best for security because it comes with the strongest security features and track record of any reviewed hardware wallet. Trezor, like Ledger, is a name synonymous with crypto cold wallet storage.

The most secure method of storing your private keys is to use some form of cryptographic hardware storage device. While they can be expensive, tools like Hardware Storage Modules (HSM), Smart Cards, or USB tokens are great lines of defense against an attack.

Beware of additional scammers who may contact you claiming they can help you get your lost money back. SECURE YOUR FINANCES. Report potentially compromised bank account, credit or debit card information to your financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.

Do Banks Press Charges for Fraud? Yes. Fraud charges of sufficient scale can result in state or federal charges and time in jail.

Where should I go if I get scammed? ›

If you suspect that a message that you received came from a scammer, report it to your cell carrier so they can investigate and block the number. Also, if you don't frequently make international calls, you can ask your carrier to block all international contact.

As soon as you think you've been the victim of a change-of-address scam, follow these steps: Contact your local U.S. Postal Inspection Service office. If you don't know the phone number for the local office, contact the general U.S. Postal Inspection Service at 1-877-876-2455. Press option “4” to report mail fraud.

This means investor/holders would not receive their coins/tokens back from the exchange and likely would receive only a small percentage of the value of the coins/tokens (potentially as of the bankruptcy petition date) from the bankruptcy estate.

If you're a Coinbase user and are currently using the cryptocurrency exchange or the wallet, you've, in effect, agreed that any dispute that arises from here on out is to be settled out of court. You will not be able to pursue any legal claim against Coinbase through a lawsuit.

Representatives from both the SIPC and the FDIC confirmed that neither currently insures crypto assets. That means there's no federal protection for your cryptocurrency.

In 2021, the Department of Justice formed a National Cryptocurrency Enforcement Team to specifically investigate and prosecute the criminal misuse of cryptocurrency. Similarly, the FBI and other federal investigative agencies have established special units to investigate violations involving cryptocurrency.

If you have lost your investment in any virtual currencies including in the stablecoin market, it is possible that your losses are the result of manipulation or other security crime. There may still be time to take legal action, including a potential class-action lawsuit, to recover your crypto assets.

What they want are account numbers, passwords, Social Security numbers, and other confidential information that they can use to loot your checking account or run up bills on your credit cards. Identity thieves can take out loans or obtain credit cards and even driver's licenses in your name.

Can a scammer get into your phone? ›

Malicious links, smishing (text message phishing), and even online dating scams can all give hackers access to your phone — and everything on it.

Identity (ID) theft happens when someone steals your personal information to commit fraud. The identity thief may use your information to apply for credit, file taxes, or get medical services. These acts can damage your credit status, and cost you time and money to restore your good name.

Because a VPN encrypts your data, hackers won't be able to spy on your transactions. It also hides your IP address and prevents persistent tracking, so your physical location doesn't get linked to your blockchain wallet address.

Report The Scam To The Law Enforcement Authorities

Typically, when you report a scam, the government will track down the criminals and get your funds back for you. Hence, don't hesitate to work with your government.

An attacker—or group of attackers—could take over a blockchain by controlling a majority of the blockchain's computational power, called its hashrate. If they own more than 50% of the hashrate, they can introduce an altered blockchain in what is called a 51% attack.

In fact, online banking with a VPN is safer than without it. A virtual private network does NOT compromise your data, protecting it when you bank over public Wi-Fi or through a home network. Generally speaking, encryption is the most important feature a VPN offers.

A VPN encrypts and conceals your entire online traffic. It hides your IP address, location, and all digital activities, including downloads, streaming, and gaming activities. A VPN hides your browsing history from your ISP, websites, online snoopers, and even the government.

It's important to remember that VPNs do not work in the same way as comprehensive anti-virus software. While they will protect your IP and encrypt your internet history, but that is as much as they can do. They won't keep you safe, for instance, if you visit phishing websites or download compromised files.

Once your virtual currency has been stolen it is incredibly unlikely that you will be able to recover it.

Crypto can never be retrieved once it is sent.

Can someone steal my crypto with my wallet address? ›

The only way someone could access your funds would be if they had access to your Coinbase account, or in the case of a non-hosted wallet, your private key. Note: It is not possible to delete crypto addresses from your Coinbase account.

According to blockchain analysis company Chainalysis, 0.15% of known cryptocurrency transactions conducted in 2021 were involved in illicit activities like cybercrime, money laundering and terrorism financing, representing a total of $14 billion.

With sophisticated attacks from expert hackers such as power glitching, side-channel attacks, and software hacks like attacking a Hardware Security Module, hardware wallets can be vulnerable if they don't have the right fortification.