The FTC warns against a new crypto scam. Here’s how to protect your investments. A new cryptocurrency fraud has been identified by the Federal Trade Commission. And users should be on the lookout for it, according to an alert released earlier this week.
An official news release issued by the FTC. Details the scam’s methods of operation. An impostor, a QR code, and a visit to an establishment. Where money can be sent through a bitcoin ATM. Con artists frequently appear as representatives of government agencies. Law enforcement authorities, reward promoters, and local utility providers. Among other things, in order to defraud their victims of their money.
As a result of all of this, you will never be instructed to pay anyone or anything using bitcoin. This includes the government as well as law enforcement authorities. Utility providers and incentive promoters. In her opinion, Cristina Miranda of the Federal Trade Commission’s office of consumer. And business education feels that in the vast majority of cases. When someone does this, it is an elaborate deception to swindle them, the FTC.
Even if the Federal Trade Commission’s warning comes. At a time when cryptocurrency-related crimes are on the rise in the United States. It is well timed. As predicted by the blockchain data firm Chainalysis. Scammers would have stolen $14 billion in cryptocurrencies in just one year. By the end of 2021 if the current trend is followed through to the end of 2021. A study conducted by University of California researchers predicts. That scammers will take nearly twice as much money in 2020 as they did in 2015.
Protect Your Digital Wallet
Another strategy to protect your cryptocurrency is to practice excellent digital security habits. Just like you would when dealing with significant sums of cash. By storing them in a safe or FDIC-insured savings account, as described above.
Experts believe that small-scale investors with a few hundred dollars in cryptocurrency. Will be fine if they keep it on a mainstream exchange like Coinbase for the time being. However, if you have a considerable quantity of cryptocurrency. You may want to consider incorporating a crypto wallet for additional security.
Hot wallets and cold wallets are the two types of cryptocurrency wallets available.
When storing cryptocurrency online, hot wallets employed. Even if they are secure, they are more vulnerable to hacking than cold storage. Which is when cryptocurrency stored offline on a physical piece of hardware. Cold storage can thought of as akin to a digital safe in the shape of a USB flash drive. Although it is more secure, if you forget your password or misplace your device. You could lose access to your money for good, forever.
Because cryptocurrency housed in hot wallets not insured by the Federal Deposit Insurance Corporation. You’ll want to be sure that whichever platform. Or wallet you use to store your cryptocurrency has adequate security features. Such as the following:
Two-factor authentication (also known as two-factor authentication).
Having a portion of its inventory stored in its own cold storage.
Protection provided by private insurance policies in the event of theft or hacking (separate from FDIC insurance).
Keep Track of Your Wallet Keys
Because you only receive one unique key to access your wallet. You must especially vigilant to ensure that it does not get lost or stolen. While you are out and about. Do not disclose your private key to anyone. This is similar to not divulging your Social Security number or your debit card PIN to a stranger.
Maintaining strong passwords that you update on a regular basis. As well as refraining from using the same password for several accounts. Will make you less exposed to breaches and fraud.