THE FTC warned this week that a new crypto scam could be putting people’s investments and bank accounts at risk.
According to the agency, the scam, which they called a “new spin,” involves a fraudster, a QR code, and a trip to a cryptocurrency ATM.
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Basically, the scam goes like this: A fraudster, who might be posing as a government official, law enforcement official, prize promoter, or local utility company official, will call an unsuspecting victim up.
Then the scammer will ask for some sort of payment from their victim’s bank, investments, or retirement accounts, before nudging them to a store with a cryptocurrency ATM.
Once the victim is there, the scammer will direct them to insert money into the ATM and buy cryptocurrency.
The fraudster will then send the victim a QR code with their address embedded in it, and once the victim buys the cryptocurrency and scans the code, the money immediately gets transferred to the scammer.
“Here’s the main thing to know: Nobody from the government, law enforcement, utility company, or prize promoter will ever tell you to pay them with cryptocurrency. If someone does, it’s a scam, every time,” said Cristina Miranda with the FTC’s division of consumer and business education in the statemen
The FTC added that any form of communication — be it via Tweet, text, call, email, or DM — that asks you to pay someone you don’t know in advance for something is a scam.
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Cryptocurrency red flags
There are several red flags you can watch out for to help keep your crypto investments safe.
First, it’s important to be vigilant of obvious typographical errors in emails, on social media posts, and during any communication.
Another is to be wary of promises to multiply your money or anyone claiming to be a celebrity.
It is also best to avoid signing anything that locks you into holding crypto without being able to sell.
Protect your crypto
You can also make use of digital security tools to help protect your cryptocurrency.
Such tools include a ‘hot wallet’ (which stores your crypto online) and a ‘cold wallet’ (which is a piece of hardware that stores your crypto offline).
Hot wallets are quite secure but more prone to hacking; cold wallets are considered the most secure, but if you forget your password, you risk losing access to your crypto forever.
Crypto investors can also implement two-factor authentication for whatever platform they use to store their currency, as well as purchase private insurance policies in case of theft or hacking.
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