Save
Crypto investors are the perfect mark for more sophisticated scammers
If you’re looking at adding cryptocurrencies like bitcoin to your portfolio, you’ll want to do so without falling victim to a scam.
Crypto investors are the perfect mark for more sophisticated scammers
If you’re looking at adding cryptocurrencies like bitcoin to your portfolio, you’ll want to do so without falling victim to a scam.
As more and more first time investors have sought to act on the hype around bitcoin, scammer activity when it comes to cryptocurrencies has also grown.
Speaking to nestegg, Kaspersky ANZ general manager Margrith Appleby said that one of the most distinctive things about crypto scammers is the attention to detail.
“Attackers know people who are investing or are interested in crypto are often quite tech-savvy; therefore, they make their techniques more complex than you would find in other scams,” she explained.
Ms Appleby said that many of these synthetic crypto exchanges rely on real data, copied over from more legitimate trading sites.
The idea with these fake exchanges is to take advantage of investors who are keen to get their foot in the door when it comes to cryptocurrencies but aren’t necessarily familiar enough to tell good, bad and dodgy exchanges apart.
“Users are allegedly given a coupon for replenishing an account on a crypto exchange; however, to use it, they must carry out a verification payment of usually no more than 0.005 bitcoin, which becomes the cybercriminals’ profit,” Ms Appleby explained.
Another common tactic employed by scammers looking to get one over on first-time crypto investors involves phishing emails.
However, Ms Appleby said that these crypto phishing scams tended to look a lot more credible than the sort you might be familiar with.
“There are few language errors, the list of exchanges includes reputable names, and they often include believable T&Cs,” she said.
One recent example of this in practice saw Luno users targeted via an email saying that an incoming payment had been “placed on hold due to errors”, with potential victims instructed to click on a link to resolve the issue.
“This link directed the victims to a fake Luno login page, where the scammers could steal their login credentials and therefore access their cryptocurrency,” Mr Appleby said.
Another vector of attack that’s becoming increasingly popular among crypto scammers is Discord.
Ms Appleby noted that Discord was originally created for gamers but has become popular among cryptocurrency fans.
“Scammers seek out victims on Discord cryptocurrency servers and send private messages that appear to come from an up-and-coming trading platform giving away cryptocurrency,” she said.
To avoid falling victim to any of the above crypto scams, Ms Appleby recommends investors remain wary of any offers of free cryptocurrency that they come across and thoroughly research any cryptocurrency exchanges before trusting it with your details.
For those looking to take extra precautions when it comes to securing their crypto investments, she recommends using a secure communication channel for all such transactions.
“If you access a platform’s website using public Wi-Fi, criminals can intercept transaction details. It is always best to conduct all crypto trading over an encrypted VPN channel, which adds an extra layer of security,” she said.
RELATED ARTICLES
About the author
About the author
Scams
ANZ warns customers of potential scam surge following RBA rate cut
ANZ has issued a warning to customers about a potential rise in scam activity following the Reserve Bank of Australia's decision to lower the cash rate target by 25 basis points. Read more
Scams
Financial Basics Foundation warns of e-commerce ‘gamification’ targeting Gen Z shoppers
The Financial Basics Foundation has raised concerns over the impact of increasingly sophisticated digital marketing tactics on young consumers during Financial Literacy Month, highlighting the need ...Read more
Scams
ANZ warns Australians of scam risks following Ex-Tropical Cyclone Alfred
ANZ is urging customers and the broader community to remain vigilant against scammers impersonating trusted organisations in the wake of Ex-Tropical Cyclone Alfred. Read more
Scams
Navigating online money-making: Scams to avoid
In an era where the click of a button can lead to monetary gain, the internet has become a bustling marketplace for those looking to supplement their income. However, where there is opportunity, there ...Read more
Scams
Cyber criminals using interest rates as bait to trick customers
If you’ve ever found yourself on the receiving end of a suspicious phone call, e-mail or text message claiming to be from a major bank and demanding your details, you’re not alone – and experts are ...Read more
Scams
ATO cracks down on $850m GST fake business fraud
A nationwide crackdown on incidents of fraud involving the creation of fake businesses to scam GST refunds from the federal government has led to the Australian Taxation Office (ATO) firmly warning ...Read more
Scams
Crackdown sees more than half a billion scam calls blocked
Initiatives by telcos and the ACMA have also led to a 95 per cent reduction in reports of mobile porting fraud. Read more
Scams
Be wary when applying for a TFN or ABN, ATO warns
The tax office said that scams involving TFN and ABN applications are on the rise in the lead up to tax time. Read more
Scams
ANZ warns customers of potential scam surge following RBA rate cut
ANZ has issued a warning to customers about a potential rise in scam activity following the Reserve Bank of Australia's decision to lower the cash rate target by 25 basis points. Read more
Scams
Financial Basics Foundation warns of e-commerce ‘gamification’ targeting Gen Z shoppers
The Financial Basics Foundation has raised concerns over the impact of increasingly sophisticated digital marketing tactics on young consumers during Financial Literacy Month, highlighting the need ...Read more
Scams
ANZ warns Australians of scam risks following Ex-Tropical Cyclone Alfred
ANZ is urging customers and the broader community to remain vigilant against scammers impersonating trusted organisations in the wake of Ex-Tropical Cyclone Alfred. Read more
Scams
Navigating online money-making: Scams to avoid
In an era where the click of a button can lead to monetary gain, the internet has become a bustling marketplace for those looking to supplement their income. However, where there is opportunity, there ...Read more
Scams
Cyber criminals using interest rates as bait to trick customers
If you’ve ever found yourself on the receiving end of a suspicious phone call, e-mail or text message claiming to be from a major bank and demanding your details, you’re not alone – and experts are ...Read more
Scams
ATO cracks down on $850m GST fake business fraud
A nationwide crackdown on incidents of fraud involving the creation of fake businesses to scam GST refunds from the federal government has led to the Australian Taxation Office (ATO) firmly warning ...Read more
Scams
Crackdown sees more than half a billion scam calls blocked
Initiatives by telcos and the ACMA have also led to a 95 per cent reduction in reports of mobile porting fraud. Read more
Scams
Be wary when applying for a TFN or ABN, ATO warns
The tax office said that scams involving TFN and ABN applications are on the rise in the lead up to tax time. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- ACE25
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Broker Daily Business Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Relative Return
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.