Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.
Getting into cryptocurrency means taking on several risks but getting scammed shouldn’t be one of them. As cryptocurrency is getting noticed and no longer consider a niche, hundreds of cryptocurrency exchanges continue to emerge to facilitate the trading of digital assets. Inevitably, this has causes cryptocurrency exchanges to be the targets for hackers to perform attacks to make a profit. In recent years, we have seen several scam attacks targeting cryptocurrency exchanges and trading platforms, which led to a considerable amount of financial loss worldwide. According to research conducted, a total loss of approximately $882 million was reported due to targeted attacks on cryptocurrency exchanges in 2017 and the first three quarters of 2018. For our valued traders who are reading this post, I would like to tell you 4 types of famous cryptocurrency exchange scams and 4 red flags to watch out for.
4 Types of Crypto Exchange Scams:
Phishing Domain Scam
It is most likely to look like the official exchange platform purposely trick users into typing in their account credentials or downloading malware that the site provides.
Traders will get asked to trade or invest money to promise a high interest rate or rich payback. Instead, the scammer will take the trader’s money and disappear. A similar incident recently took place in South Africa, drawing worldwide attention in the crypto world when 2 South African cryptocurrency exchange owners vanished along with $3.6 billion worth of Bitcoins.
Some exchanges use fake celebrities or impersonate influencers to lure users into their exchanges, promising extraordinary returns on their investments. These scammers also tend to forward users to the official exchanges by using their affiliate codes to earn rewards from the exchanges’ referral programs.
Scammers use addresses similar to official exchange domains to redirect users to adult and gambling sites. Most of the time, thIs type of scam is not targeted only cryptocurrency exchanges. They, however, create these typo-squatting domains with the malicious purpose of attracting users.
4 Red Flags that will help you avoid getting scam:
- If the rate of return is too good to be true
- Constantly force traders to deposit funds or make a more significant investment than needed
- Unsolicited offers or calls with advice on investing or buying cryptocurrencies
- Unusually high registration or withdrawal fees that were not previously disclosed
One of the best ways to avoid getting scammed is to do your research before creating an account and making sure users and researchers establish the platform you have chosen to confirm its legitimacy. Most reputable and legit exchanges should have a constant social media presence such as Twitter and updated blog posts, listing on reputable coin listing websites (CoinGecko, Coincodex, CryptoSlate, Cryptowisser, Coinhills, and more) and verifiable employees. At MCS, we work hard to provide our traders with transparency and high-quality security to protect their assets and confidentiality.
Traders ALWAYS come first on MCS.
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