Watch out for cryptocurrency scams
Published: 24/01/2025
Cryptocurrency (or crypto) is a digital currency that uses encryption technology to enable secure online transactions, without relying on a central authority like a bank. Crypto is now a popular way to invest and trade online, however it can pose significant risks, particularly in the form of scams.
Why crypto can be risky
Crypto doesn't come with the same protections or refunds that regular banking does. This makes it easier for scammers to target people who aren’t aware of how crypto works.
Common scams to watch out for
Fraudsters have plenty of tricks up their sleeves. Here’s what to look out for:
- Fake influencers. Scammers pose as wealthy influencers or business gurus on social media, promoting “amazing” investment deals.
- Unrealistic promises. If someone guarantees high returns, be sceptical. Crypto is unpredictable, and no one can promise you’ll always make money.
- Pressure to act fast. Urgency is a common tactic. If someone says you need to act immediately, it’s likely a scam.
- Fake sites and apps. Scammers create realistic-looking websites or portfolios designed to steal your money.
- Requests for access. Be wary if anyone asks for your account info, such as your wallet seed phrase, or remote access to your devices.
How to protect yourself
Stay safe with these simple steps:
- Research first. Understand how crypto works and the risks involved before investing.
- Stay in control. Don’t let anyone else set up wallets or manage your investments.
- Avoid remote access. Never let someone control your devices or download software for you.
- Check sources. Ignore endorsements from supposed influencers or celebs — scammers often fake these.
- Take your time. Talk to someone you trust before making big investment decisions.
- Don’t invest more than you can afford to lose, there are no refunds or investment protection unlike with “traditional” financial products.
Red flags
- Being asked to lie to your bank about a payment.
- Getting random investment advice online.
- Feeling pressured to make repeated payments without proof of returns.
Crypto can be exciting, but staying safe is essential. Be cautious, take your time, and don’t let scammers ruin your experience!
If you believe you have fallen victim to a scam, please report it to the Service Desk via support@ntu.ac.uk.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research and seek qualified financial advice.