Learn how to protect yourself from common crypto scams
As cryptocurrencies become increasingly popular, scammers have found innovative ways to trick people out of their funds. At BudgetCoinz, we believe in the safe, reliable purchase of cryptocurrency, so we want our customers to know about the most common scams to look out for. Being aware and cautious is the best way to protect yourself.
There are many ways that paying with cryptocurrency is different from paying with a credit card or other traditional payment methods.
Cryptocurrency payments typically are not reversible. Once you pay with a cryptocurrency, you can usually only get your money back if the person you paid returns it. Before paying with cryptocurrency, verify who you're dealing with and what you're getting for your money.
Know the details about your transaction with the for-party. You buy like almost cryptocurrencies like address; but what exactly the for-party is selling for. Otherwise, it could be a scam. Read the contract details and the promises the company is making.
If something goes wrong with your purchase and you paid with cryptocurrency, you usually don't have the refund protections you would have if you paid with a credit card. If you suspect fraud, report it to the exchange you used to make the cryptocurrency transaction, the FTC, and the FBI's Internet Crime Complaint Center.
Some scammers send QR codes that link to fake payment sites. If someone sends you a QR code, be sure to check where it leads before you make a payment. If the QR code takes you to a website, check the URL to make sure it's legitimate before making any payment.
Follow these guidelines to protect yourself when using cryptocurrency
Do thorough research before sending your crypto to an exchange or making a payment. Check reviews and only use established, reputable services. If a deal seems too good to be true, it probably is.
Never share your private keys or recovery phrases with anyone. Legitimate cryptocurrency services will never ask for these. Use strong passwords and enable two-factor authentication (2FA) whenever possible.
Always double-check cryptocurrency addresses before sending funds. Scammers may try to intercept transactions by providing slightly modified addresses. Make sure the entire address matches exactly.
Promises of quick, risk-free returns, "inside tips" or "sure" high-return rates on crypto investments are classic warning signs. In the volatile crypto market, no one can guarantee profits or returns.
Scammers often claim to have special systems or insider knowledge. They promise to "grow your investment" - but they'll take the cryptocurrency you send and disappear instead.
Be extremely wary of investment advice from social media, especially if it appears to come from celebrities. Scammers often create fake accounts impersonating well-known figures to promote cryptocurrency investment schemes.
Fraudsters artificially inflate the price of a cryptocurrency by spreading false statements, then sell their holdings after the price rises, causing others to lose money when the price falls.
Many scammers impersonate legitimate businesses or government agencies to trick people into sending cryptocurrency:
These include schemes that pretend they're from Amazon, Microsoft, Apple, or another well-known company. They'll say there's a problem with your account or that there's suspicious activity or unauthorized purchases on your account. They're trying to get your money.
They might advertise a way to make money with cryptocurrency or offer a job that requires cryptocurrency investments. Always verify job opportunities through official channels and be skeptical of positions requiring upfront payments.
They might claim to be from a government agency, like the Social Security Administration, IRS, or FBI. They'll say your Social Security number was compromised, there's a warrant for your arrest, or your tax payment didn't go through.
They might even send an email that looks like they're from a local utility company, saying your bill is overdue. Remember that legitimate organizations rarely if ever require cryptocurrency as payment for bills or fees.
Blackmail scams are when a scammer threatens to reveal sensitive information about you unless you send them cryptocurrency payments:
If you receive a blackmail email, do not respond or pay the ransom. Report it to the Internet Crime Complaint Center and change your passwords.
When you use BudgetCoinz ATMs, you're using a legitimate, regulated service with customer support. Our ATMs provide a safe and transparent way to buy and sell cryptocurrency.