Beware of These Online Platforms

There are various patterns and typologies that can be observed among fraudsters and cyber attackers. It’s important to understand which specific platforms may leave you vulnerable to attacks. The U.S. Treasury Department’s Financial Crime Enforcement Network has observed and documented unregistered entities being exploited or wittingly allowing their platforms to be utilized by criminals in the United States and abroad to further illicit activity. Such platforms include:

Darknet Marketplaces

These marketplaces often offer illicit goods and services, specifying virtual currency as a method of payment, sometimes exclusively.

Unregistered Peer-to-Peer (P2P) Exchangers

These are individuals or entities offering to exchange fiat currencies for virtual currencies or one virtual currency for another.

Unregistered Foreign-Located MSBs

Similar to P2P exchangers, these entities offer to exchange fiat and convertible virtual currencies (CVCs).

CVC Kiosks (Bitcoin ATMs or Crypto ATMs)

These ATM-like devices or electronic terminals allow users to exchange cash and virtual currency. CVC kiosks generally facilitate money transmission between a CVC exchange and a customer’s wallet or operate as a CVC exchange themselves.

For a complete and detailed list, visit FinCEN.

Helpful Tips to Avoid Fraud

Here are a few helpful tips to assist individuals in avoiding any possible scams. For the complete list of tips and tricks, visit FinCEN, Europol, EBF, and FTC:

• Never give anyone your passwords to personal accounts.
• Don’t click on anything in an unsolicited email or text message asking you to update or verify account information.
• Set up two-factor (or multi-factor) authentication on any account that allows it and never disable it.
• Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
• Shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software.
• Be careful with what information you share online. By listing pet names, schools, or birthdays, it makes it easy for scammers to guess your password or answer your security questions.
• Be cautious with email attachments and downloads.
• Purchase merchandise from reputable dealers or establishments.
• Purchase merchandise directly from the individual or company that holds the trademark, copyright, or patent.
• Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action.
• Whenever possible, purchase items online using your credit card, as you can often dispute the charges if something goes wrong.
• Check with the Better Business Bureau in the seller’s area.
• Memorize personal identification numbers (such as your ATM card PIN) and online passwords.
• Report lost or stolen credit, debit, or ATM cards immediately.
• Report any questionable charges to your card issuer or financial institution.
• Check any wallet address you intend to withdraw virtual currency to, as completed transactions may be irreversible.

Avoid Crypto Investment Scams

The Bull Run, which sees a significant rise in the value of Bitcoins, attracts more people into the crypto game. However, this also introduces numerous investment scams targeting newbies. Here are some common scams to avoid:

ICO (Initial Coin Offering)

ICO is a popular way to finance new projects using tokens. However, it poses risks due to the lack of legal regulations. To avoid these scams, research the company, check forums, read the white paper, and perform a Google search with the company name followed by "scams".

Cloud Mining

Cloud mining allows companies to rent server space to users. Transparency is crucial. Avoid companies promising unrealistic profits and research standard market fees and returns.

Multi-Level Marketing Companies

MLM companies operate similarly to network marketing, promising high returns based on new recruits. Verify company credentials and be wary of extraordinary profit claims.

For more detailed information or to report scams, contact us at [email protected].

How to Avoid Unregulated Broker Scams

Beware of unsolicited messages from individuals presenting themselves as crypto brokers. They often promise significant returns if you fund your account with cryptocurrencies. Avoid trusting:

• Unsolicited messages via phone calls, emails, DMs, or SMS.
• People pushing for immediate investments.
• Individuals overly convincing about their legitimacy.
• Promotional offers, discounts, and rewards that seem too good to be true.
• Requests for unclear taxes, fees, and commissions to withdraw money.
• Requests to transfer your crypto into their account.

Use common sense and verify the legitimacy of brokers through reviews on platforms like Trustpilot. Avoid any broker who pressures you to act quickly or offers unrealistic returns.

How to Avoid Computer Malware

Cyber security is crucial as cyber attacks become more frequent and sophisticated. Malware is designed to damage or steal information. Here are common malware threats:

Copy and Paste Malware

This malware changes the recipient cryptocurrency address to the hacker’s address. Always double-check the address you copy and paste before transferring funds.

Ransomware

This malware locks your files until you pay a ransom in cryptocurrency. Be cautious with downloads and email links, and never click on links from unknown senders.

To report malware attacks, contact us at [email protected].

Simple Ways to Avoid Crypto Giveaway Scams

Scammers impersonate prominent figures on social media, promising cryptocurrency giveaways. To protect yourself:

• Don't trust offers of easy money or giveaways requiring you to send cryptocurrency first.
• Be skeptical of individuals pushing you to act quickly.
• Stay updated on the latest scams through forums, blogs, and industry news.

Report scams to us at [email protected].

Avoid Bitcoin Purchase Scams

Bitcoin purchase scams often involve expensive items offered at very appealing prices. Here are signs to watch out for:

• If the price is too good to be true, it probably is.
• The website URL starts with "http" instead of "https".
• The padlock icon is missing from the web browser.
• The seller wants to move communication away from the official platform.
• Check for tiny spelling mistakes in the email address of the sender.
• Avoid email-based fund exchanges unless verified by official platforms.

To protect yourself, slow down your excitement and verify the legitimacy of the seller. For more information, contact us at [email protected].