With crypto there are several ways losses can occur. In an earlier blog I mentioned losses with bad trades. Losses can also occur because of bad protection and dishonest platforms. In this blog I offer tips how to cope with those losses.
Loss after telegram scam
Because there is a bullmarket with crypto a lot of promosing legitimatebprojects have been developed. However the change of scam projects is also rising rapidly. People familiar with telegram might have seen members who seem to be very helpful. It is very likely they try to scam clueless users. Either they ask you to send crypto to them first and they send you double back. Or they pretend to be an admin and ask for private keys and passwords to bypass know your customer. The only thing you end up with is losing your funds. To avoid loss never give your official ID information, password and private key to any unknown user on telegram. Only provide ID if you are required for the Know Your Customer procedure on an official website. Never give your ID somewhere else. Not only do you risk loss of funds you also risk being victim of identity fraud. Best thing to do is to block those users on telegram and don’t stare blind on promising high yields. In case someone ignores warning signs and loses funds I suggest delete that wallet and renew your wallet in order to get a new private key and pass phrase and renew password. Luckily most people know to never give private key away the only thing you get from it is total loss of your funds.
Loss after phishing
Second way of unexpected loss of funds is phising. If a person opens a link in an email instead of typing in the official website it’s likely that the password will be captured. The next thing the person noticed after logging in to official website funds are stolen. Three things can be done to prevent loss even it password is captured. 1 enable 2 Factor Authentification. This way they need another code to prevent withdrawal. 2 Next to 2FA enable mail verification code. This is an extra layer to prevent withdrawal. 3 enable anti phishing code on official exchanges. On platforms like binance it is possible to enable anti phishing code when you receive emails. If someone gets a scam mail this code is missing. In case someone is scammed and ignored the steps above and filled in password a few steps can be done. 1 change password directly 2 contact official exchange immediately and explain you didn’t make the transactions. Best is not ro open links in emails and not to give any passwords to avoid losses.
Loss after website suddenly disappeared
Since the crypto world is starting to bloom like nevee before many crypto businesses are seeing light but unfortunately also illegitimate websites are being launched. Those website offer decent yields and appear to be paying first, but suddenly as people invest more and more the website goes offline and people will lose access to invested funds and some people will lose massive amounts. Best thing to do here to prevent losses is to do online research about this website. The following checIist can be used:
- What are the user experiences?
- How long does it exist?
- Do they pay back after funds are withdrawn?
- Does support react fast ?
- Can the team be reached on social media.
- Do you need to pay money first before you can invest?
- Is the information on website actual and reliable?
Best is always to invest carefully with funds you can afford to lose. Disappearing websites cannot always be foreseen and best is to have a personal plan ready in case you encounter websites.
My conclusions
Sudden losses due to scams are really a sour experience but most scams can be prevented if someone takes proper steps. People should be careful giving sensitive personal information to strangers on telegram and opening links in emails. Be careful with new websites promising high yields. Losses can be prevented and minimized if a website is double checked. As always do your own research before you make investment decisions