Cryptocurrency

Everything You Should Know About Crypto Giveaway Scams

When discussing the biggest innovations in the financial space over the years, specifically after the advancement of technology, we cannot overlook cryptocurrencies. The out-of-the-box concept that knocked our doors in 2009 was an untiring attempt of a group of people under the pseudonym of Satoshi Nakamoto, who disclosed the idea of Bitcoin, the world’s first cryptocurrency. Ever since then, there is no looking back for these digital assets, which in no time expanded their business in heaps and bounds.

Trading in Bitcoin and other cryptos has become one of the most lucrative forms of trading today. Most of the traders use automated trading softwares or trading robots like Bitcoin Era to conduct profitable trading. To start trading in Bitcoin and other cryptocurrencies, you can register with bitcoinerapro.com and let its accurate trading decisions rake in huge profits for you.

Before diving into cryptocurrencies, it is necessary that you learn about all the pros and cons of the crypto business beforehand. As cryptocurrency-related activities started gaining momentum, the industry emerged as a potential ground for scammers and fraudsters. Pooling knowledge about crypto scams such as Ponzi schemes, fraud ICOs, crypto giveaway scams, etc. can help you in remaining alert as and when sensing financial danger. This article will give you an insight into the crypto giveaway scams, which have become quite common in the present scenarios and have given some of the biggest jolts to the crypto sector.

What Is A Crypto Giveaway Scam?

We often see crypto firms announcing giveaways to their customers to reward them for their loyalty and to expand their customer base. In giveaways, the organizers plan to distribute or airdrop a certain value of crypto assets or tokens to the participants who turn out to be the winners of the giveaway contest. These giveaways have now become schematically designed scams in which the fraudster tricks the investors in a well-planned manner.

The imposters claim that a cryptocurrency exchange or a renowned personality is organizing a giveaway event for crypto investors on a global level. However, to participate in the event, the investors are forced to send a certain volume of crypto assets to the prescribed address for verification of their wallet address where they would receive the giveaway reward. If the investor agrees to transfer the demanded asset, the scammer’s plan gets successful, and he makes a good profit.

How To Combat Crypto Giveaway Scams?

  1. Always rely on trusted exchanges and official handles for free crypto giveaway events. Read all the instructions carefully before sharing any kind of information with the organizers.
  2. Do not get lured by the promises made by the projects making an entry into the crypto space without collecting complete information.
  3. Always remember that a strong password can do add an extra layer of security to your crypto wallets and crypto-assets. Thus, make use of long and strong alphanumeric passwords, which are hard to crack for the outsiders but easy to be remembered.
  4. Never share your wallet information. Use 2-factor authentication on your wallets and storage tools.
  5. Giveaway scams are often channelized through emails. One can use VPNs with an email filtering feature to avoid flooding of spam mails. This helps in keeping phishing activities in control by blacklisting them.
  6. Do not share any information in emails or telephonic conversations with the giveaway organizers.

Important Example of Giveaway Scam 

In a recent incident, leading the crypto platform, Ripple triggered legal proceedings against Alphabet Inc. owned video-sharing portal, YouTube. In its official complaint, Ripple stated that scammers impersonated as Ripple and its CEO Brad Garlinghouse on YouTube to convince users to send thousands of dollars’ worth of XRP in their account fraudulently. The victims were promised to be paid 5 million XRP, amounting to nearly $1 million as part of the giveaway from Ripple.

The blockchain firm sued YouTube for acting incompetently towards the protection of the general public from cryptocurrency giveaway scams that are channelized by placing fake social media profiles on the network. These profiles are used by the scammers to fool the investors and extracting money from them conveniently.

With an increase in crypto scams, making an investment decision has become quite difficult for people at large.

Conclusion

Crypto scams have been aggravatedly effective in the recent times. Studded with lucrative reward offerings, these fraud schemes get successful more than often in collecting hefty amounts from innocent investors who fail to track the real motives. This article is an attempt to make people aware of giveaway scams. Our aim is not to discourage you as we know that giveaways are a good source of extra income. All we advise you is to act intelligently so that scammers can never trick you and extract your hard-earned money.

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Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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