As cryptocurrency becomes more popular, it becomes a more prominent target of online attacks. Dan Schatt, CEO of Earnity, a social-first crypto platform and marketplace, and other fintech veterans vow to keep crypto as secure and safe as possible. Below are some of these online security threats.
Phishing scams
Phishing is a method of online fraud that involves tricking victims into giving up their personal or financial information. Hackers typically do this by creating fake websites or emails that look identical to legitimate ones. They will then send these fake emails or links to potential victims, hoping that they will input their sensitive information into the fake site.
Malware attacks
Malware is a type of malicious software that can be used to infect your computer and steal your personal or financial information. Cryptocurrency-related malware is becoming increasingly common, as hackers target crypto users in an attempt to steal their coins.
Hacking exchanges
Hackers frequently target cryptocurrency exchanges as they offer a large pool of potential victims and often have weak security measures. Hackers will typically try to access an exchange’s user database to steal its users’ personal and financial information.
Ponzi schemes
Ponzi schemes are fraudulent schemes that promise high rates of profit with little to no risk. These schemes typically involve promising buyers unrealistic earnings while using the money from new collectors to pay off the old ones. Eventually, the scheme will collapse under its own weight, leaving many of those who put their money out of pocket.
Pyramid schemes
Pyramid schemes are similar to Ponzi schemes, but instead of promising high-profit rates, they focus on recruiting new members. Participants in a pyramid scheme will typically make money by recruiting new members rather than through any actual product or service.
While these are some of the most common online threats to the safety of your crypto collection, it is important to remember that criminals are constantly finding new ways to target unsuspecting victims. Dan Schatt of Earnity mentions that it is important to be vigilant and take steps to protect yourself from these threats. Some basic security measures include using a strong password, enabling two-factor authentication, and only storing your coins in a secure wallet.