Sadly, even the relatively youthful crypto industry has found room for scammers. From time to time, we read news about hacks, money laundering, and other unpleasant things connected to the crypto space. In today’s post, we’ll go over some of the most frequently encountered crimes in the Cryptosphere and we’ll tell you how you can stay on the safe side. Let’s dive in…
While it’s no simple task to hack a crypto exchange, some have fallen victim to hacks. Due to large operational volumes, exchanges are a prize-target for criminals. Fortunately, only a few of them have succeeded. Most often, hackers work in teams, and according to statistics, most of the hacks have been performed by just two criminal groups.
As for wallets, the most common reason for having hot wallets hacked is their relative vulnerability. One of the most popular ways to hack a hot wallet is to infect the owner’s computer with a virus.
Here’s what you can do to protect your portfolio, wherever it is…
At the present time, ICO’s are not regulated, and, according to various accounts, at least 50% of the initiated ICO’s are a scam. Such companies are created just to collect contributors’ money and disappear. Due to lack of regulation, scam ICO owners (often with fictional identities) are not held legally responsible, therefore for contributors, there is almost no chance to get their hard-earned money back. Not good.
Phishing is another form of ICO scam. Phishing is when a clone of a real ICO site is created and this fake site records the credentials that users enter, as they assume they’re on the real site. Again, check that URL in the address bar. If it doesn’t look right, it probably isn’t. Get out of there!
How to avoid mistakes when contributing to an ICO?
The crypto industry is still a little marred by money laundering scandals that plagued its earlier years. Exchanges with weak AML (Anti-Money Laundering) and KYC policies should not be trusted, simply because they’re not taking the appropriate measures to limit nefarious actors from joining the user-base.
We at CoinMetro take AML and KYC checks extremely seriously. There’s nothing more important to us than the safety and security of our clients and their funds. We’re strict in our policies because we know that they work. All of our users are required to send us documents proving that they are who they claim to be. These documents are then vetted by our in-house Compliance team. Users who wish to trade larger sums are required to complete a source of wealth check.
In a previous blog article, we explained why our KYC procedure is so important and why it’s actually a good thing for our users, our company, and the industry in general.
There’s really only one way of protecting yourself from crypto crimes – being vigilant and sensible, as far as possible. This is YOUR money, remember – it’s your responsibility to look after it. The best advice we can give you is to ensure you’re using a regulated, licensed and compliant cryptocurrency exchange, like CoinMetro. We’ll even pay you in crypto for signing up and passing your KYC! Try it today.
See you next time,
The CoinMetro Team