The crypto industry has been a prime target for cyber criminals as the sector continues to grow in popularity. Several scams and hacks have prompted people to keep their distance. In order to spread awareness about safe engagement with crypto, Indian exchange CoinDCX has released a list of safety tips and suggestions that customers can to keep in mind while they are purchasing and selling cryptocurrency online, on the sidelines of the Safer Internet Day that is observed on February 6.
In a press release the exchange pointed out that several fake websites are in operation, warning users that these fraudulent URLs were mimicking popular exchanges — including CoinDCX. Users have also been warned about unsolicited messages that promise guaranteed/high returns or request personal information. CoinDCX also advises users to Invest in platforms that are compliant and registered with FIU-IND and warns that if Indian users invest in crypto through unregistered platforms, they could lose their money because the government could block the URLs of such facilitators at any time.
“Avoid succumbing to pressure tactics that demand immediate decisions. Remember to ‘Do Your Own Research’ (DYOR) before engaging with any platform or making investments. Investors should remain vigilant against the proliferation of fraudulent profiles on social media platforms,” the exchange said in the press release.
In the recent past, several notable figures within the crypto industry have found scammers impersonating as them, with the intent to mislead and potentially defraud investors. Just last week, Binance Co-Founder Yi He had warned people that unidentified notorious elements are reaching out to existing or potential crypto investors, offering them scam token listings for money using her name.
In light of such events, industry experts have alerted people against engaging in direct messages with unverified users and clicking links from suspicious sources.
Since returns could be very high, crypto hackers and scammers are always flooding social media platforms looking for potential victims. As per a recent CryptoSlate report, crypto projects lost $127 million due to hacking and fraud in the month of January 2024 alone.
Orbit Chain, a cross-chain bridging project, reportedly became the first big hack incident in January and lost over $80 million in assets in a bridge hack attack. Reports also emerged recently that Ripple Executive Chairman, Chris Larsen suffered a $112 million exploit in his personal account this January.