Crypto prices have been growing steadily in the past few months. Bitcoin even reached a new All-Time High in early August. But, as it happens in any bull market, there are occasional dips. In these cases, crypto off-ramp platforms come in handy.
Not only is it useful to protect your gains before the price falls, but also to spend your gains in the real world, where many merchants still don’t accept crypto. Choosing the right off-ramp platform can be difficult. Scammers are constantly developing more sophisticated ways of stealing investors’ funds, so you must be wary of the latest trends in crypto traps.
1. Fake Off-Ramp Sites
Fake websites are one of the most common scam models on the Internet. Scammers may create a legitimate-looking platform that mimics real off-ramps. Whenever you’re using a new platform, there are some things you should check before introducing any personal information.
If the exchange offers you benefits that are unbelievably good, you probably shouldn’t believe it. But, further than that, other indicators can be more difficult to detect. For example, if the site has poor grammar or an interface, it’s likely illegitimate. The lack of a Privacy Policy page can also be very telling.
It’s also worth checking the company name and the domain. Is there any mention of the company as a legitimate business? When was the domain registered? Recently created domains are typically scams. Real exchanges would most definitely have older domains, given their history in the ecosystem.
2. Scams Using Exchange Names
Malicious actors often emulate legitimate exchange websites, copying the interface and registering a similar domain name. If you type in your login details on the fake website, you’ll expose your credentials to cybercriminals.
Although many fake websites manage to design very convincing duplicates, some elements give them away.
- Domain name. The scammer will never be able to truly replicate a legitimate website’s domain. Verify that the spelling of the company and the domain is correct. Be extra careful of similar letters, like lowercase l/L and uppercase I/i.
- Security certificates. Check if the SSL certificates are valid in the URL bar. The objective of this security protocol is precisely to prevent fake websites and secure legitimate ones by encrypting the data.
Scammers may also impersonate legitimate exchanges through ads of fake support agents.
3. Phishing for Wallet Access
Phishing scams in the crypto ecosystem are attempts to steal your private keys or wallet credentials using fake messages. Victims could, for example, receive an email, SMS, or even social media messages, requiring them to share their credentials.
Scammers would typically claim there’s an error with the account, prompting users to share their passwords or private keys to validate their identity. Phishing schemes are usually paired with social engineering practices, where attackers try to manipulate or trick users, leveraging fear and urgency.
It’s important to remember that no legitimate service will ask you to share your personal information or credentials outside their official channels. If you receive an email or SMS from crypto wallets or exchanges urging you to share your login details, it’s most likely a phishing attempt. In this case, double-check the sender address. Official e-mails should feature the company’s domain name.
If you detect a fake e-mail, block the sender and report it as spam. Remember to avoid opening links that you don’t trust; they may install malware on your device and compromise your data.
4. Fake KYC and ID Theft
Fake off-ramp websites can pose a threat, even if you don’t share your private keys or make any deposit. These scam sites can ask you for your identity documents, as part of their KYC measures, only to steal your identity. Once the cybercriminals get access to your personal details, they may access other accounts, including bank accounts or credit cards. Thieves may even open new accounts or commit crimes using your identity, damaging your credit score and even causing you legal issues.
Besides verifying the legitimacy of the platform before opening an account, you should keep in mind that KYC is a strict and regulated process. If anything in the interface looks weird or fake, don’t introduce any personal information.
5. Hidden Withdrawal Fees
Another risk in the crypto ecosystem is related to hidden fees. Sometimes, exchanges may charge low or even no fees to try to lure new users into the platform. However, once they sign up and make a deposit, the platform will charge high withdrawal fees, so users are limited in withdrawing their assets.
Although it doesn’t necessarily expose the identity of the users or take all their funds, it does force them to pay excessively just to make use of their money. To prevent this, users should read all terms and conditions of the platform thoroughly before signing up or making deposits. A good practice is to read reviews online from other users to find out about other experiences with any given platform.
Use Trusted Platforms Only
The best advice to avoid scams is to only use trusted platforms. Verify the company’s history, their legal compliance data, and any reviews you may find online to make sure you’re using a legitimate service. The best way to protect your funds is to stay informed.
You can never be too careful when it comes to protecting your investments. This is especially relevant in a market like crypto, where regulations aren’t yet uniform, and the promise of big gains attracts a lot of new investors.
