As scammers and fraudsters take advantage of new technologies including artificial intelligence to target unsuspecting victims, cryptocurrency exchange bitcoin.com.au has revealed its top tips to avoid falling victim to a crypto scam.
The news comes as the University of Queensland reports Australians lost around $171 million to crypto scams last year.
“We know that more than 1 in 4 Australians currently own or have owned crypto in the past 12 months. Despite this, there’s no formal regulation of crypto trading in Australia, so it’s important to do your research before you commit,” says Adrian Prezelonzy, CEO of bitcoin.com.au, one of Australia’s largest cryptocurrency exchanges.
“Anyone can accept bitcoin payments from anyone, anywhere in the world, anytime. This opens up amazing opportunities for investors, but it also means it’s fertile ground for scammers too,” says Prezlozny.
“Like any financial product, it pays to take the time to protect yourself and your investment. The best way to do this is to know what to avoid and who to trust.
“The most important thing to remember is that just because crypto is digital currency doesn’t guarantee you’ll get rich quick. There’s no such thing as free money - if the offer sounds too good to be true, it generally is,” he says.
Beware the crypto scam – what to look out for
1. Be wary of recommendations from strangers
Beware of endorsements from celebrities or online acquaintances promoting investment opportunities. These are often part of fake advertising campaigns.
2. Offers of 'free' money
Promises to double your money or offer 'free' cryptocurrency are red flags. If it sounds too good to be true, it is.
3. Requests for payment in cryptocurrency
Be cautious if someone asks for payment in cryptocurrency. Requests for payment at a 'Bitcoin ATM' or 'Crypto ATM' are particularly suspicious.
4. 'Low-risk' investments
Cryptocurrency is inherently volatile. Companies that promise high returns with minimal risk are misleading you. It's that simple.
5. Screensharing software requests
If a broker or advisor asks you to install screensharing software like 'AnyDesk,' it's almost certainly a scam. No legitimate company needs access to your desktop.
6. Unexpected contact or pressure to transact
Be wary of anyone claiming they've found cryptocurrency that belongs to you. Scammers often request a 'release fee' and then disappear with your money.
7. Avoid recovery services
Cryptocurrency transfers are irreversible. Any recovery service demanding payment upfront is almost certainly a scam and should be avoided.
Protecting yourself and your investment
“The best way to protect yourself and your investment is to choose an established online trading platform you can trust,” says Przelozny.
“A reputable exchange should be upfront about how they manage your trades and store your crypto. It’s important to understand details like security, data integrity, cold storage, fees, consumer protection and available coins.
“A crypto exchange with a solid track record that is trusted by many customers and has the right checks and balances in place is your safest bet,” he says.
About us:
About bitcoin.com.au
bitcoin.com.au is Australia's leading cryptocurrency exchange, offering low fees, robust security, and exceptional 24/7 customer support. bitcoin.com.au’s user-friendly platform makes buying, selling, and storing cryptocurrencies easy for everyone. Learn more at https://bitcoin.com.au
Contact details:
New Romans
Anthony Spargo
0400 688 525
