In 2023, someone lost $173,000 by clicking on a fraudulent link, highlighting the dangers of fraud in the cryptocurrency world. We’ll look at how fraud occurs and how to avoid falling for it.
How does fraud happen?
Scammers use multiple techniques to trick victims. One of the most notable is malicious **smart contracts**, where they hide malicious code in a smart contract. When a user interacts with the contract, their funds are immediately stolen.
How to avoid fraud?
1. **Verify links**: Make sure links are valid before clicking on them, especially those related to airdrops. Scam sites often look similar to the original ones.
2. **Read approvals carefully**: Avoid endless transaction approvals, and investigate contract details using tools like CertiK and Quantstamp.
3. **Beware of fake apps**: Only download wallets from official stores and check reviews. Fake apps can pretend to be legitimate wallets to steal your private keys.
4. **Beware of fake projects**: Before investing your money, check out the team, read the whitepaper, and look for reviews from the community.
5. **Avoid Social Media Scams**: Be wary of direct messages from people claiming to be project admins. Always check official links.
#### Additional tips:
- **Don't keep all your money in one wallet**: Use cold wallets to secure large assets.
- **Revoke Approvals**: Use tools like Revoke.cash to revoke unnecessary approvals.
### Conclusion
Beware of scammers and be aware of the potential risks. Share the information with your friends to ensure they don’t fall victim to the same scams.
