Cryptocurrency Airdrop Scams: Four Ways of Identifying and Avoiding Them
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Through airdrops, you can obtain free tokens, but use caution, as scammers have taken advantage of this publicity to defraud people. Crypto airdrops are a terrific way to receive free tokens and give cryptocurrency projects a means to advertise. But bogus airdrops used by fraudsters to con victims can benefit from the allure of free assets. So, how can you recognize and evade a cryptocurrency airdrop scam?
Cryptocurrency Airdrop Scams: What Are They?
Cryptocurrency airdrop scams involve the advertisement of the fraudulent airdrop, in which the token in question is a made-up one or a clone of an already existing one.
There’s a significant probability that when a potential victim sees this fake airdrop, they aren’t aware of its malevolent origins. They might not hesitate to sign up for the airdrop if they are interested in receiving the free tokens.
However, signing up for crypto airdrops will not only require you to provide your name or email. In fact, for one to receive an airdrop, one will have to supply the address of his or her wallet. It isn’t too risky to share your wallet’s public address. Nevertheless, it points out your wallet and the amount of assets in it.
More sinister scams can also ask for the secret key to your wallet. Your private key should never be shared, but not everyone is aware of this. In essence, transactions from your wallet are authorized using your private key. Therefore, if an attacker manages to get their hands on yours, it will just take them a few minutes to empty your wallet of its money.
How can an Airdrop Scam be Identified and Avoided?
Clearly, cryptocurrency airdrop scams are quite malicious. But one can avoid them by having knowledge of some things.
Do your Research About the Cryptocurrency
As earlier mentioned, some crypto airdrop scams usually use already established cryptos, which we’ll establish, to create some illusion of authenticity. At the same time, some may use the name of a crypto that has never existed. Whichever form they take, it is quite essential to carry out thorough research prior to signing up for their airdrop.
By doing this, you may determine whether the identified token is real or, if it is preexisting, whether there is even an airdrop happening. Make sure to look for any news regarding an airdrop on the project issuing the tokens’ official websites and social media pages.
You should be cautious if you discover that the company hosting the airdrop doesn’t exist or has a very minimal online presence (i.e., no social media or few followers, no official website, no reviews).
Ensure That You Properly Protect your Data
When signing up for airdrops or giveaway contests, it is very important that one supply very sensitive information. Internet criminals spend most of their time trying to get hold of personal data, which could be used to gain access to exchange accounts, crypto wallets, and so on.
Unfortunately, giving up this kind of generic information when signing up for items is difficult to avoid because your email address alone can be used to break into some cryptocurrency accounts. However, there are some pieces of information that you should never divulge.
It is crucial in terms of cryptography that you keep your private key and seed phrase hidden. Giving your login information can also be a serious mistake because it could offer a hacker access to your crypto-based accounts.
Be on the Lookout for Signs that Identifies a Site as a Malicious one
Because airdrop scammers employ harmful websites to sign people up, it’s important to understand how to avoid them.
Although malicious websites can be quite persuasive, they frequently include obvious warning flags that you can spot, such as:
- Bad or Short URL.
- Spelling errors and Poor Grammar.
- A Website with a very young domain age.
- The Site crashes very often.
- Having no secure lock icon near the URL.
- Never Send Out Your Token
When a crypto airdrop asks you to send some cryptocurrencies to receive an airdrop, you should know that it is a scam.
You should never be required to send a holding of your own assets as part of an airdrop. There should be no justification for a project to ask for some of your cryptocurrency in return since an airdrop fraud entails the distribution of free tokens, at which point it turns into a transaction.
Crypto Airdrop Scams Can Be Quite Persuasive
It might be far too simple for thieves to create elaborate and convincing scams. To secure your data and your assets, it’s crucial that you are aware of what to do before participating in a crypto airdrop.
