Trading cryptocurrency is completely safe, so long as customers take the necessary precautions to protect themselves and their information. Unfortunately, scams happen in all industries, including that of cryptocurrency. While we can't stop these scams from taking place, we can educate our customers on how to be vigilant and take the necessary precautions to stay safe.
Cryptocurrency transactions are irreversible. Unlike other payment types, you cannot stop the payment once you send the coins out to a third party. Always make sure that you are sending the coins to a wallet address that you have full control over.
One of the most common tactics that scammers in the industry use is called "job fraud". Often scammers will try to recruit you with a job offer through:
- unsolicited email or text message
- online classified ads
- job posting websites
The job may be titled "financial agent" or "client manager". When you answer the offer, the scammers often will hire you as a payment processor for the company. Your job is to receive payments from the company's clients. You'll receive e-transfers or wire transfers into your bank account. The scammers then direct you to send money through Bitcoin to a company representative. The money you receive in your bank account (through e-transfer or bank wire) is either from compromised accounts or other fraud victims. This means that after you send out Bitcoin or another coin, the money that you thought you received and used to make the payment, will get pulled back and you will be out those funds. The scam has made you a money mule, and as well as losing the funds that you used to send out coins, you could also be arrested for money laundering. - see the full article from the Government of Canada here.
There are many different other types of cryptocurrency scams out there, and you can read up on them here. We definitely recommend that users do their research before they accept any offers.
Before you send any digital assets to third parties, always verify that the organization you're dealing with is legitimate before you take any other action. The fraudster can impersonate legitimate companies to make them seem more believable. Look online for contact information for the company that supposedly called you, and call them to confirm. If you are unsure or have questions, please reach out to our support team at firstname.lastname@example.org
Remember, if it's too good to be true, it probably is.