The crypto industry, witnessing a surge in popularity, has also become a prime target for cyber criminals, prompting concerns among investors. To address this issue, Indian exchange CoinDCX has released a set of safety guidelines on Safer Internet Day, observed on February 6, to educate users about secure practices while dealing with cryptocurrency transactions.
CoinDCX highlighted the prevalence of fake websites mimicking popular exchanges, including CoinDCX itself, and cautioned users to remain vigilant. It warned against responding to unsolicited messages promising high returns or soliciting personal information, emphasizing the importance of investing only through compliant and registered platforms recognized by FIU-IND. Using unregistered platforms, CoinDCX emphasized, poses risks of potential losses as the government could block their URLs at any time.
The exchange advised users to resist pressure tactics demanding immediate decisions and urged them to conduct thorough research (DYOR) before engaging with any platform or making investments. It also warned against fraudulent profiles on social media platforms, which have become a breeding ground for scammers impersonating industry figures to mislead and defraud investors.
In a recent incident, Binance Co-Founder Yi He cautioned against scammers using her name to lure unsuspecting investors into scam token listings for financial gain. Industry experts echoed these concerns, advising users to avoid direct messages with unverified users and refrain from clicking links from suspicious sources.
The allure of high returns has attracted crypto hackers and scammers, who actively exploit social media platforms to target potential victims. According to a CryptoSlate report, crypto projects suffered losses of $127 million in January 2024 alone due to hacking and fraud incidents. The hack of Orbit Chain, a cross-chain bridging project, resulting in the loss of over $80 million in assets, marked one of the notable incidents. Additionally, reports surfaced of Ripple Executive Chairman Chris Larsen falling victim to a $112 million exploit in his personal account in January.
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