The Good Tech Companies - Why Are Crypto Scammers (And Not Hackers) Looking For You?

Episode Date: December 17, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/why-are-crypto-scammers-and-not-hackers-looking-for-you. Not every predator out there eats the same prey. Let's see some crypto scammers and hackers here, and who are their potential victims. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #crypto-scams, #crypto-hacks, #phishing, #cryptocurrency-investment, #how-to-prevent-getting-hacked, #learn-cryptocurrency, #obyte, #good-company, and more. This story was written by: @obyte. Learn more about this writer by checking @obyte's about page, and for more stories, please visit hackernoon.com. Scammers and hackers operate with very different methods (and targets) Scammers rely on social engineering, while hackers focus on system vulnerabilities. Scammers focus on human weaknesses, like trust and lack of knowledge. Hackers focus on breaching systems rather than persuading individuals.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Why are crypto scammers, and not hackers, looking for you, by Obite? Eventhaw cryptocurrencies have given rise to new opportunities for both, scammers and hackers continue to operate with very different methods and targets. It's easy to imagine an ordinary person being scammed. Probably, you can say that your aunt, cousin, friend, or even yourself were affected. On the other hand, you can say that your aunt, cousin, friend, or even yourself were affected. On the other hand, the idea of an individual being hacked seems strange, and instead, it's more logical to think of hackers targeting small and large businesses. Do you know why this happens? Well, not every predator out there

eats the same prey. Sometimes, volume matters, some other times, quality, is what matters. They're on the lookout for different victims because they have different skills and resources for hunting. Let's learn more about this. Scammers vs Hackers. Scammers rely on social engineering, which means they exploit human psychology to manipulate their targets. Their victims are often everyday individuals who may not be particularly tech-savvy but are susceptible to persuasive language or emotional appeals. These criminals use charm and storytelling to build trust, promising easy money or exclusive opportunities, which entices their victims to lower their guard. This makes the average person, especially someone who isn't

well-versed in how financial systems or cryptocurrencies work, the perfect target for scams. They don't even need to understand technology deeply, just know how to convince people to part with their money. This is why it's so important to ask a lot of questions and research everything, every time. On the other hand, hackers generally pursue more lucrative or technically challenging targets, like corporations or financial institutions, because their skills are focused on breaching systems rather than persuading individuals. Hackers typically have strong technical expertise, knowing how to exploit vulnerabilities in software or networks to gain unauthorized access. This requires time, patience, and precision,

as their goal is often large-scale theft or disruption. While some hackers may dabble in phishing, most of their attacks aim for significant financial gain, and thus, they target businesses that hold valuable data or assets. Both groups, however, share a common thread—they exploit weaknesses. Scammers focus on human weaknesses, like trust and lack of knowledge, while hackers concentrate on system vulnerabilities. However, in essence, social engineering and technical hacking are two sides of the same coin, both leveraging different kinds of gaps to achieve their malicious objectives. Common attacks, against common folks. Common crypto scams targeting everyday people usually play on the promise of easy wealth. One of the most prevalent scams

involves fraudulent investment schemes. These scams lure victims with promises of high returns on small investments, often through fake trading platforms or get-rich-quick opportunities. Victims are encouraged to deposit their cryptocurrency with the scammer, who vanishes once the money is transferred. The appeal lies in the simplicity. Invest a small amount and watch it grow exponentially, except the growth is a complete fabrication. Another frequent vector of attack is phishing, where scammers create fake websites or send emails that closely mimic legitimate crypto exchanges or wallets. Victims unknowingly enter their login details, allowing scammers to steal their funds.

Phishing scams are especially dangerous because they rely on minor differences in URLs or website appearances, which are easy to overlook. Even cautious userscan fall victim to these types of attacks, especially when they're in a rush or under pressure. Fake giveaways and impersonation scams are also rampant. Scammers pose as well-known figures in the crypto world, often on social media, promising to double or triple any crypto sent to them as part of a promotion or giveaway. People, eager for free money, send their funds only to realize they've been tricked. These scams prey on greed and excitement, making them highly effective against a broad audience. There are other, more complex strategies, but that's for another story. The ideal target for scammers. Crypto scammers often target individuals who have limited knowledge about cryptocurrency but are eager to profit from its rapid growth.

These victims might not fully understand how distributed ledger technology, DLT, or digital wallets work, making them more susceptible to fraudulent schemes. They capitalize on this lack of understanding by presenting offers that seem too good to pass up, such as guaranteed returns or low-risk investment opportunities. People unfamiliar with the volatility of crypto markets may fall for these promises, not realizing that legitimate investments rarely guarantee profits. Another ideal target for crypto scammers is someone who is easily influenced by social proof or endorsements. This group includes individuals who trust recommendations from

influencers, celebrities, or even friends without thoroughly researching the platforms or offers being promoted. Scammers exploit this by impersonating well-known figures or creating fake testimonials to make their schemes appear credible. The fear of missing out, FOMO, drives many people to invest without conducting proper due diligence, which plays directly into the scammer's hands. Additionally, people with a strong desire for quick financial gains, especially during economic uncertainty, are prime targets. These individuals may be more willing to take risks, making them vulnerable to scams like Ponzi schemes or fake ICOs, initial coin offerings.

They often ignore red flags in their pursuit of fast returns, assuming they can cash out before the scam collapses. Theorem patience and desire for immediate profit make them easy prey for scammers who promise instant rewards with minimal effort. Become a difficult prey. Despite the varying levels of knowledge, anyone can fall victim to a crypto scam, even those who consider themselves tech-savvy or experienced in cryptocurrency. Scammers often use sophisticated tactics, which can trick even the most cautious individuals. For example, an expert could unknowingly access a fake version of a legitimate crypto exchange or wallet due to a cleverly disguised phishing link, entering their private keys or credentials into Amalicious' website. No one is completely immune, as scams

evolve constantly to exploit human error or momentary lapses in judgment. We can only aspire to be difficult prey. To become one, there are several key protection measures to follow use multi-factor authentication, MFA, for all accounts. In Obite wallets, you can do this by creating a multi-device account from the global settings. Before using any crypto exchange, especially if it's centralized, check if the team of the coin you're trading has listed it or mentioned it on its official channels. For instance, Obite mentions GBYTE exchanges on its official website. Double-check URLs and email addresses for subtle irregularities.

If you suspect that an email or website may not be legitimate, it's likely a scam. Absolutely avoid sharing your private keys or their equivalents, such as seed words, with anyone. Private keys are called private because they must be private. Keep this irreplaceable data in a safe place. Research investment opportunities thoroughly, avoiding those with guaranteed returns. Never take something at face value. Always do your own research. Read all you can about how everything in crypto works and how to recognize bad and good signs. This could save you some serious headaches later. Stay informed about the latest scam tactics to recognize them early. Featured vector image by Freepik and thank you for listening to this

Hackernoon story, read by Artificial Intelligence. Visit hackernoon.com to read, write, learn and publish.