A crypto airdrop works like a promotional event where blockchain companies distribute free tokens to participants. But scammers are sending fake coins and stealing info.
Digital currencies have caused ripples in blockchain-based services, and major players are already feeling the heat from the competition. Airdropping tokens appears to be a marketing stunt to create awareness about a new currency entering the market.
However, recent developments indicate that scammers are airdropping fake tokens to digital wallet holders and stealing personal information and funds instead. Stories are surfacing throughout Twitter, Reddit, and Facebook where victims are warning inexperienced investors of this new airdrop token scam.
Prestigious organizations like Cyber-Forensics.net, a cyber forensics service for online scam victims, are on alert mode, attempting to identify the modus operandi.
How do airdrop token scams work?
Timothy Benson, mining scams expert at Cyber-Forensics.net, says "Once a user receives a scam token, their immediate goal is to exchange the new token, as the so-called blockchain service claims to incentivize token receivers for doing so." But as soon as the users try to exchange the coin, they fail to exchange the airdropped token.
A leading blockchain company tweeted a list of fake tokens being distributed to wallet holders and advised investors not to approve the fake tokens through any website. They say these websites have resulted in investors losing funds from their wallets.
Benson, who has helped thousands of victims recover stolen cryptocurrency, opines, "scammers behind these airdrop token scams continue to roam free without any repercussions.” The best defense that investors have right now against them is not to visit faulty websites and know how to avoid them.
How to avoid becoming a victim of an airdrop token scam?
- Recognize red flags: Avoid free tokens that are not exchangeable on major platforms. Scammers may try to attract victims into signing malicious contracts.
- Identify fake projects: The ease of creating fake projects has substantially led to an increase in the number of airdrop token scams. But experts say staying aware is the best tool to avoid losing funds unnecessarily.
- Understand how an airdrop token works: An airdrop is a promotional event that is typically performed by startups to promote their virtual currency projects. The aim of the project is to create awareness about the new coin offering and get people interested in trading by sending participants free coins to their wallets, usually Bitcoin or Ethereum. But to get the free gift, recipients may be required to have a minimum quantity of coins in their digital wallets. Additionally, they may be asked to promote the coin on social media sites, etc.
- Be careful with sharing personal information.
What to do if targeted by airdrop token scammers?
As cryptocurrencies continue to soar high, airdrop token scams show no signs of taking the back seat. Here is what investors should do if they are being targeted:
- Secure the account immediately: The preliminary action to take before suitable help arrives is to close the faulty website browser, change the password of payment apps quickly, and disconnect all the devices from the network.
- Report this matter: As a second measure, take the matter to concerned authorities like trade commissions (FTC), exchange commissions (SEC), and crypto exchange companies.
- Seek immediate help: When someone believes they have fallen victim to a token scam, they should get immediate help by contacting local law departments, reporting the first incident report, and trusting the process. Remember, don’t lose hope. It's never too late.
- Contact fund recovery services: If the lost amount is significantly large, let the experts take the matter in hand. They will execute well-planned and result-oriented strategies to draw effective conclusions. Victims can also seek appropriate counseling during court proceedings to bring criminals to justice.
How to report airdrop token scams?
Although airdrop token scam victims may feel daunted, it is ideal to take either of the two approaches when they want to report the scam:
- Online: by visiting the official websites of institutions. But be careful, scammers may have posted fake Google ads. Thus, check the link and make sure it starts with "https://
- Offline: Online scam victims can also submit hand-written complaints and lodge a file by visiting the police department in person with evidence.
How can fund recovery services help victims of airdrop token scam?
Airdrop token scams have become increasingly popular. Fund recovery services often consist of experts who specialize in helping victims recover lost cryptocurrency in any kind of online scam or other financial-related scam by providing the following services:
- Competent security advice: the aftermath of any online scam can be devastating. At times, this impedes individuals' or organizations' decision-making capabilities. Hiring competent professionals brings to the process an authoritative power to choose actionable measures.
- Employ security software and firewalls: If the hackers were able to penetrate victims’ computer systems by brute force, professionals would delete any malicious virus that could potentially damage available data. They will install safety firewalls to roadblock attackers in the future.
- Back-up data and systems: It’s crucial for token holders to retrieve their lost crypto coins as they are extremely valuable in today’s market. Professionals might be able to secure lost data and trace which addresses funds flowed to.
Apart from blocking unauthorized access, professionals will help victims safeguard private keys to digital wallets, credit card information, personal information, and personal pictures stored on devices. This data must be kept safe as scammers may exploit victims by taking hold of this data and asking for ransomware to release it.
But make sure to search for a reliable recovery service before hiring them. Successful fund recovery highly depends on the type of service hired. If victims don’t know where to start, they can look at online reviews. For example, a number of positive reviews suggest that Cyber-Forensics.net is a credible company.
About Cyber-Forensics.net
Cyber-Forensics.net is committed to providing the most accurate tracing service for victims of online scams. Cyber-Forensics.net empowers and simplifies the process of tracking down the cyber-criminals and assists in recovering the funds and creating an atmosphere for a negotiated settlement. For more information, please visit http://cyber-forensics.net/.