Precautions For Fraud Prevention in the Crypto Market

Precautions for Fraud Prevention in the Crypto Market

As the world slowly moves towards virtualisation, cryptocurrencies have become a mainstream investment product in recent years, allowing more and more investors to access cryptocurrency trading and giving fraudsters an opportunity. JPEX (JPEX Crypto Platform) hereby reminds novice investors how to prevent fraud and be vigilant in the crypto market to avoid the loss of funds.


1. Fake customer service, fake official staff

Fraud method: Fraudsters will lurk in major social media (Whatapps, Facebook, Telegram and instagram, etc.), and they will take the initiative to privately message investors to help users solve problems one-on-one or pull investors to fake exchanges Official group (there are different accomplices in the group, chatting with each other to create a hot fake image). When investors are pulled into a fraudulent group, these fraudsters will attract investors to a certain address in the name of the activity, and then provide rewards. Once the investor sends the cryptocurrency to the address specified by the scammer, it never gets back.

Countermeasures: In fact, most formal exchanges have repeatedly emphasized that as long as users actively private message users, there is a high chance that they are frauds, or official personnel will never send private messages, etc. Take JPEX as an example, JPEX customer service will never appear in any community. JPEX customer service will only appear on JPEX official website and JPEX App. Channels to find JPEX online customer service: – Through the website: there will be a green inbox picture in the lower right corner of the screen; – Through the app: open the app, click the home page, and find “Quick Contact Us” in the center of the home page If you want to use live customer service, please click whatapps logo, the screen will automatically switch to contact JPEX live customer service


2. Airdrop (Gift) Scam

Fraud method: Fraudsters will impersonate the social account of a well-known platform or product, and then make up a story and falsely claim to airdrop cryptocurrencies to users, but users need to transfer the cryptocurrencies to an address before they can receive rewards. The so-called airdrops refer to gifts or lottery activities organized by various institutions in the crypto market for marketing purposes or other purposes. Since such activities often give good rewards, many people even make a fortune by airdropping. funds. But because of this, there are often a lot of “fake airdrops” mixed in, and scammers will ask you to transfer your money to an obscure wallet or exchange, which will outweigh the gains.

How to deal with it: First of all, any activity that needs to provide funds in the past to get airdrop rewards is a scam. It is also recommended that users understand the background of the project before participating in these airdrops. Some formal exchanges will never require users to send coins to a specific address; taking JPEX as an example, all official activities will only be released in the following channels: – JPEX APP Announcement Center; – JPEX FACEBOOK; – JPEX TWITTER; – JPEX Discard If you have any doubts, users can contact JPEX online customer service for inquiries, or ask in the JPEX official community (see the end of the article).


3. ICO scams:

ICO means Initial Coin Offering, similar to the concept of stock IPO, creators can use this activity to recruit funds to issue new coins. And scammers are taking advantage of this, attracting investors to raise funds to buy an emerging coin, and claiming that it will rise to a certain extent in the future; and in the end, these air coins plummeted to zero as soon as they were listed, or even had a chance to be listed. nothing. Such fake ICO scams often lack a viable business model or white paper. 

Countermeasures: It is recommended that novice investors can choose some currencies with larger market value to invest (ranking 1-50 in market value) at the beginning, and these currencies will have certain liquidity and credibility in the market. Taking JPEX as an example, the currencies listed on JPEX are those with larger market capitalization rankings that have been screened by JPEX. If you really want to contact ICO, it is recommended that investors must understand the background and technology of the project before making an investment decision.


4. Phishing

Fraudsters will fake official emails and send emails to users notifying users that there is a problem with their accounts. They need to click on the link attached to the email to fix the problem, and this link will lead users to a fake website similar to the exchange’s website. Users are required to log in, and fraudsters can use this to defraud account numbers and passwords, log in and steal user funds.

Coping methods: First, we need to confirm whether the email is sent by the official through the email address. Second, when the user receives the email about the frozen account, he should first check with the official customer service, preferably a real customer service, and remember not to Randomly open links from unknown sources and enter any account information to prevent hackers from stealing account numbers and passwords. 


As the use of cryptocurrencies becomes more widespread, the general public may be excited about their prospects. However, illegal elements are using the public’s unfamiliarity with this emerging product to fabricate investment scams to make money. When we invest in cryptocurrencies, we must always be vigilant and do a good job in data collection to prevent deception.



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