Crypto wallet scams
Cryptocurrencies are on the rise, and with the adoption of these new online cryptocurrencies, the number of crypto wallet scams also goes up. Because of this, we wrote this article. So that you can be prepared for it, and recognize the scams. Crypto wallet scams come in many different forms and can ruin the whole crypto experience for new crypto users. Because of the danger of these scams some users will stop using crypto all together or sometimes even be against it. But this usually only hurts the scammed user and makes them miss out in the future.
In this blog, we look at 4 different types of wallet scams and after that will take look at how you can prevent being scammed by one. So read on till the end!
In case you know any scam wallets or you see a wallet listed on our website that is a scam. But is not labeled as such. Please let us know. Because here on Yada Wallets we do list the scam wallets. But label them with a scam label so that people can be warned before downloading the wallet. So let’s now take a look at the different types of scams.
The Fake Wallet Scam
Although not very common and it usually does not directly steal your crypto the fake wallet scam is a very annoying one. What we commonly see with this scam is that users download a crypto wallet from an unknown/non-official source. But this source, instead of giving you the real crypto wallet gives you a virus on your pc (sometimes together with the wallet). These viruses can be anything. But usually do nothing good. So make sure you have a good virus scanner to detect these, just in case.
But not always do you contract a virus this way. No, sometimes when you download a wallet from an unofficial page, you do get a wallet. But a fake one. This fake wallet will most likely look like the real one. But when you send your funds to it, it will never arrive in your account. Because you actually send it to a wallet address controlled by the creator of this fake wallet. Doing so will end up in a complete loss of funds. So, you will basically have to send your funds to the scammer and they can do whatever they want with it.
Fake Crypto Token Scam
So, in some wallets, you will find the option to buy or convert to their crypto token (usually an ERC-20). These wallet tokens have in many instances a good use case and represent the wallet very well. Like for example the token behind Trust wallet, Coin98 wallet, and many more. But a lot of scammers also use this technic to make you buy useless tokens that, really have nothing to do with the wallet. One wallet/token where we have this suspicion is the Korvio wallet and their KRO token. We recognize this because we could not find any use case for their token and many users seem to report problems with selling the token.
Read our review on Korvio wallet here.
What we see with these types of wallet scams is that users often buy the crypto token. But can not convert it back. Meaning that the amount of Bitcoin they had spent on it, is probably lost. Mostly because these wallets have no intention to let you trade back from their token to Bitcoin, and will not give a real use case to their wallet token.
Double Your Deposit Scam
This one is maybe the most common scam in the whole of crypto. Normally we see this scam in comment sections on Twitter, Youtube, etc. But also happens within wallets. Maybe you have seen it before. A live stream on Youtube with a big crypto celebrity. On this live stream, you will find a text on the left or right side of the screen saying “send 1 ETH to get 2 Back”. But of course, this is not really. If you would send 1 ETH to that address you will receive nothing back at all. This super common crypto scam sadly enough works and many people fall for it on a daily basis. So please do not send your money to an address saying they will double your money.
What we see with this type of scam, is that it does not just happen on live streams. But also in crypto wallets. One good example of this was the Moonbag wallet. This wallet says they have a 100% deposit bonus. But this bonus or your deposit will of course never arrive. What really happens when you deposit to that address is that you have given your crypto to this scammer. Making them some good cash and you poor.
Read our review on Moonbag wallet here.
The Withdrawal Scam
This is a sneaky one. Because it is probably not really illegal. This wallet scam does nothing like the others. But lets you use a wallet normally without stealing your funds. But what you do not notice right away is that there is a hidden fee within this wallet. Because the wallet has a withdrawal fee of 50$ dollars for example or 200$, depending on the wallet. You will most likely only find this out after already having deposited your crypto into the wallet. So now your crypto is either stuck on this wallet. Or you will have to pay this huge withdrawal fee. Of course, you do not want to do this. So you can better not use these kinds of wallets at all.
5 Tips to prevent you from being scammed by a crypto wallet
So now that you know the most common crypto wallet scams that go on these days. Let’s look at how you can prevent yourself from being scammed.
Tip number 1
Never, ever download a crypto wallet from an unofficial/unknown source. This can lead to you downloading a fake wallet. So always make sure that you get your wallet from a legit place. This can be either the official creator of the wallet or a verified app from the Google Play store or the App Store.
Tip number 2
Do not buy crypto tokens you do not understand. So if you have a new wallet and want to buy their token. Go and check the use case for that token. Because if you can not find any use case to it, the likelihood that it is a scam is quite high. So always make sure you understand the use case of the token, and why it exists.
Tip number 3
When you see anywhere, crypto or non-crypto, that you will receive double your money after sending it to someone. Never do this! No matter where you see this. So if you find this on Youtube or in a crypto wallet, do not fall for it. Because it’s all the same trick. Sending your money to one of these addresses will only result in you losing your crypto. So just in case, you find these types of wallets or live streams, make sure to report them. This way others do not have to fall for it either.
Tip number 4
Always check the withdrawal fees. It’s as simple as that. Every time you download a new wallet or create a new exchange account. Make sure that the withdrawal price is not higher than you are willing to pay. Else it could happen that you end up having to pay much more in withdrawal fees than you are willing to pay.
Tip number 5
Make sure you have a good working virus scanner. This is especially important when you download a wallet from an unknown source. Because these sources could also make you download a computer virus. So to prevent this make sure you have a good working virus scanner on your PC or mobile phone.
This was our blog about crypto scam wallets. We hope this blog taught you everything you need to know. So that you are protected against crypto wallet scams. If you see a scam wallet on our website or one that is not listed on it please tell us about it.
So are you ready to start using your very own crypto wallet? Check out our unique wallet finder function here and start using Bitcoin, Ethereum, Cardano, and many more crypto’s today!