As the holiday season kicks off and people are caught up in the hustle and bustle of shopping and festivities, it’s important to be aware of the increased risk of crypto scams during December. Experts are warning the crypto community to be on high alert as scammers take advantage of the distracted nature of the season to target unsuspecting individuals and exploit their wallets. So, what’s really going on and how can you protect yourself?
Why the Holidays Are a Scammer’s Playground
December isn’t just about spreading joy and exchanging gifts—it’s also a prime time for scammers to thrive. The holiday season presents the perfect opportunity for scammers to deceive people who are preoccupied with celebrations and shopping. Whether it’s through phishing emails, urgent holiday deals, or fake donation requests, scammers are always on the lookout to catch us off guard.
Last month alone, scammers managed to steal a staggering $9.3 million from over 9,200 investors. While this may be a slight decrease from October’s $20.2 million loss, it’s still a significant amount. Shockingly, one individual lost $661,000 in stETH through a single malicious blockchain transaction. These scams are not always apparent and often disguise themselves as harmless links or requests, leaving victims with drained wallets.
Can You Outsmart These Scammers?
Even seasoned investors can fall victim to scams during the holiday season. However, there are steps you can take to outsmart these scammers and protect your crypto assets. It’s crucial to double-check everything, especially emails and messages that appear legitimate, as scammers are adept at mimicking official communications.
Setting up two-factor authentication (2FA) is not just a recommendation—it’s a lifesaver. Avoid conducting transactions over public WiFi networks, as they may compromise your security. Prior to approving any transactions, use tools to simulate and preview them. Be wary of offers that seem too good to be true, such as holiday-themed scams, fake giveaways, or unrealistic discounts. Trust your instincts and stay vigilant to protect yourself from falling prey to scams.
The Bigger Picture
Crypto theft has amounted to $1.48 billion as of late November this year, marking a 15% decrease from the previous year. Despite the decline, scams and hacks continue to plague the crypto industry, with over $19 billion stolen across 785 incidents since 2010. Scammers employ various tactics, including phishing, pump-and-dump schemes, fake wallets, romance scams, and even blackmail threats. While incidents like the Thala protocol hack resulted in scammers making off with $25.5 million, efforts were made to recover the funds.
Scammers capitalize on human nature, exploiting vulnerabilities such as greed, trust, and unawareness. The holiday season provides them with the perfect opportunity to strike as individuals lower their guard amidst the festivities.
What To Do?
As scams persist in the crypto space, it’s essential for investors to take responsibility for safeguarding their funds. With the influx of new participants entering the market during bullish trends, the risk of falling victim to scams increases. Protect yourself by refraining from sharing your seed phrase or clicking on unfamiliar links. Be cautious of fake giveaways or airdrops, as no one will give you crypto for free.
While enjoying the holiday season, remain vigilant about your crypto wallet activities. Stay alert and proactive, as failing to do so puts your crypto holdings at risk. Remember, only you can protect yourself from falling victim to crypto scams.