Danger! Crypto fraud threatens Saxony: How to protect your money!

Danger! Crypto fraud threatens Saxony: How to protect your money!

The Saxony Consumer Center is currently warning of an increasing number of investment fraudsters in the crypto sector. Fraudsters are increasingly contacting their victims via messenger services such as WhatsApp or Telegram and promising them exclusive knowledge on how to build wealth and high profits. In order to gain the trust of the victims, the perpetrators often switch to telephone or video conversations. At the beginning they only demand small amounts, but these sums quickly increase, which reveals the dangerous nature of their machinations.

A particularly perfidious trick used by fraudsters is the request to install remote maintenance software such as AnyDesk. This gives the perpetrators access to the victims' devices, can spy on passwords and initiate transfers. Victims often realize too late that they have been scammed because the transfers are legally considered authorized. The fraudsters are not afraid to steal their victims' identities, conclude contracts or take out loans. Restoring credit can take months, which puts additional strain on those affected.

Precautions and support

The consumer advice center advises investors to understand crypto transactions carefully and, if fraud is suspected, to inform the bank immediately, block accounts and report it to the police. The support of the consumer advice center must also be taken advantage of; Those interested can book appointments online or by telephone.

There are also other risks in the crypto environment, which the consumer advice center provides information about. For example, there is a risk of hacker attacks and phishing. Platforms like Mt. Gox and Bitfinex are examples of hacked services. To protect themselves, users should enable two-factor authentication and use strong, unique passwords.

Choosing the right wallets

When it comes to cryptoassets, there are different types of wallets, each offering different levels of security. Hardware wallets, also known as cold wallets, are offline and offer better protection against hacking. In contrast, software wallets, or hot wallets, are online and more vulnerable to attacks. Safe storage of private keys and seed phrases is essential, as loss or theft of these credentials can result in the complete loss of crypto assets.

In addition, the market itself harbors various risks. The insolvency of providers, as in the case of FTX and MyCrypto Wallet, as well as fraudulent activities such as QuadrigaCX and Africrypt have undermined trust that was believed to be lost in the past. Investors should also be aware that fees when buying, selling and exchanging cryptoassets can vary and are not always transparent.

The consumer advice center points out that blockchain transactions are generally not reversible. Investors also need to ensure that their wallet supports the right coins and the respective blockchain. New cryptographic assets can be particularly risky because they quickly lose value or are difficult to trade.