How Berkeley Residents Can Become Better Equipped to Recognize Crypto Scams

New data is showing that many scams involving cryptocurrencies don't make use of any sophisticated hacking tools or advanced technology of any kind. The most effective weapon in the scammer arsenal appears to be social engineering, which is the ability to convince someone to do something foolish with their money or assets. Residents of Berkeley can become much better protected against fraud and scams by learning to recognize the social engineering tactics of scammers, as well as by learning how cryptocurrency actually works.

Most of the reputable cryptocurrency exchanges in the world where users track the BTC to USD price, like Binance, have excellent security. These platforms are unlikely to be the source of an attack or scam; in fact, most scams are far more likely to begin in places far removed from the secure fortresses that modern crypto exchanges have become; they will start in private messages, on dating apps or through social media accounts.

The FBI's Internet Crime Complaint Center (IC3) has identified that texting, social media and other forms of direct communication are some of the most common ways that victims are contacted by scammers or fraudsters. It also states that digital assets like cryptocurrency are a common area that scammers target.