People across the globe are affected by scams every day, whereby scammers de-fraud victims of sums of money that range from a few cents to millions. The virtual currency space in which Coinify operates in is not exempt from these crimes and there are scams aplenty targeted towards our service, with new spins on old schemes being thought-up by fraudsters every day.
We have been made aware of an increasing amount of scammers and fraudsters targeting virtual currency users by stealing account information. The most common cases that occur involve credit card information being stolen and used to buy bitcoin from our platform.
These can be avoided if you transact with caution and are aware of the signs of scams. In this article, we have outlined some of the more common scam tactics used today so that you can identify them instantly. Alongside these tactics are also some quick tips on how to protect your assets and stay safe.
Please take into account that when a scam occurs, Coinify is not held liable for any loss resulting from fraudulent transactions, as these are made with the consent of the card or bank account holder.
There are many signs that you are encountering a scam phone call. Below are some of the more common tactics scammers employ when targeting individuals via the phone:
- They may ask for sensitive data over the phone, such as card or bank information;
- They may ask for personal data over the phone, such as your social security number or passwords;
- A common scam tactic is when the scammers call to let you know that your computer’s security has been compromised or hacked. Note that most software companies like Microsoft DO NOT call individual customers in an incidence of a hack. They may ask for remote access to your computer. Never let an unknown caller/party remote into your computer or install software in it;
- You may receive an SMS for verification codes that you need to accept via your phone from an activity you did not initiate;
- You are asked to purchase or pay for a subscription, additional service; or to renew a license, etc. directly on the phone.
While these tactics may be common, note that there may be many more ways where phone scams can occur, and crooks are always trying new ways to manipulate victims.
Please be wary if you happen to receive a phone call from someone claiming to be a member of the Coinify staff. If someone calls you claiming to be Coinify’s support hotline online, note that these are most likely fake. The Coinify Support Team does NOT conduct phone support and we will never ask you for sensitive information via the phone. If you receive a call from Coinify or from another party that makes claims to a relationship with Coinify, it is vital that you take caution to not perform a transaction or share payment/personal information. Read more about phone scammers here.
Web/ SMS Scams (Phishing)
Phishing is much like a phone scam where it is also the attempt to obtain sensitive information such as usernames, passwords, credit card details, and funds–often for malicious reasons. Scammers obtain the information by setting up fake links, web pages or websites under the guise of legitimate platforms to lure you in with a sense of security.
Most phishing scams occur through email or advertising; emails with legitimate looking links are sent, which in turn may redirect you to a fake website or a form–regardless, there will be something in the page element which will prompt you to fill in information, such as passwords or bank account details, that the scammers can then collect and use to their advantage. The emails may or may not be related to Coinify.
A new breed of phishing has emerged in the recent years via mobile SMS. Your phone or other personal mobile devices are easy targets as they are used to store massive amounts of data that can be hacked into. SMS phishing (or ‘smishing’) uses the same tactics as email phishing, but instead, links are sent via text messages to victims. The contents of the text message can be anything from an urgent message from your bank, an alert from Coinify, or a notification–all with links attached. Exercise caution when you receive such a text and note that Coinify does not text customers for alerts or updates. If you receive a text message from us, your bank, or any suspicious text in that matter, do not click on the link and be sure to contact your bank or the party messaging you for confirmation.
Phishing links may be detected through small anomalies in the link, such as a subtly misspelled domain name or some other minute mistakes. For example, rather than being redirected to coinify.com, you could be sent to coinlfy.com, coinify.net, etc. We have in the past, encountered other websites using the Coinify name as a domain that misled some of our customers. Unluckily, the site was revealed to be an investment scam. Thus, remember that the only domain that Coinify operates on is coinify.com.
Be aware of this when logging on to your account and double-check the site you are on before entering any sensitive information on it. It is crucial that you always check the URL before entering and treat any unusual links with suspicion. Before clicking on any links, do a web search for the company, phone number, or URL to be sure of its authenticity. If all else fails, be sure to at least scan the URL bar to look for the “https” and “secure” lock symbol, and check that the URL is correct.
Social Media Scams
Interacting with social media can be a helpful tool for keeping up with what’s happening with the company. However, Coinify does not engage in customer support via social media and we do not have designated support pages or representatives for our social channels.
It is also our procedure when responding to customers via social media to divert customer queries and comments on social media towards our customer support, rather than reply directly to them on the channel to protect any sensitive information they may reveal in the conversation. We may respond to general questions on Facebook and Twitter, but any customer issues or queries that require the submission and/or revelation of data will be directed to our support portal.
Furthermore, we will never send you a personal message via social media in for support, alerts, or updates. Note that phishing links can also be sent via social media.
We also DO NOT use separate support profiles to communicate with users on any social media; all social media correspondence is from our pages as listed below:
What to Do If You Think You Have Been Scammed
If you notice any unusual bank activity or transactions linked to Coinify that you did not make or consent to; OR you have lost funds via Coinify unknowingly through fraudulent activity, you should first contact your bank. Your bank may be able to help you better by confirming is a fraudulent transaction did indeed occur and can help you take the first steps of preventing further damage, such as blocking your card to avoid further purchases from us.
Coinify is just an intermediary for cryptocurrency transactions. We try to make our service as secure as possible and assess each transaction through our card payment processor’s risk engine. The risk engine conducts security checks through a series of automatic evaluations that accepts or rejects transactions based on calculated assessments. Ultimately, it relies on the card holder giving sensitive information and consent or validating a transaction. Thus, a fraudulent transaction may be able to be processed because of credible information scammers can collect from their victims.
Therefore, we hold no liability over the losses incurred from the scam as the transactions could have only been conducted with the consent of the card owner, which the scammers have in their possession because it was given to them by the victim.
If you suspect that you have encountered scammers claiming to be Coinify, or you believe that you have been scammed, please alert us at our help center.
Image Credits: TBIT, IAmMrRob (Pixabay)
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