security

Money Security: Unbreakable Vaults for Your Digital Assets

Grow a diverse investment portfolio with money that is safeguarded by CoinPappa’s top-notch security protocols. Using our insurance policy helps to protect against damages, theft, and loss of private keys.

Multi-Party Approvals and Segregated Accounts: Your Funds, Your Control

Multiple authorizations are required for transactions, ensuring utmost security. We operate on a strict “no fractional reserve” principle, your funds are exclusively yours.

Strict Whitelisting and Encryption: Uncompromising Account Protection

CoinPappa takes your account security seriously. Transactions from our cold wallets are limited to an approved whitelist, blocking unauthorized withdrawals. Your data is protected through encryption in transit, with HTTPS connections and hashed passwords. Enable two-factor authentication for an extra layer of defense.

Personal Data Security: Your Privacy, Our Commitment

Your personal data is treated with the utmost care at CoinPappa. Encrypted using 256-bit AES encryption, it remains illegible even if accessed. Trust us to keep your sensitive documents locked up tight with a high-level initiator/approver setup every single time.

Crypto scams to watch out for in 2024

Scammers are incredibly creative when it comes to luring you into a trap or getting you to share your personal information. For that reason, many crypto scams involve some type of impersonation, along with a selection of carefully crafted lies that are often tailored based on the victim they’re targeting. The most common types of crypto scams perpetrated right now include the following:

Blackmail and extortion scams

The Federal Trade Commission (FTC) says some scammers will claim they have embarrassing personal information, including your own photos or videos, to lure you into a trap. They will typically threaten to make the information public, but with the promise of keeping your information private if you do what they want. Their demands always seem to be the same — you can make the problem disappear if you send them a crypto transfer right away.

According to the FTC, you should report blackmail and extortion scams to the Federal Bureau of Investigation (FBI) immediately. Also, don’t send the thief any money, and don’t communicate with them at all.

“Business opportunity” scams

This scam can play out in a number of ways, but it typically takes place when someone contacts you with a business opportunity with the promise of helping you grow rich. In some cases, scammers get you to fork over your crypto by telling you they can provide you with exceptional returns, even doubling or tripling your crypto assets overnight.

Either way, you should know that there’s no such thing as “guaranteed returns,” and that’s especially true when it comes to digital assets. If someone contacts you and says they can work wonders with your crypto and make you wealthy in a hurry, don’t reply.

Fake job listing scams

In other scenarios, thieves will create fake job listings or send unsolicited job offers in order to lure new victims to their scheme. The “jobs” they’re hiring for are often in the crypto field, including things like crypto mining and recruiting other crypto investors.

Either way, these jobs all have one thing in common — you have to make a payment in crypto to get started. The scam can take on many forms from there. The scammer might convince you to make additional payments, or they’ll make a deposit in your bank account and ask you to send them cash only for their original deposit to fail.

Giveaway scams

This type of scam promises you free money or another type of prize if you fall in line with whatever they want you to do. Many scammers pose as celebrities or influencers in order to lure in new victims who don’t know better, and it can be hard to determine what’s actually real.

As an example, crypto scammers constantly try to impersonate Elon Musk over social media and video in order to get people to send in digital assets. An Elon Musk “Freedom Giveaway” crypto scam that took place on Twitter even promised free crypto to the first 1,000 new followers who signed up, but the whole thing was a sham.

Impersonation scams

The giveaway scam example we outlined above is also an impersonation scam, but there are many other impersonation scams to be aware of. For example, crypto thieves will say they’re from the government or law enforcement in order to gain some credibility. From there, they’ll convince you your accounts or assets are frozen as part of an investigation, and that you can pay them in crypto to resolve the issue.

Other times, they’ll say they’re from a large company like Amazon, Microsoft, FedEx or even your bank in order to convince you of some other storyline. In the end though, the goal is getting your crypto no matter which lies they use.

Investment scams

The FTC says that, in this scam, an “investment manager” you have never heard of reaches out to you with an incredible investment opportunity. Of course, the process starts with you sending crypto to their online account or downloading an app that will help you get rich, and you need to do it in a hurry.

In many cases, these scammers will have legitimate-looking websites that use complicated investing jargon to seem real. If you log into your account with the platform, however, you may be blocked from withdrawing your money or only able to access your cash if you pay an exorbitant fee.

Phishing scams

A phishing scam takes place when someone pretends to be someone else, usually a company, in order to get you to willingly share private information. Many crypto phishing scams aim to get you to share your private crypto wallet keys, usually by sending an official-looking email that asks you to log in to your account.

Pump and dump schemes

This scam takes place when a group of people get together to entice others into investing in a particular coin, usually by posting on social media to build up hype. From there, scammers work together to drive up the price of the asset until they all simultaneously cash out and leave all the new and excited investors holding the bag.

Romance scams

Finally, remember that romance scams are alive and well in the world of cryptocurrency. With this type of scam, someone pretends to become your love interest online, usually by weaving an intricate web of lies about themselves. These scammers can spend months getting you to build up romantic feelings for them, at which point they ask for crypto payments or lure you into investing crypto with them so you can spend your lives together.

At the end though, the romantic encounter was always fake, and the person on the other end of the line wasn’t who they said they were.