Cryptocurrencies: six tips from EU authorities to protect against online fraud and scams

The rapid growth of crypto-activities and their specific characteristics (global accessibility, speed, anonymity and often irreversibility of transactions) have made users a prime target for cybercriminals. Fraudsters use sophisticated techniques to deceive, such as 'Ponzi schemes', false investment opportunities, free offers on social media and misleading messages. They also use romantic investment scams or fake addresses to compromise wallets. They often contact users via social media, messaging apps, emails and unexpected calls that appear genuine. The risk is financial loss, identity theft and emotional distress. All this was highlighted in a fact sheet circulated by Eba, Esma and Eiopa entitled "Cryptocurrency-related fraud and scams. Stay vigilant and defend yourself".

There are six pieces of advice that the three European authorities give to users. Firstly, to 'stop and think before acting', then to 'check the source carefully', to 'never share passwords, private keys or seed phrases'. Moreover, Eba, Esma and Eiopa write, devices and private keys must be 'kept secure'. One should also 'beware of unexpected investment offers' and, finally, 'think before sharing information on social media'. If, however, a user should fall victim to a scam, the EU authorities continue, then the steps to follow are to 'stop transactions immediately', as well as 'change passwords on all your devices and apps/websites' and 'log off and revoke all access'. In addition, Eba, Esma and Eiopa advise to "immediately move the funds" of the compromised wallet, "contact the cryptocurrency provider" and, finally, "report and notify" the police and relevant authorities.

 Contemporaneously, the three authorities released a fact sheet, again with the aim of protecting and helping consumers, dedicated to artificial intelligence and its use to make online fraud and financial scams increasingly sophisticated and difficult to detect. Criminals, point out Eba, Esma and Eiopa, use fake messages and websites, fake celebrity profiles and even artificial intelligence-generated voices or videos imitating the bank advisor, friends or family members to deceive users. They often contact via social media, messaging apps, e-mails and unexpected calls that appear genuine.

The risks, as mentioned in the general overview of online scams, are always financial losses, identity theft and emotional stress. Here again, the European authorities have drawn up a list of targeted advice, with the aim of protecting the user as much as possible. "Never share personal or banking information", they write, always suggesting to "stop and think before acting". In addition, one should always 'carefully check the source or identity' of those who contact us and be 'ware of possible deception based on Ia'. According to the authorities, then, it is advisable 'not to install remote access software or share your screen', 'keep devices and accounts secure', 'be cautious of unexpected and time-limited investment opportunities' and, finally, 'think before sharing information on social media'.