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10 Ways You Can Avoid Phishing Scams

By June 1, 2021May 10th, 20236 minute read

Scams are rampant everywhere online, and cryptocurrency exchanges are no exception. As you set foot in the sea of cryptocurrencies, you expose yourself to phishing scams and cryptocurrency frauds. India is among the top 3 countries targeted for phishing.

Of course, no one wants to fall prey to a phishing scam. But that won’t stop the scams from happening. Phishing scams have been around nearly since the origin of the Internet. With the advent of cryptocurrency, they aren’t leaving us anytime soon. Most cryptocurrency frauds are just modern versions of classic scams. 

Bitcoin, Ethereum, etc., are undeniably the hot property in online markets. While it is true that an intelligent investor stands to make big profits out of them, the odds of landing quick riches can blind some people, luring them straight into scams. 

Cryptocurrency scams are now the standard way for scammers to trick people. Here’s the common factor: a scammer always wants you to transfer money or pay with Bitcoin or any other cryptocurrency. And once you part with your money, there’s no seeing it again.

So if you come across a text, email, or a message on social media that tells you to pay with Bitcoin, know that it’s a scam. They will guarantee you money; promise to double it quickly, or say you’ll get free money in dollars or cryptocurrency- none of which has any truth to it.

Here’s a list of Do’s and Don’ts to shield yourself from cryptocurrency frauds and phishing scams as you join in the future of cryptocurrency.

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  • Don’t place money in an online company/startup if you don’t truly understand its modus operandi. 
  • Don’t consider investing in cryptocurrency money that you can’t stand to lose. 
  • Don’t purchase e-currencies solely based on anonymous tips that you received online.
  • Don’t put money into accounts shown as “IRS approved” or “IRA approved.” Though some self-directed IRAs permit investment in cryptocurrencies, the Internal Revenue Service does not endorse or review IRA investments. 
  • Don’t disclose your “private keys” — the long letter-and-number codes that are keys to access your cryptocurrency — with anyone. Keep them protected.


  • Do know the risks involved. While you might not be definitely scammed, cryptocurrency trading is known for its volatility.
  • Do resist the pressure to buy impulsively. Scammers often attempt to create a false alarm around a seemingly fresh cryptocurrency.
  • Do check out the cryptocurrency dealer and the future contracts deeply before you buy. 
  • Do thorough research on any cryptocurrency platform or digital wallet provider before giving any credit card information, transferring money, or revealing any of your data.
  • Do carefully view any deal with an online wallet-providing site. Dissimilar to banks and credit card companies, they might not take total liability for replacing your money in case it’s stolen.

Phishing Scams

Phishing Scams

1. Be aware of Phishing Techniques – The virtual world has new phishing scams blooming every now and then. Without being well aware of these new phishing techniques, you could unwittingly be a victim of one. 

Be on the lookout for news on fresh phishing scams. Especially in the case of cryptocurrencies, which wholly thrive online, you need to brace yourself.

2. Think Before You Click! – It’s okay to click on links on trusted cryptocurrency exchange sites. However, clicking on random links that arrive in emails or instant messages is the shortcut to a trap. Before clicking on them, ask yourself, “Do they lead where they are supposed to lead?”.

A phishing email seems to be from a genuine exchange or trading company. When you click the website link, it looks exactly like the actual website, except for a few loopholes. 

For instance, the email might ask you to fill in personal information but not include the name or email id column. Note that most phishing emails begin with “Dear Customer,” so beware of such emails. When in doubt, move straight to the source rather than clicking the possibly unsafe link.

3. Install an Anti-Phishing Toolbar – Add an anti-phishing toolbar to your Internet browsers. They run smart checks on all the sites you visit, including the cryptocurrency ones, and compare them to well-known phishing sites. The toolbar will alert you about a malicious site. This is a free layer of protection against phishing scams.

4. Verify a Site’s Security – They say it is better to be safe than sorry. Before offering any kind of personal or financial information online, ensure that the site’s URL starts with “https,” and there is a closed lock icon present near the address bar. 

Check for the site’s security certificate too. If you receive a warning stating that the website you are about to open may contain malicious files, do not open it. Search engines may show certain links, leading users to a phishing webpage that offers low-cost or free crypto exchanges. If you make trades or purchases at such websites, you are saying goodbye to your cryptocurrency reserves.

5. Check Your Online Accounts Frequently – Even if you don’t exactly need to, check out each of your online cryptocurrency accounts regularly. Change your passwords repeatedly. Personally review statements of your cryptocurrency accounts and check every single entry carefully to rule out the occurrence of fraudulent transactions.

6. Update Your Browser – Security patches are continually issued for browsers. They cover up the security loopholes that phishers and other hackers inescapably find and misuse. As soon as you see that a browser update is available, download and install it.

7. Use Firewalls – Employ two distinct kinds of farewells: a desktop firewall and a network firewall. When used together, they decrease the probabilities of hackers and phishers entering your computer through the route of the online cryptocurrency trades you made or wallets you acquired.

8. Beware of Pop-Ups – Pop-up windows often disguise as legitimate elements of a cryptocurrency website. More often than not, they are phishing attempts. Block pop-ups or allow them on a case-by-case basis. If you encounter one, don’t click on the “cancel” button(it can be fatal); instead, click the small “x” in the upper corner of the window.

9. Never Give Out Personal Information – A thumb rule-never share personal or financially sensitive information over the web. If you are tempted, visit the cryptocurrency trader or company’s main website in question, get their number, and make a call. Phishing emails mostly direct you to pages where entries for financial or personal information are needed. 

10. Use Antivirus Software – Unique signatures included with antivirus software guard against recognized technology knotholes. Keep your software updated. New keys are added almost all the time since new scams come into existence all the time. Firewall protection saves you from malicious files by blocking the attacks. Antivirus software scans every file coming through the web.

Paying heed to the points mentioned above, you can enjoy online experiences without fear. However, remember that there is no one fool-proof way to avoid phishing attacks.


When investing in cryptocurrency startups and exchange platforms, know that you are running the risk of losing your cryptocurrency investments. Before trusting digital cryptocurrency companies and startups, ensure that they’re blockchain-powered, as in, they track detailed transaction data. Companies should define their digital currency liquidity and ICO rules. If the startup you’re investigating lacks any of these characteristics, think your moves through.

WazirX goes the extra mile to safeguard you from phishing scams or cryptocurrency frauds. It stores about 95% of your funds in offline cold storage. 

We suggest you:

  1. Use only the official website or an app downloaded from the play store or app store to log in and make trades.
  2. Enable the two-factor and OTP authentication feature.
  3. Never ever disclose or share your account details with anyone, not even with people serving WazirX.
  4. Never use public wifi to access your data.

Visit the Playstore or App Store to quickly download our app and get it up and running!

Further Reading:

How to Spot a Cryptocurrency Scam?

5 Cryptocurrency Scams and How to Deal With Them

Is Blockchain Safe? Does Blockchain Have A Future?

Bitcoins in India: Challenges and Opportunities Ahead

Frequently Asked Questions

Is Ethereum Safe To Invest?

The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.

How Safe Are Cryptocurrencies?

Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.

Is Pi Cryptocurrency Safe?

Pi Network captured the crypto community’s interest even before it officially debuted. Its innovative mobile mining approach and user-friendly design simplify crypto adoption for a broader audience.Some users see this as a chance to get engaged in the crypto from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.

Which Cryptocurrency Is Best To Invest In 2021?

Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.

How Many Cryptocurrencies Are There?

There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.

Is Crypto Legal In India?

Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India

How To Invest In Cryptocurrency Stocks?

Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.

Are Cryptocurrencies Legal In India?

In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.

How To Invest In Cryptocurrency?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.

Is Cryptocurrency Banned In India?

No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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