security

At NAX, ensuring the safety of our customers is our highest priority. In the constantly evolving world of fraud, we are committed to protecting you from suspicious activities and fraudulent schemes.  

Cryptocurrencies, while innovative and beneficial for many, can also be used in fraudulent activities and scams due to their anonymous nature and the irreversible nature of transactions. Once a cryptocurrency transaction is completed, it cannot be reversed, making it an attractive tool for scammers. Users should remain vigilant, conduct thorough research, and exercise caution when dealing with cryptocurrencies. Always verify the legitimacy of any platform, offer, or individual before proceeding with transactions. Remember, if something sounds too good to be true, it probably is. Stay informed and protect your assets. 

To assist you in staying informed and securing your assets, we’ve created a helpful fraud prevention guide. By learning about different types of scams, you can be more equipped to recognize and steer clear of them. 

Charity Scams 

Scammers may pose as representatives from fake charities or disaster relief organizations, asking for donations. These scams often occur after natural disasters or during the holiday season. 

Red Flags: 

• Unsolicited requests for donations, especially from unknown organizations. 

• High-pressure tactics to donate immediately, often using emotional appeals. 

• Lack of transparency about how donations will be used or refusal to provide tax receipts. 

• Requests for donations via unconventional methods, such as Bitcoin, gift cards, or wire transfers. 

Rental Property Scams 

Rental scams occur when a property owner misrepresents themselves, the rental property in question or the terms of a lease to obtain money for a fraudulent offer.  

Red Flags: 

• Listings that lack detailed property information, such as floor plans or the exact address. 

• Landlords or agents who are unavailable for in-person viewings or who offer excuses for why the property can only be rented sight unseen. 

• Payment requests via non-traditional or untraceable methods, such as Bitcoin or gift cards. 

• Listings that feature the same photos or descriptions as other suspiciously similar listings in different locations. 

Fake Online Stores 

Scammers set up fake e-commerce websites or social media shops that offer goods at unrealistically low prices. Once the payment is made, the goods are either never delivered or are of poor quality. 

Red Flags: 

• Online stores offering luxury goods at prices significantly below market value. 

• Lack of detailed contact information, such as a physical address or phone number. 

• Payment options limited to untraceable methods, such as wire transfers, Bitcoin, or gift cards. 

• Reviews or testimonials that seem generic, overly positive, or duplicated across multiple sites. 

Investment Schemes 

Investment fraud happens when people try to trick you into investing money. They might want you to invest money in stocks, bonds, notes, commodities, currency, or even real estate. A scammer may lie to you or give you fake information about a real investment.  

Red Flags: 

• Promotions or advertisements promising unusually high returns with minimal risk, often appearing on social media or through unsolicited emails. 

• Lack of detailed information about the investment, such as how profits are generated or where the funds are being invested. 

• Requests for personal financial details, such as bank account numbers, before providing full details of the investment opportunity. 

• Inability to provide verifiable references or proof of past successful investments. 

Celebrity Impersonation Scams 

Fraudsters often use high-profile names to endorse dodgy investment, cryptocurrency and retirement schemes that sound too good to be true. 

Red Flags: 

• The celebrity or their supposed representative initiates contact through private messages rather than official, verified social media accounts. 

• Requests for secrecy, claiming that the celebrity does not want the issue to be publicized. 

• Sudden escalation from casual conversation to financial requests, often with emotional appeals. 

• Inability to verify the identity of the person claiming to be the celebrity, such as refusal to provide proof or engage in live video chats. 

Fake Job Offers 

Recruitment scams typically involve criminals luring victims with the promise of extra work or income, before conning them out of sensitive personal information. 

Red Flags: 

• Job descriptions that are vague or lack specific details about the role and responsibilities. 

• Employers who avoid providing official company contact details or insist on conducting interviews via non-professional channels like WhatsApp. 

• Companies that request upfront fees for training, materials, or background checks to be paid in Bitcoin or other non-traditional payment methods. 

• Job offers that come with a requirement to share personal banking information or complete financial transactions as part of the role. 

Utility Bill Payment Scams 

The scams tend to involve criminals posing as representatives of energy companies or the government to obtain victims’ personal or financial information.  

Red Flags: 

• Calls or messages that come from suspicious or unfamiliar phone numbers, often appearing as private or unlisted. 

• Requests for payment using methods that the utility company doesn’t typically use, such as Bitcoin, prepaid debit cards, or wire transfers. 

• Bills that contain incorrect information, such as the wrong account number, address, or customer name. 

• Pressure tactics to pay immediately with threats of legal action or arrest if the payment is not made. 

Used Vehicle Fraud 

This scam is where the victim is tricked into making large payments to an account posing as a legitimate payee to sell a vehicle that does not exist. 

Red Flags: 

• Sellers who refuse to meet in person and insist on completing the transaction entirely online or through third-party intermediaries. 

• Vehicles listed at prices significantly below market value with excuses such as an urgent need to sell. 

• Sellers who claim to be overseas or in remote locations and who require payment before the vehicle can be delivered. 

• Listings that use generic photos or photos of the vehicle that appear on multiple listings across different platforms. 

Romance Scams 

Romance Scam is when you think you’ve met your perfect partner online, but they aren’t who they say they are. Once they’ve gained your trust, they ask for money for a variety of emotive reasons.  

Red Flags: 

• Individuals who avoid video calls or in-person meetings despite prolonged communication. 

• Emotional manipulation, such as claims of love or deep connection after a short period of interaction. 

• Requests for money for emergencies seem to escalate in frequency and urgency over time. 

• Inconsistent personal details or stories that change over time, raising doubts about the person’s identity. 

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. 

Red Flags: 

• The scammer uses fear tactics, threatening to release sensitive information, harm your reputation, or hurt someone you care about unless you comply with their demands. 

• The scammer insists on receiving money or cryptocurrency quickly, often using untraceable methods like Bitcoin, to avoid detection by authorities. 

• The scammer may claim they have hacked into your accounts, accessed your private information, or have compromising photos or videos, often without providing any proof. 

• The scammer may demand that you do not contact law enforcement or anyone else, trying to isolate you and prevent you from seeking help. 

• The scammer’s threats are often vague and generic, without specific details that would confirm they have the compromising information they claim. 

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 to lure in new victims who don’t know better, and it can be hard to determine what’s real. 

Red Flags: 

• Legitimate giveaways never ask for sensitive personal information (like credit card numbers) or require payment to claim a prize. 

• Offers of extravagant prizes, such as large sums of money, expensive electronics, or luxury vacations, are often too good to be true. 

• Scammers may avoid providing clear details about the giveaway, such as official rules, sponsors, or how winners will be selected, and may not allow you to verify their legitimacy. 

• Scammers often create a sense of urgency, claiming that you must act immediately to claim your prize, which pressures you into acting without thinking. 

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 say they’re from the government or law enforcement to gain 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 to convince you of some other storyline. In the end though, the goal is getting your crypto no matter which lies they use. 

Red Flags: 

• Unexpected contact from individuals claiming to be lawyers, especially if they pressure you to act quickly. 

• Claims of legal issues that seem out of the ordinary or unfamiliar to you. 

• Requests for personal information, or banking details, under the pretext of legal assistance. 

• Lack of verifiable contact information, such as an official email address or law firm website. Phone numbers that appear to be legitimate government numbers but fail to connect when dialed back. 

• Demands to resolve supposed issues without the option to discuss them in person at a government office. 

• Unusual payment methods requested by someone claiming to be from the government, such as Bitcoin or gift cards. 

• Inconsistent or broken English in written communication, often containing grammatical errors. 

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. 

Red Flags: 

• Urgent or threatening language in emails or messages, pressuring you to act quickly or face consequences, like losing access to an account. 

• Suspicious email addresses or URLs that appear slightly altered, such as misspellings, extra characters, or domains that don’t match the official site (e.g., “amaz0n.com” instead of “amazon.com”). 

• Unsolicited requests for personal or financial information, such as passwords, credit card numbers, or Social Security numbers, often under the guise of verifying your identity. 

• Unexpected attachments or links in emails or messages, which could contain malware or lead to fraudulent websites designed to steal your information. 

• Poor grammar or spelling mistakes in communication, which is often a sign that the message was not sent by a legitimate organization. 

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. 

Red Flags: 

• Sudden, significant increases in trading volume and stock price without any substantial news or justification. 

• Aggressive promotion and unsolicited stock recommendations through social media, emails, or phone calls, often with exaggerated claims about the stock’s potential. 

• Lack of reliable information or financial transparency about the company, combined with a focus on low-priced penny stocks. 

• Erratic trading patterns and sudden insider selling by company executives or major shareholders after the stock price has been artificially inflated. 

• Frequent name or business model changes and a history of questionable management or lack of reputable institutional investors.