10 Tips to Prevent Fraud and Stay Safe on the Decentralized Web

The emergence of the centralized web marks a marked technological breakthrough for humans. When Tim Berners-Lee invented the web, he didn’t know it would also be a tool for fraudulent activities. His innocuous invention was to project the world into a more civilized and interactive community where people could relate to one another regardless of their different geographies. Unfortunately, this has also attracted treacherous users who are starting to remove people from their assets.

By CNBC$5.8 billion was lost to fraudulent activities in 2021 alone, representing a 70% increase over what was reported in 2020. FTC He reported that around 2.8 million people are affected each year, and investment scams are consistently at the top of the chart.

Although there is no specific way to scam people on the internet, these internet scammers use typical schemes to milk people for their hard-earned dough. Their notable strategies range from phishing to fake lotteries, romance scams, and cat hunting as a result of identity theft.

So how can I prevent fraud and stay safe on the decentralized web (web 3.0)?

As fraud has always been about obtaining people’s wealth illegally, the most important thing for fraud on the web3 is to protect the digital wallet where your assets are stored. Following the tips below will ensure that your wallet is safe and secure from scammers surfing the web.

one. Make sure you download the official app or web extension

If you are downloading any web3 app or extension, make sure you download it directly from the website. Most scammers have cloned fake apps that you shouldn’t be a victim of. Check reviews, downloads and developer information to determine app uniqueness; This will raise some red flags if it’s a cloned app.

2. Never share your seed phrase

The seed phrase is used to recover or import your old wallet. If scammers get hold of your seed phrase, they can access your digital wallet with it on another device, change your wallet password, and get rid of your existence. To avoid being scammed in this way, check that your seed phrase is safe from prying eyes or unauthorized persons and never disclose it to anyone.

3. Always use a strong new password to secure your wallets and apps

Passwords are your pass for your wallets. It can be difficult to remember a set of unrelated passwords, so use a password manager to store your passwords for every app, web page, wallet, and other that requires a password.

Recycling the same password is risky. If one of your wallets has a password and you use the same password on all platforms, they can start trying them and log into your account. But if you use a different password for different wallets or platforms, knowing one password will not endanger the others.

4. Use 2FA—Two-Factor Authentication

Two-factor authentication is another security model that guarantees the protection of your accounts on platforms that use this authentication method. 2FA uses two different modes or layers to verify who is trying to get into your account.

When you log in to your account after providing your password, you will receive extra login codes, possibly an OTP (one time password) to verify that you have not been hacked. The OTP will be sent to your email inbox or mobile phone number that is expected to be accessed only by you.

5. Close hyperlinks or web links from cold emails

Cold emails are spontaneous emails that you usually receive in your mailbox. Scammers can send such e-mails with web links, when you click on these e-mails, your account security is compromised. They can also send a cold mail with malicious code at the base, so avoid clicking on them before clicking to read them.

6. Avoid downloading unwanted files

Scammers may ask you to download a jpeg file or PDF or documents. If it looks weird or even harmless, don’t click or download it. They are often replaced with malicious codes that can compromise your accounts and sometimes other wallets and accounts connected to your mobile device or computer.

7. Consider using a hard wallet to store your assets and secure the wallet

A hard or cold wallet is an external wallet that is not connected to the internet. Since the internet is prone to hacking, hackers have no way of gaining access to your hard wallet except while in custody.

8. DYOR prior to participating in any related monetary activity investment on web3

You’d better not neglect due diligence before investing. Before investing in any project, do your research until you are convinced that there is nothing to fear. If you still have doubts but want to take a chance, invest as much as you can afford to lose.

9. Avoid watery giveaways or excessive returns

Everyone loves gifts. Many scammers use these giveaways to lure users into their projects or illegal investment schemes. They may suggest excessive APR or APY to attract users from legitimate projects to their own projects. This is a marketing strategy for scammers, but a loss for victims who don’t suspect they will be scammed.

10. Consult official channels when necessary

If you are having difficulty navigating the web3 or anywhere, always consult the official customer support to keep you informed. This is better than asking for help from unauthorized people on Discord, Twitter or other social media platforms who may be scammers or cybercriminals.

It is very important to ensure the security of an account hosting your wallet. Research and stick to traditional or unconventional security measures that protect them from hackers or fraudulent activities.

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*All investment/financial opinions expressed by NFT Plazas are taken from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to thoroughly research any product before making any investment.

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