Here I am again, with another public service announcement post. It honestly saddens and angers me when I read these kinds of posts of how people have fallen victim to some crypto related scam. I was fortunate to learn the "easy" way when I first got into crypto as I had learned from more experienced veterans that you can't and shouldn't believe what you see. Instead, you need to verify rather than trust what someone says. That's why I make this content to help prevent others from falling victim to these scams.
Crypto is still the Wild West of finance and so being vigilant about what's real and what isn't is a must. Knowing how to properly secure AND keep your coins is so imperative to your financial success in crypto.
This is why Warren Buffett's rules to investing are:
1) Don't lose money
2) Don't forget about rule #1
In addition to this, this is why a lot of traders say that a key factor to one's success in trading is risk management. If you have nothing to manage, you're out of the game.
In this particular method, the scammers target unsuspecting newcomers to the space with the hardware wallets. Essentially the way this scam works is:
1) purchase hardware wallets from legitimate websites
2) open them up and set up the device with a new private key
3) write down a copy of the private key for their own keeping
4) leave a card with the same private key along with the "PIN number" that was set up and to tell the buyer to use that private key
5) repackage the device
6) sell units on their own store at a discount
7) wait until unsuspecting victims buy and use the device that's already been set up for them
8) withdraw their crypto from the wallet via backdoor
This is why I always tell people to buy the wallets straight from the manufacture's website. That way you know with a high degree of certainty that the device hasn't been tampered with in any way.
Here's a short 3 minute video on exactly what I mean.
If you're looking to buy yourself a hardware wallet, definitely buy it straight from the manufacture's website and no where else! This is the link that I used in the video.
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