Protecting your Crypto SMSF From Scams
Common scams and tips to avoid them
By the end of 2022, Australians are expected to lose a total of $4 billion to scams, with investments reporting upwards of $270 million in losses. Australian Self Managed Super Funds (SMSFs) currently hold around $57 billion in listed trusts, $248 billion in listed shares, and $1.3 billion in cryptocurrency, so it comes as no surprise that they are being targeted by sophisticated scammers.
Digital Surge is very aware of scams in the cryptocurrency space and has developed extensive processes to help SMSF accounts stay ahead of scams. These include:
- Administering onboarding calls with new SMSF accounts to ensure the individual is comfortable with using the platform
- Completing verification and security calls before enabling crypto sends on customers accounts for additional security
- Automated and manual systems that scan our database to detect any suspicious activity
- Digital Surge’s Live Chat operates seven days per week to ensure customers always have a real person to talk with if they suspect there is an issue with their account. Digital Surge’s Customer Support Team is 100% Australian-based
- Two-factor authentication to provide an extra layer of protection to your account
Tips to avoid crypto scams:
☑️ Enable two-factor authentication on your Digital Surge account
☑️ Never give anyone remote access to your machine. This effectively gives the scammer full access to your computer, online financial accounts, and digital life
☑️ Don’t respond to or click on message links you think are pretending to be from Digital Surge
☑️ Never take any cryptocurrency project at face value — Always do your own research
Common scams to be aware of:
Investment Scams
Scammers may encourage you to buy cryptocurrency through a specific exchange while promising large pay-outs. They will offer to invest on your behalf and request that you send them funds for this. The data they present to you is fake and you won’t have access to your money.
Phishing Scams
Phishing scams were the most reported scam in 2021 with 71,308 cases reported. Phishing typically involves a scammer impersonating a company or person to retrieve your personal data (passwords, logins, personal information etc). Scammers often send emails with malicious links to a fake website to gather personal details.
Romance Scams
Starting online or on dating apps, romance scams commonly involve long-distance relationships. The scammer will try to gain your trust over time and will eventually start to convince you to send them money/crypto.
Mule Scams
A criminal may try recruit you as a money mule to transfer and disguise illegally obtained funds. The scammer may offer you a large sum of money in commission for simply receiving money and remitting it to another wallet or bank account.
Conclusion
If you are looking to acquire cryptocurrency with your SMSF, make sure you choose an exchange that does their diligence when it comes to scam prevention. Always have 2FA enable on your account, do your own research, avoid opening suspicious URLs/links and NEVER give out personal information (including private keys) to anyone online. If something seems too good to be true, it probably is.
If you have any concerns, please contact Digital Surge via Live Chat.
