Amid Dogecoin rally, users need to be careful not to fall prey to cryptocurrency giveaway scams

• The Dogecoin team has warned against promises of crypto giveaways or schemes that promise multiplication of wealth.
• Many users fell for the trick as rumours suggested Elon Musk could promote the cryptocurrency in a big way.
• It’s suggested that users don’t fall for these claims and transact only with people they know.

Dogecoin had a very turbulent ride in the last few days as Tesla’s founder Elon Musk went live on American television show Saturday Night Live. The reaction to his “hustle” garnered a mixed response, something which was easily visible on the cryptocurrency’s charts. While enthusiasts were glued to the screen, trying to make sense of the chaos, many with sinister intentions had wreaked havoc on social media sites.

The Dogecoin team has warned against promises of crypto giveaways or schemes that promise multiplication of wealth. These are essentially scams that are trying to take advantage of users amid a volatile period. Social media platforms like Twitter, YouTube, and Facebook are the most vulnerable platforms since it’s easier to use bots and create a short-lived hype.

Illegitimate accounts constantly flood the forums with claims of a scheme that it will multiply one’s Dogecoin holdings. The unsuspecting user is then asked to send some money to an anonymous address and they expect a multiplied sum to be returned soon.

While this may sound too naive, many users fell for the trick as rumours suggested Elon Musk could promote the cryptocurrency in a big way. Nobody knew how he’d do it, allowing scam artists to play ‘Elon Musk’ and get richer.

More sophisticated methods were also deployed by criminals to capture the attention of users on YouTube. During the Saturday Night Live broadcast, live videos that unofficially streamed the show were targeted with ads saying, “Elon Musk has devoted 500,000,000 Doge to be distributed to all Doge holders. Anybody can get some, just visit the website.”

When the user completed the transfer, the Dogecoins were credited into the scammer’s wallet. Once the transfer is done, there’s no way money can be recovered without law enforcement or direct access to the ledger. This is actually a feature that offers privacy but takes away the ability to investigate.

TRM Labs, a blockchain intelligence provider, stated that the affiliated wallets received almost 10 million Dogecoins. Many of these coins have been purposely transferred by the scammer itself to show that a large volume isn’t suspicious for the account.

It’s suggested that users don’t fall for these claims and transact only with people they know. These “get rich, quick” schemes should always raise a red alarm. The modus operandi isn’t exclusive to just Dogecoin and is used for Bitcoin, Ethereum, and more.

Last week, Realme India’s Twitter account was compromised and its name was changed to “Tesla”. It pretended to be an official account and asked users to transfer Bitcoins to an obscure address. It was a high-level scam that was quickly brought under control by the brand.

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