Buying digital assets for fiat currency is not something out of science fiction movies anymore, and due to the worldwide spread of cryptocurrency, it has become easier than ever. Nonetheless, the number of scammers hunting for novice and inexperienced traders has also increased greatly.
How to buy crypto with credit card and not fall for the tricks of cybercriminals? Let us explore some of the most common scamming schemes so that you can avoid financial losses and personal data theft.
Fraudsters tend to ‘go with the flow’ and use various methods of deception, based on the latest market trends. From hidden commissions to duplicate platforms and phishing attacks – the schemes are getting more elaborate and creative each day. It is important to be aware of the dangers that may arise when you learn how to buy crypto with credit card and protect your funds and personal information.
1. Fake exchange platforms and crypto-related websites
Fake websites of popular crypto-related services are probably one of the most common schemes used by cybercriminals. They copy the interface of well-known service providers and offer to purchase crypto assets with a credit card at a very beneficial rate. An individual enters their bank card details, and the funds either completely disappear or a much larger amount of money is debited.
Common signs of a fake exchange platform:
- Fake comments and no real-life reviews.
- Suspiciously low commissions or ‘special promotions’ that seem too good to be true.
- No customer support or slow responses to inquiries.
- The website requests too much personal information.
Note! Before thinking about buying crypto, make sure to verify the domain name, search for real reviews and comments from community members, and avoid offers that claim much lower rates than the market average.
2. Phishing attacks and data breaches
Phishing is a method of identity theft where cyber attackers create websites posing as legitimate platforms. When deciding how to buy crypto with credit card, the user enters their payment details and up until the very end of the transaction does not realize they have become yet another victim of a scam.
Common signs of phishing:
- The website differs from the original service by one or more letters in the address.
- You are prompted to follow a link sent through a messenger or email.
- The interface of the website has unusual fonts, errors or spelling mistakes.
- You are asked to enter personal data that is not usually required.
Note! To buy crypto with a credit card safely and without losses, always check the URLs, never follow suspicious links and use only official applications.
3. Hidden fees and inflated commissions
Some dubious crypto-related service providers encourage users to use credit cards for their purchases, but they fail to disclose enormous hidden fees. The user agrees to complete the purchase, sees the total amount, yet ends up paying a lot more.
What causes this?
- The service is reluctant to show the total amount of the applicable fees until the moment of debiting.
- Double conversion: for instance, a dollar is charged from the card, then exchanged again into another currency at a less favorable rate.
- Moreover, inflated transaction processing fees are charged.
Note! Before deciding how to buy crypto with credit card, get acquainted with the terms and conditions and check the total amount due before completing the payment. Always avoid services that do not offer transparent calculations.
4. Stolen cards and fraudulent chargebacks
In this scheme attackers use the details of stolen credit cards to buy crypto assets and then issue a chargeback, alleging the payment was made without consent. Consequently, the trading platform blocks the accounts of unsuspecting users or cancels the transactions.
Common signs of an illegal scheme:
- You are offered the opportunity to acquire cryptocurrency with a bank card through a third party that will process the payment “as quickly as possible.”
- Unexpectedly, the service requires extra identity verification.
- There is a delay in crediting funds after the transaction has been completed.
Note! To avoid these problems, use only trusted services and do not make payments through dubious intermediaries.
The desire to learn how to buy crypto with a credit card can be associated with serious risks if you are not cautious. Fake exchange platforms, phishing websites, inflated commissions and refund schemes are the main methods used by fraudsters. Remember, the safety of your assets is always more important than transaction speed. If you carefully check the details before buying crypto, you can avoid risks and preserve your finances.
