There are many ways that cryptocurrency scams are carried out and one of them is by means of impersonation. This is common social media platforms with many prominent individuals such as Elon Musk being impersonated.

In a bid to avoid a similar case, Monex, the parent company of Coincheck, an exchange that recently suffered a hack, has warned users about impersonators that are targeting them.

In their blog post, the firm spoke about the scam which involves the customer receiving a phone call from someone claiming to be “Monex Coin Management.”

The user is then told to call an automated Trading system related to Monex. However, Monex has clarified that they do not have any such system.

“The Monex Group and (subsidiaries) do not have any relation with the above company,” the post says.

This scam deliberately targets newer cryptocurrency users who are more likely to fall for it. The aim is to steal the Cryptocurrency that is stored in the user’s hot wallet.

It is not uncommon for scammers to target users of large exchanges using this method.

Monex, however, is only just recovering from a hack that occurred a few months ago where almost $530 million was lost and does not want any more incidents of users’ funds going missing.

Since the hack, the exchange has been able to secure a license to operate in Japan and has started issuing refunds to customers. Coincheck was acquired by Monex for $33.5 million in April 2018.

Sadly, this isn’t the first or last time that users will be at risk of scammers.

One of the reasons for this is that fact that crypto world is relatively new and thus, many aren’t properly informed about it. Newer users are more vulnerable than others.

This mirrors the internet and credit card fraud that was very rampant when internet banking and the use of credit cards first became mainstream. With time, however, they have become less effective and easier to spot.

Crypto firms and exchanges have, so far, taken steps to educate their users about these scams.

Monex has put out an official statement to users to warn them and many crypto exchanges release guidelines for new and existing customers to inform them of the common ways by which scams are perpetrated.

It is only hoped that in the near future, the problem of scams will be a thing of the past.

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