Over the past decade, cryptocurrencies have taken the financial world by storm and revolutionized decentralized financing. These virtual coins offer users countless new opportunities for investments. 

Their rise, however, has given devious minds cunning ideas to deceive investors. The number of schemes aimed at unwary users is constantly growing, unfortunately. 

Fraudsters saw popular exchanges as a perfect ruse to conduct their wrongdoings. Out of well-known names, the Kraken platform is heavily abused. This article discusses Kraken scam types. Learn how to detect these ploys and safeguard your funds.

What is Kraken?

Kraken is among the oldest cryptocurrency exchanges in the world. Established in 2011, Kraken US has fortified its position as a reputable platform with tight security and reliability. It allows users to buy and sell numerous crypto coins like Bitcoin, Ethereum, and Ripple. 

Kraken boasts various security measures such as two-factor authentication and cold storage for the majority of funds. On top of that, the exchange prioritizes regulatory compliance, actively engaging in establishing rules for digital assets under whichever jurisdiction it operates.

As of writing, Kraken holds licenses in its home country of the United States, the United Kingdom, and Australia.

Is Kraken a Legit Crypto Exchange?

Although Kraken seems like a legitimate crypto exchange. It has a solid security track record. However, the company had its issues with regulators. Also, there is a Kraken Reddit thread where users express concerns due to alleged shady practices from the exchange.

Due to the failure to properly set up geo-location, Kraken provided services to users in Iran, a country under sanctions. It resulted in a lawsuit U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), which the exchange eventually settled and paid $362,158, plus an additional 100,000 USD. 

In another case, the Securities and Exchange Commission (SEC) charged Kraken’s subsidiaries for offering an unregistered crypto staking program, resulting in the company having to pay 30 million dollars. 

Common Ways Scammers Steal Crypto via Kraken

After doing some research, we outlined three main methods scammers use to deceive victims through Kraken. Namely, they hide behind fake brokers, run phishing scams, or cunning impersonation schemes.

Let’s take a closer look at each of these and explain how they work. We hope to list some red flags you ought to look out for to avoid falling prey to these Kraken crypto scam operations.

Fake Brokers

Financial swindlers often pretend to be Kraken’s customer support or crypto brokers. They shamelessly offer to help you place trades. In reality, your money is what they’re after. 

Per the Kraken website, “They will often guarantee profits and will request that you only fund your account with cryptocurrencies.” The Kraken prices they present are likely fake.

As soon as a suspicious message pops up, asking for your login details or private keys, be on guard. If you cede this info to the crooks, they can access your account and deplete your balance effortlessly. Therefore, refrain from sharing personal security information.

Phishing Scam

Phishing scams involve a fake Kraken site. Users search for the exchange and click the top link, not knowing they have entered a fake site. This illicit page is supposed to collect your login details. They’re designed to resemble the real Kraken page, but their web address is different. That’s what you need to look out for. 

Another phishing method is sending you unsolicited emails or texts that ask you to click a link or log in to your account. These imposters pose a legitimate exchange. 

Beware as there are deceitful Kraken mobile apps as well. Again, the goal is to get your info such as login data. You must remain cautious and double-check everything.

Impersonation Scam

Cyber con artists may impersonate Kraken customer service or other crypto brands and individuals. They typically make contact via email or social media, offering one-off investment opportunities or assistance. 

The goal of their fraudulent scheme is to deposit your funds onto an exchange, convert it into crypto, and then withdraw it to their wallet. That’s why it’s crucial to verify the identity of the person contacting you. Also, be wary of remote access scams. 

“Never give a third party access to your devices. Software such as Anydesk and Teamviewer allows impostors to take control of your device and access your sensitive information,” Kraken stresses.

How to Protect Your Crypto and What to Do If Scammed?

To protect yourself from falling victim to duplicitous digital thieves, we recommend you stay vigilant all the time online and remember the following steps:

• Tighter security measures – Enable two-factor authentication on your account and set a stronger password. Consider switching to Kraken Pro. The difference between Kraken and Kraken Pro is that the latter offers an additional security layer.
• Look out for phishing and imposter scams – Double-check URLs, recheck emails and social media messages, verify the identity of the sender, and never give out your login details on anonymous websites.
• Secure your private keys – Never share your private keys. These are the only tools that guarantee the safety of your funds.
• Read forums – Keep yourself updated on the latest crypto scams and the fraudulent entities running them. Check user reviews as well.

If you suspect that you’ve fallen victim to a Kraken scam, contact the exchange immediately and notify the support team about the incident. Try to protect your wallet from further fraud attacks. They should be able to help you.

If not, inform the relevant financial market authorities and local law enforcement. Last but not least, book a free consultation with Scam Brokers Reviews. Our team is skilled at using CipherTrace, a powerful crypto-tracking software.

By utilizing the program, we can trace the crypto transaction to a wallet within a certain exchange, enabling you to request a refund from the said exchange and recover your hard-earned funds.

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