At Elbaite, Australia's pioneering self-custody cryptocurrency exchange, we are committed to safeguarding our users in the dynamic world of digital currencies. Understanding the risks associated with cryptocurrency trading and ownership, including potential scams, is crucial. Our mission is to provide a secure trading platform and empower our users with the knowledge they need to trade confidently and safely.
Elbaite does not provide financial advice, and is not affiliated with any third party advisors, traders or investment companies. We recommend that all users exercise caution before engaging in any trade or investment, especially when suggested by a third party. If someone is providing you with financial advice, check their credentials. An Australian financial adviser should be found on ASIC’s Register.
As an emerging technology, it's crucial for anyone starting their cryptocurrency investment journey to have a foundational understanding of its technical aspects. A lack of technical knowledge can leave you vulnerable to scams and exploitation.
It is recommended that you familiarize yourself with some key technical concepts and practices. This isn't just about being tech-savvy; it's about safeguarding your investment and protecting yourself online.
Here’s a simple checklist to guide you:
Customers of Elbaite provide their crypto wallets. Elbaite does not generate or provide any wallets for customers.
There are specific services that you can use to create your wallet, these are known as wallet providers. Each type of wallet provider has a different method of wallet generation, encryption and cybersecurity risk. Some examples of wallet providers are:
The wallet provider will generate the private key and public key for that wallet.
If you do not know your wallet provider's name and were only provided with a wallet address by someone else, then you might be the target for a scam. Scammers will often generate the wallet on their end using a wallet provider and will provide the public address to their potential victim.
If you purchase cryptocurrency through Elbaite, you must provide your wallet address. If you are purchasing crypto, this is the destination address to which the cryptocurrency will be transferred irrevocably when payment has been received. You should own and control the wallet address you use on Elbaite. You should never use a destination wallet address that has been given to you by a third party.
Cryptocurrency transactions are irreversible and immutable due to the nature of blockchain technology. Once a transaction is executed, it cannot be undone. If someone has given you a wallet address to use on Elbaite, then, when you have completed your purchase, the crypto will be transferred to a wallet that belongs to or can be accessed by the person who gave you its address. If that person is a scammer, then the purchased crypto will be under their control.
Knowing the private keys to your crypto wallet equates to ownership and control of the cryptocurrency held in that wallet. At Elbaite, we prioritize your security and autonomy, so we never request, store, or handle your private keys. We only require your public wallet address, also known as the destination address. Be aware that if you're using a crypto wallet where the private keys were provided to you by someone else, then that person might still be able to access your wallet. If that person is a scammer, then the purchased crypto will be accessible to them.
Examples of Wallet Providers
Trezor, Ledger Nano
Metamask, Trust Wallet
Scamming is not new, but it has reached alarming new heights, facilitated by pervasive internet and mobile communications, social media, economic conditions and artificial intelligence. Scammers can be engaging, polite, charming, persuasive, funny, friendly, interesting, and seem credible. Scammers aim to deceive you to steal your money or identity. They will exploit all and any vulnerabilities without a second thought for your well-being. Be on your guard.
Scammers are criminals who are trying to trick you into giving them something they want: your identity, information about you, access to your Elbaite account or bank accounts, or demanding transfer of value for a personal, charitable or threatening reason.
Targets are lured with the promise of high returns through fake investment opportunities.
Scammers create fake romantic relationships to manipulate victims into sending money, often for fabricated emergencies.
Product & Services Scams
Victims pay for products or services that are never delivered or are significantly different from what was advertised. Payment is never refunded.
Threats and Extortion Scams
Victims receive threats to expose personal information or inflict harm unless a payment is made. Note that the scammer might not even have any personal information about you. All they need to know is that information has been leaked, eg through publicized cyber hacks like Medicare and Optus.
Scammers pose as trusted officials or authorities to trick victims into sending money or revealing personal information.
Scammers also pose as people you know - a Facebook contact, or a child or grandchild in distress.
A charity scam involves a fraudulent entity or individual falsely claiming to represent a charitable cause to solicit donations from unsuspecting donors. These scams often exploit current events or humanitarian crises to appear legitimate.
What Not to Do: Do not send money or personal information without verifying the legitimacy of the charity. It is always best to check the ACNC Charity Register to ensure a charity is legitimate before donating to them.
Scammers have used all of these methods to engage would-be victims:
Scammers will continue to use these and other scenarios. More are invented and perfected every day.
Don’t act quickly without thinking. This makes you the scammer’s ideal victim.
Account Setup by Others: Don’t let someone else set up your Elbaite account, MFA or digital wallet.
Sharing Sensitive Info: Never reveal login credentials or private keys.
Unknown Wallet Addresses: Don't add crypto wallet addresses you don't control to your Elbaite account. Simple questions to ask to ensure that you control your wallet: Do I know the name of the wallet provider that generated this wallet?Do I know the private keys? Do I know where the private key is stored? Do I know who has access to those private keys?
Impulsive Trading: don’t act on demands, tips or “advice” without research and validation.
Unexpected contact: don’t take advice or instructions from someone you don’t know or can’t verify independently.
If you encounter any suspicious activities, we encourage prompt reporting to authorities such as Scamwatch and ReportCyber. At Elbaite, while we strive to minimize risks through our secure platform, being vigilant and reporting suspicious activities is a shared responsibility that enhances the safety of the entire crypto community.
We recommend leveraging Australian government resources like Scamwatch and the ACSC to stay informed about scam awareness. These resources complement the secure and user-centric trading experience we offer at Elbaite, ensuring our users have access to comprehensive information for safe trading practices.
Other useful sites include:
Elbaite is committed to providing extensive educational resources, including informative blog posts, to deepen our users' understanding of the crypto market and scam prevention - which you can find on our official website, Elbaite Learn. These resources are designed to enhance your trading knowledge and safety.
Should you have any queries or concerns regarding potential scams, our dedicated customer support team is here to assist. Elbaite takes a proactive approach to protecting our users, offering support and guidance to ensure a secure trading experience.