Technologies

Cryptocurrency pump-and-dump schemes: Everything you should know about these scams

Don’t be the victim of a rug pull.

Cryptocurrency fans view Bitcoin, Ethereum and Dogecoin as the future of money for the globe. The underlying blockchain technology allows crypto to work by creating a digital ledger that records transactions, which would seemingly create a safer form of currency. But where there’s money to be made, scammers aren’t far behind.

Crypto pump-and-dump schemes are designed to take advantage of people while making some big money for scammers. They generally involve influencers who receive financial incentives for telling people to buy a certain digital coin in order to raise its value. Once the value goes up, the scammers and influencers sell their coins and pocket the profits, while everyone else sees their investments lose value.

These schemes mark the latest twist in the ever-changing story of cryptocurrencies, which have created some millionaires while bankrupting others through their persistent volatility. Even Dogecoin, a cryptocurrency created as a joke, garnered mainstream attention thanks to high-profile figures such as Tesla CEO Elon Musk, who said at last week’s B conference that he «pumps, but doesn’t dump.»

He’s not the only one.

Earlier this month, popular esports organization FaZe Clan suspended multiple members who participated in a crypto pump-and-dump disguised as a charity drive while taking home tens of thousands of dollars.

With cryptocurrencies becoming easier to develop, scammers are taking advantage of people who have developed FOMO, or «fear of missing out,» and are looking to jump on new crypto coins in hopes of getting rich.

Here’s what you need to know about crypto pump-and-dumps.

What is a pump-and-dump scam?

A pump and dump is a securities scam usually involving stocks. Scammers create false hype about a stock in order to generate interest. Once investors start buying shares, the price of the stock goes up. When the price reaches a certain point, the scammers behind the fake hype sell all of their shares. This causes the stock price to plummet, which leaves new investors holding the bag.

The movie The Wolf of Wall Street portrayed the infamous pump-and-dump scam conducted by Stratton Oakmont investment firm in the ’90s.

How does this scam work with cryptocurrency?

It doesn’t work much differently than with stocks. A certain crypto asset is pumped up by people in order to make the value increase.

«As the prices rise, the pump creators dump their assets into the FOMO they’ve generated, resulting in a price crash that leaves the new buyers holding a bag of the assets that now have a lower value than they were purchased at, creating significant and often unrecoverable losses,» said Douglas Horn, chief architect of Telos Core Developers.

What’s different is what’s used for the pump-and-dump. Bitcoin, Etherereum and Dogecoin are well-established cryptocurrencies, and it takes someone with the following of Musk to increase or decrease their value. However, since creating a whole blockchain system for a currency takes a lot of time and effort, those knowledgeable about coding can create their own crypto tokens, which are digital assets using an already existing blockchain like Bitcoin or Ethereum.

These tokens, also referred to as coins, can be created easily like Shiba Inu, which the developers have referred to as a «Dogecoin killer» in a tongue-in-cheek manner. Developers can also create billions of these coins, which in turn means they go for fractions of a penny. One Shiba Inu token, for example, costs $0.0000065, so you can buy 100,000 tokens for less than $1.

Since someone can create billions of tokens easily that cost hardly anything, all that’s needed is to convince enough people to buy these super cheap coins. This can be done through Discord channels, forums or social media, or by getting an influencer to promote the coin in exchange for their own trove of coins.

If the scammers have 1 billion tokens worth $0.000001 then that’s only worth $1,000. But if they can increase the value of a token by just one decimal point, their stash of coins is now worth $10,000. If they dump it quickly, that’ll cause its value to crash.

Another small difference with the crypto pump-and-dump is the term. While it’s known as a pump-and-dump, in crypto circles the scam is referred to as a «rug pull,» as in the rug was pulled right out from under the investors. Part of enticing people to buy these super cheap tokens is to say they’re «rug-proof,» which means there are measures in place to prevent people who have a large number of coins from selling them within a certain time period.

What are some examples of cryptocurrency pump-and-dumps?

In July, four members of the FaZe Clan participated in a pump-and-dump for a token called SaveTheChildren. The pro gamers, along with other influencers, pushed the coin to their followers. Once the price increased, they began selling off the tokens they were given to be part of the scam, with some making an estimated $30,000.

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Another coin called SafeTrade was sold as «rug-proof» earlier this year. Once people started buying, the organizers sold their coins and left everyone else in the dust.

A 2020 study from the University of Technology Sydney and the Stockholm School of Economics in Riga found 355 instances of crypto pump-and-dump scams over the course of seven months. The organizers of these scams made millions.

Are pump-and-dump scams illegal?

For stocks, yes. For cryptocurrency, no.

The Securities and Exchange Commission is the government regulatory agency that investigates securities scams such as insider trading and pump and dumps. It doesn’t yet have similar rules for cryptocurrency, and doesn’t plan on implementing crypto regulations, at least for 2021.

How do you avoid crypto pump-and-dumps?

It’s important to understand if FOMO is contributing to your decision on whether to invest in a cryptocurrency. It may seem like everyone is getting rich off of Bitcoin or Dogecoin, but that’s not the case.

The next is to do your homework. Crypto coins or tokens can be created fairly easily by people who understand coding. If there’s a new coin that’s supposedly going to make you rich, do some web searches to learn more. The initial coin offering, or ICO, will have a «white paper» that offers details about the coin, who’s behind it, what their objective is and so on.

Then there’s a matter of the buzz that’s being generated. A way scammers get the word out about their coin is going into spaces where people are interested in cryptocurrency, such as Discord channels, social media and forums. If all of a sudden some person starts hyping up a brand new token, there’s a good chance they’re pushing a scam.

Be wary of any influencer who you may follow who hardly mentions cryptocurrency and randomly begins promoting a token. In the case of the FaZe Clan members, they promoted coins with a social media campaign and gave out thousands of free coins to their followers, which in turn entices other followers to buy coins — FOMO strikes again. If you’re going to take financial advice, get it from a professional and not someone whose claim to fame is being good at a video game.

Last, if you’re still interested in investing, then don’t invest more than you’re willing to lose. It’s possible that with the right timing, an investor could make money off a pump-and-dump, but it’s better to assume that the money you’re using to buy tokens will be gone forever.

Technologies

Microsoft Plans to Purge Passwords — Here’s How to Protect Yours

Come August 1, all your saved passwords will be gone from the Authenticator app unless you export them.

Microsoft is moving closer to a password-free future, and if you’re still using the Authenticator app to manage logins, big changes are coming fast. Starting Aug. 1, the app will no longer support passwords at all. This shift has already been in motion-new password creation was disabled in June, and autofill support was cut off in July.

For years, Microsoft Authenticator was a go-to for managing both multi-factor authentication and saved passwords. But now, it’s being refocused to support passkeys instead. That means your logins will soon rely more on things like PINs, fingerprint scans, or facial recognition-more secure, faster and harder to steal than a standard password. If you’re still relying on Authenticator for password storage, it’s time to move your data elsewhere before it disappears.

Attila Tomaschek, CNET’s software senior writer and digital security expert, said that’s not a bad thing, though.

«Passwords can be cracked, whereas passkeys need both the public and the locally stored private key to authenticate users, which can help mitigate risks like falling victim to phishing and brute-force or credential-stuffing attacks,» Tomaschek said.

Passkeys get rid of the risky password habits practiced by 49% of US adults, like using the same password for multiple accounts or using personal hints, according to a CNET survey. However, those convenient hints can pose a bigger risk to scammers, identity theft and fraud.

If you’re a fan of Authenticator and not sure where to start before the switch, here’s what you need to do before Microsoft’s Aug. 1 move.

When will Microsoft Authenticator stop supporting passwords?

Microsoft Authenticator houses your passwords and lets you sign into all your Microsoft accounts using a PIN, facial recognition like Windows Hello, or other biometric data like a fingerprint. Authenticator can be used in other ways, such as verifying you’re logging in if you forgot your password, or using two-factor authentication as an extra layer of security for your accounts. In June, the company stopped letting users add passwords to Authenticator.

Starting this month, you won’t be able to use the autofill password function. And next month, you’ll no longer be able to use saved passwords.

If you still want to use passwords instead of passkeys, you can store them in Microsoft Edge. However, CNET experts recommend adopting passkeys during this transition. «Passkeys use public key cryptography to authenticate users, rather than relying on users themselves creating their own (often weak or reused) passwords to access their online accounts,» Tomaschek said.

Why are passkeys a better alternative to passwords?

So what exactly is a passkey? It’s a credential created by the Fast Identity Online Alliance that uses biometric data or a PIN to verify your identity and access your account. Think about using your fingerprint or Face ID to log into your account. That’s generally safer than using a password that is easy to guess or susceptible to a phishing attack.

Passkeys aren’t stored on servers like passwords. Instead, they’re stored only on your personal device. More conveniently, this takes the guesswork out of remembering your passwords and the need for a password manager.

How to set up a passkey in Microsoft Authenticator

Microsoft said in a May 1 blog post that it will automatically detect the best passkey to set up and make that your default sign-in option. «If you have a password and ‘one-time code’ set up on your account, we’ll prompt you to sign in with your one-time code instead of your password. After you’re signed in, you’ll be prompted to enroll a passkey. Then the next time you sign in, you’ll be prompted to sign in with your passkey,» according to the blog post.

To set up a new passkey, open your Authenticator app on your phone. Tap on your account and select «Set up a passkey.» You’ll be prompted to log in with your existing credentials. After you’re logged in, you can set up the passkey.

Technologies

Today’s NYT Connections Hints, Answers and Help for July 13, #763

Here are some hints and the answers for the NYT Connections puzzle for July 13, #763.

Looking for the most recent Connections answers? Click here for today’s Connections hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections: Sports Edition and Strands puzzles.

Today’s NYT Connections puzzle wasn’t as tough as some puzzles are. I spotted the four purple category words right away. Read on for clues and today’s Connections answers.

The Times now has a Connections Bot, like the one for Wordle. Go there after you play to receive a numeric score and to have the program analyze your answers. Players who are registered with the Times Games section can now nerd out by following their progress, including number of puzzles completed, win rate, number of times they nabbed a perfect score and their win streak.

Read more: Hints, Tips and Strategies to Help You Win at NYT Connections Every Time

Hints for today’s Connections groups

Here are four hints for the groupings in today’s Connections puzzle, ranked from the easiest yellow group, to the tough (and sometimes bizarre) purple group.

Yellow group hint: Not a compliment.

Green group hint: Spammers want this.

Blue group hint: Read on.

Purple group hint: Cheers!

Answers for today’s Connections groups

Yellow group: Insult.

Green group: Credit card info.

Blue group: Slang for printed matter.

Purple group: Wine nicknames.

Read more: Wordle Cheat Sheet: Here Are the Most Popular Letters Used in English Words

What are today’s Connections answers?

The yellow words in today’s Connections

The theme is insult. The four answers are burn, knock, slight and zing.

The green words in today’s Connections

The theme is credit card info. The four answers are expiration, name, number and zip.

The blue words in today’s Connections

The theme is slang for printed matter. The four answers are glossy, mag, rag and zine.

The purple words in today’s Connections

The theme is wine nicknames. The four answers are bubbly, cab, chard and zin.

Quick tips for Connections

#1: Say the clue words out loud, pausing before and after each. That helps you hear the words in the context of a phrase. The Connections editors love to group words together that are used in similar phrasing, like ____ Up.

#2: Don’t go for the obvious grouping. These editors are smart. Once, they offered SPONGE, BOB, SQUARE and PANTS in the same puzzle. None of those words were in the same category. If you like, hit the «shuffle» button to give yourself a different perspective on the words.

#3: Break down any compound words and look for similarities. «Rushmore» was once in a puzzle where the connection was that each word started with the name of a rock band

Technologies

Your Phone Is Filthier Than a Toilet Seat. Here’s How to Fix That

Experts say your phone needs cleaning way more often than you think.

Your phone goes everywhere with you, but it rarely gets the cleaning it needs. From work meetings to gym sessions and even bathroom breaks, your device touches a lot of surfaces — and picks up a lot of germs along the way. In fact, studies show the average smartphone is often dirtier than a public toilet seat, collecting bacteria and viruses through daily use.

If you’re not disinfecting your phone regularly, all that grime sticks around, transferring to your hands, face and anything else you touch. The good news? You don’t need fancy tools or harsh chemicals to get it clean. With the right cloth, a safe cleaning solution and just a few seconds of care, you can wipe away the germs without damaging your screen or hardware. Here’s how to do it right.

The Federal Communications Commission suggests disinfecting your phone daily, but not all cleaning methods are safe. Harsh chemicals and abrasive materials can damage protective coatings and potentially harm your screen. To keep your phone both clean and intact, it’s crucial to use the right cleaning techniques.

We’ll guide you through the best methods and products for keeping your device germ-free, from iPhones to Samsungs, and whatever their level of water resistance may be.

For more cleaning tips, here’s how to clean wireless earbuds and AirPods.

What are the best products for daily cleaning?

After touching surfaces that see a lot of action from the public — such as door handles, seats on public transportation, grocery carts and gas pumps — you might think you need a heavy-duty cleaning agent to use on your phone. However, you should avoid rubbing alcohol or products made of straight alcohol, since they can damage the protective coatings that prevent oil and water from harming your screen.

Some suggest making your own alcohol-water mix, but getting the concentration wrong can damage your phone. The safest option is using disinfectant wipes with 70% isopropyl alcohol. For daily cleaning, consider a UV light product like PhoneSoap, which kills 99.99% of germs and bacteria. We can also turn to phone manufacturers and cell service companies for guidance, too.

Apple now approves using Clorox Wipes and similar disinfectants, which was not recommended before the pandemic since they were thought to be too abrasive on the screen’s coating. AT&T advises spraying a 70% isopropyl alcohol solution on a soft, lint-free cloth and wiping your device down. Samsung also recommends using a 70% alcohol solution with a microfiber cloth. Always make sure your phone is powered off before cleaning it.

What are the best methods for removing fingerprints, sand and makeup?

Sometimes your phone needs a more specific treatment when washing up. The recommended process for daily cleaning may not be enough to remove pesky grains of sand after a beach vacation or tough foundation stains.

Get rid of fingerprints

Fingerprint smudges are inevitable since your skin produces oils. Every time you pick up your phone, your screen will get fingerprints. The safest way to make your screen print-free is with a microfiber cloth. For a deeper clean, dampen the cloth with distilled water (never apply water directly to the screen) and wipe down the surface. This works for the back and sides of your phone as well.

Alternatively, try a microfiber screen cleaner sticker that sticks to the back of your phone for easy wiping.

Remove sand and small particles

Grains of sand and lint can easily get stuck in your phone’s ports and crevices. To remove it, we recommend you use Scotch tape. Press it along the creases and speaker, then roll it up and gently insert it into the ports. The tape will pull out any debris. You can then just simply throw away the tape for easy cleanup.

For smaller speaker holes, use a toothpick gently or a small vacuum crevice tool to suck out the debris. These tools work well for other small appliances or hard-to-reach areas in your car too.

Cleanse makeup off your phone screen

When you wear makeup and skin care products, such as foundation and moisturizers, you’ll leave residue on your phone screen. While makeup remover works for your face, it’s not safe for screens due to potentially harmful chemicals. Instead, try a screen-safe makeup remover like Whoosh, which is alcohol-free and gentle on all screens.

Alternatively, use a damp microfiber cloth to clean your phone, then wash the cloth afterward. Make sure your cloth is only slightly wet to avoid soaking your phone in water.

What if my phone is waterproof?

For waterproof phones (IP67 and above), it’s best to clean the device with a damp cloth instead of submerging or running it under water — even if the phone advertises that it can withstand submersion for a certain amount of time.

Afterward, dry your phone with a soft cloth, ensuring all ports and speakers are patted dry. While your phone can withstand water, submerging it can lead to water in the ports, delaying charging. Remember, water resistance is meant for accidents, not swimming or regular cleaning.

Things to avoid when cleaning your phone

We’ve already covered why you should avoid makeup remover and rubbing alcohol, but those aren’t a comprehensive list of harmful cleaning agents. Here are a few other items and products you should never use to clean your phone:

Hand sanitizer: Fragrances and ethyl alcohol found in many sanitizers can harm your phone.
Window or kitchen cleaners: Harsh cleaners can strip the protective coating on your phone and leave it more vulnerable to scratches.
Paper towels: Paper can shred, making the debris on your phone much worse, and the rough texture can leave scratches on your screen.
Dish and hand soap: Most soaps require you to combine them with water, and since you should keep water away from your phone, it’s best to stick to a damp cloth.
Vinegar: Like cleaners and alcohols, vinegar will strip your phone screen’s coating.
Compressed air: Blowing intense and direct air into your phone’s portals can cause damage, especially to your mic. Apple specifically warns iPhone owners not to use compressed air.