Investing in stablecoins has become one of the best options for crypto investors with low-risk tolerance. Since the value of stablecoins is pegged to the US dollar, this token serves as one of the safest ways to invest in cryptocurrency. Speaking of stablecoins, USDT (Tether) is an investor’s all-time favorite, with an impressive market cap of over $83 billion. With millions of people choosing to invest in USDT in recent years due to its profitability, it is unsurprising that scammers have also entered the scene seeking to rip investors off their hard-earned tokens. If you are a beginner seeking to invest in this token, then you should learn the ways to spot fake USDT transactions. By doing this, you reduce the chances of getting defrauded by scammers while investing in USDT and trading in the crypto market at large.
An easy bailout will be to only transact on reliable crypto exchanges like Bitmama. Basically, you can buy and sell through instant orders or from other traders via P2P trading. Download the Bitmama app to get started.
What is USDT?
USDT, also known as Tether, is a stablecoin whose worth is pegged to Dollar in a 1:1 ratio. Essentially, this implies that the cost of 1 USDT is always equal to the price of 1 US dollar.
This stable was specifically designed to regulate the volatile and unstable nature of the crypto market. It works contrary to the principle of crypto prices being determined by demand and supply demand and supply.
The capacity of USDT to regulate the crypto market and give it some stability makes it the best stablecoin. Therefore, it causes more crypto traders and investors to trade the tokens to make profits, as it currently has a market cap of over $83 billion.
What is a fake USDT transaction?
A fake USDT transaction is simply a crypto transaction in which USD was transferred with the use of the ERC20 network, however, the specific transaction executed is worthless.
How do fake USDT transfers work?
Bad actors perform fake USDT transfers. These bad actors send fake USDT to a gullible victim, defrauding them of their hard-earned money. Usually, the scammer will make use of a fake USDT mobile app and fake USDT sender to execute fake USDT transfers to their victims in order to make them deposit real money into their accounts.
6 ways to spot fake USDT transactions
Generally, there are some tell-tale signs that a USDT transfer is fake. Listed below are the best six ways to spot fake USDT transactions:
1. The transaction address
There is an authentic contract address for every USDT transfer executed, which generally varies depending on the network to which the token is being sent to. So you must always check the transaction address to ensure that it corresponds with the original address.
Also, it is very important to carefully review the characters to make sure that one character is not added or removed from the authentic address. You must also confirm that the characters displayed are complete.
This is to point out that USDT transactions generally have a uniform contract address across various networks. So, you must avoid USDT transactions that involve a different contract address.
2. Funds not added to your wallet
You must check and confirm that the USDT token transfer is reflected in your crypto wallet balance. This is similar to detecting fake bank alerts because if an alert is fake, the amount will not be added to your original account balance.
Hence, it is very important for you to know your crypto wallet balance before the USDT transfer so that you can be sure of the extra funds. It is certainly a fake USDT transfer if the token’s value doesn’t reflect in your crypto wallet balance.
With Bitmama app, for example, your wallet is instantly credited when you make a direct purchase and for P2P, your wallet gets credited as soon as payment is confirmed.
3. Fully diluted market cap
Market cap is a measure of the product of the cost of a token and its entire supply. It is applicable to every cryptocurrency, including USDT.
Hence, you must see the fully diluted market cap of USDT when you tap on the USDT symbol displayed in your wallet. However, if it is a fake USDT transfer, this figure will not be displayed to you. Make sure you remain alert for this major red flag when executing USDT transactions.
4. USDT logo
Although this sign may look unimportant, it is one of the most obvious red flags you can spot easily. You must always be mindful of the USDT symbol and its color. The USDT logo is green and anything other than this color may be fake. Be wary of USDT logos other than this.
Most fake USDT logos have greyish colors that were intentionally designed to confuse USDT users who don’t know how to tell the difference.
It’s important that you confirm this simple, but vital, feature to ensure that you are making a real transaction with the user.
5. Scan the transaction
Upon finalizing the transaction, the user has to give you a transaction hash. The hash is a string of alphanumeric characters that is generated whenever a crypto transaction is prompted. It primarily serves as an identifier that can be used to track different transactions on the blockchain.
Hence, it is crucial to have this USDF transaction hash and subsequently scan it on an ETH network explorer to view the details of the transaction. This would allow you to know the integrity of the USDT transaction – whether it is original or fake. If the user is unable to provide you with a transaction hash, then you have your answer already.
6. Zero token information
The USDT token should have information like circulating supply, 24-hour trading volume, as well as the market cap when executing transactions. These details will generally reveal the market performance of the token.
However, if the USDT transaction is fake, these details may not be shown to you. So you must be very cautious when this kind of situation arises.
Why are fake USDT transfers happening?
In recent years, fake USDT transfers have been happening more frequently because of the rise in the total number of cryptocurrencies in circulation and the general increase in the popularity of digital wallets. With digital wallets, it is easy for scammers to set up numerous crypto wallets and use them to send and receive fake USDT to unsuspecting victims.
Also, scammers have started taking advantage of the extreme volatility of the prices of cryptocurrency and capitalize on the fact that USDT is a stablecoin pegged to the US dollar. This permits them to exploit prices and trick unsuspecting victims into sending funds to their wallets so that they can gain from the price changes.
Another major reason why fake USDT transfers are fast becoming popular is because of the absence of central regulation of the crypto market. This implies that it is very easy for scammers to open fake wallets without ethical checks and balances. For this reason, you must always be vigilant when handling cryptocurrency-related transactions.
What should I do if I spot a fake USDT transfer?
If you figure out that a USDT transfer is fake, make sure that you don’t send any cash to the person or entity demanding it and report the case to the exchange platform and/or your local law enforcement. Also, you can confront the person or entity sending the fake USDT and warn them about it.
Note that it is super important to move with caution when doing crypto-related transactions. The same level of caution you apply when trading cash is what you should apply when trading crypto. Make sure you confirm the identity of both participants involved in the crypto transaction. Also, you must do due diligence and in-depth research on the individual or entity that you are transacting with.
Keep in mind that some cryptocurrency, such as USDT, is not entirely anonymous. Because of this, fraudsters can still be traced. So if you spot a fake USDT transaction, don’t forget to report it to the appropriate authorities.
How do I check if USDT is real or fake?
You can know whether a USDT transfer is real or fake by comparing the delivered hash address to the authentic USDT hash address. If there is a disparity between the two addresses, then the UDST token is fake.
Can I get my USDT back from a scammer?
Unfortunately, there is no assurance of getting back your stolen USDT. This is due to the anonymous nature of all crypto transactions. However, there may be hope if you take fast action and look for appropriate assistance from the right authority. This may increase your chances of recovering the funds back, but nothing’s certain.
Can I reverse USDT transactions accidentally sent to a scammer’s wallet?
It is impossible to turn over USDT transactions because they have already been documented on the blockchain once they are confirmed. For this reason, funds alteration or reversal is impossible.
USDT tokens have real-time market value, therefore, are a viable asset for you to buy, hold, and sell. Note these 6 ways discussed if you wish to If you want to reduce your chances of getting scammed.
To avoid the stress of scrutinizing every single transaction, you can simply trade on only trusted and reliable platforms. Bitmama allows users to instantly buy, sell, and swap crypto with their fiat currencies in seconds.