The rapid growth of cryptocurrency in the past few years has opened up the gate for many cryptocurrency scams to exist today. Scammers want your crypto and are desperate to obtain it like they would with the money in your bank account.
Most scammers try to get into your digital wallet or access your credentials. Others may even try to get you to transfer crypto from your wallet through impersonation or fraudulent business schemes.
This article will teach you the five most common crypto scams and ways to avoid them.
Phishing Scams
Phishing involves situations where a scammer impersonates a familiar individual or organization to obtain the victim’s personal information. The victims may be contacted by direct telephone calls, fake websites, emails, and Instant Messaging apps to get their sensitive details. Most attackers will first create a sense of panic in their victims to trick them into responding.
For instance, you may receive emails or texts from a person pretending to be a customer support rep from your crypto exchange. When you engage them, they’ll prompt your wallet pin, address, and seed words.
Pro Tip: Always contact your exchange through their official website whenever you receive unsolicited messages. Do not give out your private keys before double-checking the domain name of any platform you use.
Social Media Giveaway Scams
You may have come across giveaway posts on Twitter or Facebook where a company or an influencer offers products or rewards in return for engagements on their account. However, if a giveaway post asks you to pay some money or send a Bitcoin in return for a larger reward is most likely a scam.
Pro Tip: Be wary of any giveaway that requires you to send money or drop your sensitive information for rewards. Even if the username seems legit, after going through the profile, you can tell it’s only a fake account.
Fake Crypto Exchange Scam
New players are entering the crypto exchange market daily, and it can take time to tell the legit sites from the fakes. Most people have been duped of their money from these fake exchange platforms. They try to get victims to trade coins on the site, and investors don’t realize it’s a scam until after making a deposit.
Pro Tip: You should do proper research, stick to the top crypto exchange markets, and avoid unfamiliar names.
Dating App Scams
Scammers seek more creative ways to steal from their victims, and dating app scams have become popular. Most people try online dating to find romantic partners but instead fall victim to fraudsters.
Pro Tip: Always do background checks on anyone you meet online. You can look through their social media or any other platform to ensure they’re genuine. It is also best to keep your financial information and security details private when you first meet someone online.
Crypto Investment Scams
Scammers deceive their victims into believing they will also make money by claiming they have invested millions of dollars in a coin or Bitcoin project. They may pretend to be investment managers and ask you to pay a fee to get started. Then, the thieves don’t bother making money; they steal the initial payments.
Pro Tip: You can apply the ‘Do Your Own Research’ model whenever you get an investment offer. Check out actual reports from legit publications, market analysis, and always fact-check any claims before taking action.
