Common Cryptocurrency Scams and How to Avoid Them

Although cryptocurrency offers various benefits, including transactional autonomy, security, and ease of transferring money, cybercriminals have developed different methods to trick people or crypto investors and steal their hard-earned money.

Recent research shows that cybercriminals stored over $1.3 billion in cryptocurrencies in the first quarter of 2022. Today’s article will discuss common cryptocurrency scams and give you tips to avoid them. Read on!

Phishing Scams

Phishing is one of the most common methods cybercriminals use to scam people online, including cryptocurrency investors. Phishing can happen over instant messaging apps, phone calls, social media, SMS, and emails.

However, emails are a more sophisticated way for criminals to trick people and steal their personal and financial data. Scammers create fake profiles that mimic a reputable cryptocurrency company or service.

As a result,  people find it challenging to identify whether the company they want to invest with is legit or a scam. The primary objective of phishing attacks is to convince cryptocurrency users to click a link or provide credentials.

The purpose is to access users’ accounts and funds. Common examples include phishing emails that offer fake products/services, promotions, new offers, and unrealistic returns on investments.

Likewise, scammers send emails to cryptocurrency users with links that require them to enter their wallet private key or password reset answers. When a user clicks the link and provides the information, scammers use the data to access the wallet and transfer cryptocurrency to an unknown account.

Sometimes, cybercriminals use the provided “password reset security answer” to change the password. We recommend not clicking links received via emails and SMS until you confirm they are authentic or legitimate.

Use anti-phishing codes, contact the company’s customer support, and hover your mouse over the link to determine whether the URL is valid. In addition, avoid entering your credentials on unknown websites and apps.

Pyramid and Ponzi Schemes

Pyramid and Ponzi schemes have taken over the crypto industry. For instance, a Ponzi cryptocurrency scheme will send you emails regarding investment opportunities with guaranteed profits. Remember, this is the first red flag to look for to avoid these crypto scams.

Likewise, a cryptocurrency pyramid scheme is a financial scam or fraud, allowing top-level scammers to enlist and benefit from newly deceived members. Crypto Ponzi schemes usually involve unregistered or fake organizations and advisors.

Therefore, checking the individual’s or company’s reputation is essential before investing your money in cryptocurrencies. You can read online reviews on third-party websites, such as Google, Yelp, and Trustpilot, to know whether the company is legit or a scam.

Social Media Crypto Giveaways

There are hundreds of thousands of fraudulent cryptocurrency-related posts on social media platforms, promising bitcoin or Ethereum giveaways. Some of these scams also involve fake celebrity accounts and profiles that promote bitcoin giveaways to attract people.

For example, clicking on the link will direct you to a fake website and ask for verification. If you fail to verify, you won’t receive the bitcoin. So, most people looking to earn free crypto coins fall into the “verification” trap, allowing scammers to steal their original information.

So, if you see posts or comments with links on social media, avoid clicking them because most links will install malware on your PC, laptop, or smartphone, enabling the cybercriminal to monitor your crypto-related activities.

Moreover, avoid trusting companies that offer free cryptocurrency in exchange for filling out a form or survey. If someone says they have sent you an email with cryptocurrency as a reward, don’t comply.

If you have already fallen into the trap and become a victim of a cryptocurrency scam, you can recover the lost coins or funds by hiring a fund recovery service like Online reviews on third-party sites show that this cyber forensics company is 100% legit and helps people recover their sensitive information or lost funds legally, efficiently, reliably, and cost-effectively.

Impersonation Cryptocurrency Scams

Impersonation cryptocurrency scams have become common, allowing cybercriminals to pose as trusted sources and convince users to complete cryptocurrency transactions, such as bitcoin or Ethereum transactions.

For example, most cybercriminals scam people under the disguise of public or private companies, government authorities, fintech companies, credit card providers, financial organisations, and banks.

Sometimes, fraudsters create fake celebrity accounts and reach out to users via email, requesting they transfer money via cryptocurrency for a charitable cause. In reality, they scam you and steal your money.

Bear in mind that governments worldwide have not validated cryptocurrency, meaning most businesses do not accept it as a payment method or mode. Therefore, we recommend exercising caution when you receive emails requesting cryptocurrency payments.

Recovering Funds

Recovering funds may be possible with the assistance of a cryptocurrency private investigator. A review of the best fund recovery companies led us to a great review on their Twitter page. Speak to to see if they can provide you with assistance to recover stolen crypto funds.

Final Words

Online scammers and fraudsters use different methods to trick people into giving them cryptocurrency. These scams aim to collect private sensitive information, including security codes, or trick people into sending bitcoins to a fake or compromised digital wallet.

So, follow the tips and tricks above to avoid cryptocurrency scams. On the other hand, if you have already become a victim of crypto-related scams, you can recover the lost coins/money/funds by hiring fund recovery services.

Deny Smith
Author: Deny Smith

About Deny Smith

Check Also

How to Look After Your Group’s Money

Are you tired of feeling overwhelmed by your group’s finances? Want to ensure that your …