Cryptocurrency, a decentralized and volatile digital currency, draws both enthusiasts and scammers. The FTC reports over $1 billion lost to crypto scams from Jan 2021 to June 2022, with an expected rise in 2024. In this blog post, we will cover some of the most prevalent crypto scams to watch out for in 2024, and provide some tips and best practices to avoid them.
Common Types of Crypto Scams
- Investment or business opportunity scams: These are scams that promise high returns, fast profits, or easy money by investing in a new or unknown crypto project, platform, or service. They often use fake testimonials, celebrity endorsements, or pressure tactics to lure people to their fraudulent websites or apps, where they ask them to deposit funds or provide personal information. Once they receive the money or data, they disappear or stop paying out.
- Imposter or impersonation scams: These are scams that pretend to be someone or something else, such as a government agency, a bank, a service provider, or a famous person, to trick people into sending them crypto or revealing their private keys. They often use phishing emails, fake websites, social media accounts, or phone calls to contact their targets and make them believe they are legitimate or trustworthy.
- Blackmail or extortion scams: These are scams that threaten to expose or harm someone or something, such as personal information, photos, videos, family, friends, or reputation, unless they pay a ransom in crypto. They often use email, text, or social media messages to deliver their ultimatums and intimidate their targets.
- Giveaway or airdrop scams: These are scams that offer free or discounted crypto or tokens to people who participate in a certain activity, such as following a social media account, joining a group, or sending a small amount of crypto to a specific address. They often use fake or hacked accounts, websites, or apps to promote their schemes and entice people to join. However, they never deliver the promised rewards and instead steal the crypto or data that people send them.
- Malware or hacking scams: These are scams that use malicious software or techniques to infect, access, or control someone’s device, wallet, or account, and steal their crypto or private keys. They often use email attachments, links, downloads, pop-ups, or fake updates to deliver their malware or exploit their targets’ vulnerabilities. They may also use keyloggers, screen recorders, clipboard hijackers, or remote access tools to monitor or manipulate their targets’ actions.
How to Spot Crypto Scams
Crypto scams can be hard to spot, especially for beginners or inexperienced users, as they may look or sound convincing, professional, or legitimate. However, there are some warning signs and red flags that can help you identify and avoid them, such as:
- Guaranteed or unrealistic returns: If something sounds too good to be true, it probably is. Crypto is a risky and volatile asset class, and no one can guarantee or predict its performance or value. Anyone who promises you high, consistent, or guaranteed returns, or claims to have a secret or foolproof strategy, system, or algorithm, is likely lying or scamming you.
- Urgency or pressure: If someone tries to rush or pressure you into making a decision, sending money, or providing information, they are probably trying to scam you. Crypto scammers often use fake deadlines, limited offers, or fear of missing out (FOMO) to manipulate you into acting quickly, without doing your research or thinking critically.
- Unsolicited or unexpected contact: If someone contacts you out of the blue, without your consent or request, or from an unknown or unverified source, they are probably trying to scam you. Crypto scammers often use spam emails, cold calls, or random messages to reach out to potential victims and lure them into their traps. They may also use fake or spoofed identities, addresses, or numbers to appear credible or trustworthy.
- Requests for payment or information: If someone asks you to send them crypto, reveal your private keys, or provide your personal or financial information, they are probably trying to scam you. Crypto scammers often use these tactics to steal your money or data, or to access or control your wallet or account. They may also use fake or altered invoices, receipts, or addresses to trick you into sending them funds or data.
- Lack of transparency or verification: If something is vague, unclear, or secretive, or lacks evidence, proof, or verification, it is probably a scam. Crypto scammers often use generic, vague, or misleading information, or avoid providing details, facts, or references, to hide their true intentions or identities. They may also use fake or stolen logos, certificates, or testimonials to appear legitimate or reputable.
How to Protect Yourself from Crypto Scams
- Do your own research: Before investing in or using any crypto project, platform, or service, do your due diligence and research its background, reputation, and legitimacy. Check its website, whitepaper, roadmap, team, partners, and social media accounts, and look for reviews, ratings, feedback, or complaints from other users or experts. Verify its sources, claims, and credentials, and look for signs of quality, security, and compliance.
- Use reputable and secure platforms: Only use platforms that are reputable, reliable, and secure, such as well-known and established exchanges, wallets, or apps, that have a proven track record, a large user base, and positive reviews. Avoid platforms that are new, unknown, or unregulated, that have a poor reputation, a small user base, or negative reviews. Also, make sure that the platforms you use have adequate security features, such as encryption, authentication, verification, and backup.
- Be cautious and skeptical: Always be cautious and skeptical when dealing with crypto, and never trust anyone or anything blindly or easily. Don’t fall for hype, FOMO, or greed, and don’t let your emotions or impulses cloud your judgment or decision-making. Don’t click on links, open attachments, or download files that you don’t recognize or trust, and don’t enter your information or credentials on websites or apps that you don’t know or trust. Don’t send crypto or reveal your private keys to anyone or anything, and don’t participate in giveaways or airdrops that seem too good to be true.
- Keep your devices and wallets safe: Keep your devices and wallets safe from malware or hacking by using antivirus software, firewall, VPN, and other security tools. Update your devices, wallets, and apps regularly, and use strong and unique passwords for all your accounts, and enable two-factor authentication (2FA) or multi-signature (multisig) for extra security. Store your private keys offline, in a hardware wallet or a paper wallet, and keep them in a safe and secret place. Backup your wallet and keys, and restore them periodically to ensure they work.
Choosing a Secure Exchange
In the realm of cryptocurrency exchanges, finding a reliable and secure platform is paramount. Amidst the ever-evolving landscape of digital assets, CoinW stands out as a beacon of trustworthiness and innovation. With its robust security measures and user-friendly interface, CoinW provides a seamless trading experience for both novice and seasoned traders alike.
One of the remarkable aspects of CoinW is its commitment to transparency and customer satisfaction. Unlike some lesser-known exchanges, CoinW prioritizes integrity and accountability, ensuring that users can trade with confidence and peace of mind. Additionally, CoinW offers a diverse range of cryptocurrencies, providing ample opportunities for portfolio diversification and investment growth.
Whether you’re a newcomer looking to dip your toes into the world of crypto or a seasoned investor seeking a reliable trading platform, CoinW has something to offer. With its dedication to excellence and customer-centric approach, CoinW continues to set the standard for cryptocurrency exchanges in the digital age.
So, why not embark on your crypto journey with CoinW? Visit their platform today and experience the difference for yourself. Your future in cryptocurrency awaits, and CoinW is here to help you navigate it with ease and success.
Real world job hunting scam case.
This is an incident of how a man almost fell victim to a scam on Discord. He saw a job ad offering $400 a week for a discord moderator job, Despite the tempting offer, he sensed red flags from the start. After messaging the advertiser, he was directed to a group to apply for the job. Following instructions, he filled out an application form, with basic questions unrelated to the job. He felt suspicious, but he continued anyway.
Upon notifying them of his completed form, the next step was a brief conversation about his lack of moderator experience. Surprisingly, he was hired without an interview or any formal agreement, raising another red flag. When he inquired about the project’s mission, functionality, and investors, he received vague responses like “it’s just a normal group, nothing special.” He sensed something was wrong.
The real alarm bells rang when he was asked to run their project on his Windows PC or Mac. Recalling a similar scam shared on a thread he read on X (formerly Twitter).
He decided to check their website on his phone. The website had a “start” button to run the program on his PC. He realized that running their program would give them access to his passwords, wallets, and probably all his crypto savings. He left the group and blocked the advertiser.
He shared his story to warn others and to help them stay safe. He learned from his experience and became more careful about online job offers. He hoped that no one else would fall for such scams.
Conclusion
Crypto scams are a serious and growing threat in the crypto space, and they can cause significant losses and damages to anyone who falls victim to them. Therefore, it is important to be aware of the common types of crypto scams, how to spot them, and how to protect yourself from them. By following the tips and best practices in this blog post, you can reduce your risk of becoming a victim of crypto scams, and enjoy the benefits and opportunities that crypto offers.