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10 Common Cryptocurrency Scams

Updated: Nov 7

Even if bitcoin is a new trend, thieves still use conventional methods to commit

theft. Here are some common Cryptocurrency Scams to be on the lookout for..

Common Cryptocurrency Scams
Common Cryptocurrency Scams

10 Common Cryptocurrency Scams



1. Investment schemes using bitcoin

Scammers pose as experienced "investment managers" when approaching

participants in bitcoin investment schemes. The so-called investment managers

promise their victims that their investments will be successful and make

excessive claims about their success in investing in cryptocurrency as part of the

scam.


The con artists want payment up in advance to begin. Then, instead of making

money, the thieves steal the upfront fees. The con artists may also request

personal identifying details under the pretext that they need them to transfer or

deposit money, gaining access to a person's cryptocurrency.




2. Rug-pulling fraud

In rug pull schemes, fraudsters "pump up" a new business, non fungible token

(NFT), or currency to attract investors. The con artists vanish with the money

after obtaining it. These investments software forbids anyone from selling bitcoin

after buying it, leaving with a worthless investment.


The Squid coin scam, which took its name from the well-liked Netflix comedy

Squid Game, is a common variation of this fraud. To earn cryptocurrency,

investors had to play: People would purchase tokens for online games and then

make more to trade for other cryptocurrencies. As a result, the Squid tokens

value increased from one cent to almost $90 per token. Later, vanishing with all

the money.


3. Romance scams

Cryptocurrency scams are not new to dating apps. These frauds include

relationships established gradually over time, usually based on long distances

and online communications. Then, the scammer gradually persuades the other to

contribute money or purchase cryptocurrency.


The dating scammer leaves with your money when they have it. These scams

are sometimes referred to as "pig butchering scams".


4. Phishing scams

Phishing methods are still employed often despite being around for a while. For

example, scammers send emails with harmful links that lead to a bogus website

to collect personal information, such as the private key for a bitcoin wallet.


Users of digital wallets only receive a single, unique private key, unlike

passwords. However, a lost private key is challenging to recover. Since each key

is exclusive to a wallet, a new wallet must be made to change this key.


5. A man in the middles assault

Scammers can access bitcoin users private information when they log in from a

public WiFi. Passwords, cryptocurrency wallet keys, and account information are

examples of data that fraudsters may intercept when exchanged over a public

network.


When a person is logged in, a hacker can get this confidential information using a

man-in-the-middle attack technique. When trustworthy networks are nearby, Wi-

Fi signals from those networks are intercepted by these hackers.


Utilizing a virtual private network to protect the middleman is the most effective

defense against these assaults (VPN). All data transferred is encrypted via the

VPN, preventing hackers from accessing personal data and stealing bitcoin.


6. Social media cryptocurrency giveaway scams

Social media sites are flooded with fake postings that advertise bitcoin prizes.

Some of these frauds even use phony celebrity accounts to promote the offer to

entice consumers.


However, when a user clicks on the promotion, they are sent to a phony website

that requests verification to send them bitcoin. Asking for a payment as part of

the verification procedure demonstrates the accounts illegitimacy.


7. Ponzi schemes

Ponzi schemes compensate its elder investors out of the earnings of new

investors. Cryptocurrency crooks will use cryptocurrency to draw in new

investments.


The promise of enormous riches with minimal risk is the core allure of a Ponzi

scheme. However, these investments are always associated with dangers and

can guarantee no profits.


8. Fake exchanges for cryptocurrencies

Scammers may entice investors with claims of a fantastic cryptocurrency

exchange or assure even more bitcoin earnings. However, it isn't a genuine

exchange, and the investor generally doesn't realize its a scam until they've

already lost their money.


9. Employment offers and fraudulent employees

Scammers often pretend to be recruiters or job searchers to access

cryptocurrency accounts. Using this trick, they provide a compelling job while

demanding bitcoin for work training.


10. Fake applications

Scammers frequently use bogus applications downloadable from Google Play

and the Apple App Store to deceive bitcoin investors. These fake applications are

swiftly identified and taken down, but that doesn't mean they aren't affecting

many bottom liners. Numerous people have downloaded phony cryptocurrency

applications.


Summary:

Don't give up if you have fallen victim to a bitcoin scam. Even though it could

appear as though the industry is a little like the Wild West, several methods exist

to get back your investment.


Recovery firms with several legal experts specialize in recovering money from bitcoin fraud. You are given a caseworker who will investigate all of your options.


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