10 Common Cryptocurrency Scams
Updated: Nov 7, 2022
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..
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
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
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
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
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
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
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.