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Mar 21st 2023

4 working methods “How to spot and avoid crypto scams”

There are many different types of crypto scams. Scammers won’t stop anything to get your cryptocurrency. You can protect your cryptocurrency from scams by knowing when and how you can be targeted, as well as what to do if you believe that a cryptocurrency or messages related to it are fake.

Types of crypto scams

How to spot a crypto scam

How to avoid a crypto scam

How to report a crypto scam



Types of crypto scams

In general, crypto scams fall into two different categories:

actions taken with the intention of gaining access to a target’s digital wallet or authentication information. This means that con artists try to obtain data that will grant them access to a digital wallet or other kinds of private data, like security codes. In some cases, this even includes access to physical hardware.

Transferring cryptocurrency directly to a scammer due to impersonation, fraudulent investment or business opportunities, or other malicious means.


Social Engineering Scams

For social engineering scams, scammers use psychological manipulation and deceit to gain control of vital information relating to user accounts. These frauds lead victims to believe they are dealing with a reputable organization, such as a tech support, a member of the community, a coworker, or a friend.

In order to gain the trust of a potential victim and get them to reveal their keys or send money to the scammer’s digital wallet, scammers frequently use any strategy or take as much time as necessary. When one of these “trusted” entities demand cryptocurrency for any reason, it is a sign of a scam.



Romance Scams

Scammers usually use dating sites to lead gullible victims to believe they are partners in a committed relationship. Once trust has been established, the topic of rich cryptocurrency prospects and the eventual transfer of either money or account identification credentials frequently comes up in conversation. According to the Federal Trade Commission (FTC), almost 20% of the reported losses from romance scams were made in bitcoin.



Giveaway Scams and Imposter

Scammers also attempt to assume the personas of famous persons, business leaders, or bitcoin influencers as they move down the sphere of influence. In what is known as a giveaway scam, many con artists claim to match or multiply the cryptocurrency provided to them in order to attract the attention of potential targets. Well-crafted messaging from what frequently appears to be an existing social media account may frequently engender a sense of legitimacy and urgency. People may transfer money rapidly in the expectation of receiving an immediate return because of this fictitious “once-in-a-lifetime” chance.

Impersonators posing as representatives of bitcoin exchange assistance and security have contacted many crypto owners.


Phishing Scams

Phishing scams target data related to online wallets in the context of the bitcoin sector. Private keys for crypto wallets, which are needed to access bitcoin, are of particular interest to scammers. Their approach is typical of many common scams; they send an email with links that take recipients to a specially made website where they are prompted to enter secret keys. With this knowledge, the hackers can take the cryptocurrency.