Crypto scams involve cryptocurrency. They exploit its anonymity and irreversibility to make the funds “disappear”. Crypto scams are a specialized type of financial scam.
Some mechanisms might be similar, advertising investment opportunities in cryptocurrencies with too-good-to-be-true returns. However, crypto scams go beyond the investment pitch. They often involve popular Internet personalities and generous offers, with giveaways or other forms of exploitation of their audiences.
How it typically happens
- Scammers get in touch with their victims through investment or giveaway schemes
- They use fake exchanges or wallets
- The scam often involves the impersonation of an influencer with inherited following on major platforms
- They request to send crypto as a form of payment rather than traditional currency.
Red flags
- “Double your crypto” offers
- Fake endorsements
- Urgent transfer requests
- No verifiable platform
What to do
- Never send crypto to unknown parties
- Verify wallet addresses
- Use trusted exchanges only
- Assume that crypto transactions are irreversible.
Useful articles on online scams
- What is an online scam?
- Types of online scams
- Scam victimology: why did they pick me?
- How scammers choose their targets
- Why so many scams go unreported
- cam cases that made the news
- AI and the next wave of scams
Useful articles on crypto scams
- The illusion of generosity online
- The trading trap of Instagram Forex scams
- The “Insta-wellness” scams
- The illusion of generosity online
- The Twitter Bitcoin scam
- A beginner’s guide to blockchain
- A safe guide to start investing in crypto
