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The Most Common Cryptocurrency Scams and Tips to Avoid Them

Cryptocurrency scams have been on the rise lately. Whether you’re a newbie or someone who knows a lot about cryptocurrencies, the chances of ending up a scam victim are very high. 

Cryptocurrency scammers are always coming up with new ways to swindle people, but you can avoid them by learning how the scams work.  

Here are the most common crypto scams and how to avoid them.

Impersonation or imposter cryptocurrency scams

In this type of scam, scammers pose as trusted entities and request crypto payments. According to the Federal Trade Commission, for example, 14 percent of all reported impersonation scam losses are in cryptocurrency. Imposters may disguise themselves as government authorities, banks, or credit card providers.

To identify an imposter, check if their website carefully and you will notice that it is just an imposter website made to look like the legit entity’s website. Also, if they request payment urgently, it’s likely a scam.

Cryptocurrency scams disguised as investment opportunities

These are crypto investment deals where you are lured to a fraudulent website that gives you an unsolicited offer. You are then encouraged to invest and make money quickly. 

While there are some legit companies where you can invest in various crypto coins and earn rewards/interest, many websites out there are fake. If you find that the deal is too good to be true, or you’re given a guarantee that you’ll make more money faster, that’s definitely a scam and you should stay away.

Social media-driven cryptocurrency scams

Social media has become the best ground for most scammers today. Many scams are occurring in popular social media channels such as Facebook, Twitter, and Instagram, etc. If you see a social media post or advertisement requesting payment in cryptocurrency, that’s a sign of scammers.

Be cautious when you come across popular social media users hyping new cryptocurrency schemes and encouraging their followers to sign up or invest to multiply their money. Any cryptocurrency program that promises to multiply your money quickly is a get-rich-quick trap where many innocent people have ended up losing lots of money. Avoid such traps as much as possible, or conduct proper research.

Fake Apps

Some legit cryptocurrency companies have their own mobile apps. But, cybercriminals can also replicate these apps and use them to scam people. It is estimated that more than 10,000 people have been victims of fake cryptocurrency apps. 

To avoid fake crypto apps, scrutinize the name of the app and ensure there is no misspelling. If the name is misspelled then that’s a fake app. Also, check if the branding of the app is authentic compared to the original app because scammers are not that good at branding.

Extortion scams

Extortion is one of the biggest scams in the crypto industry. This is when you receive an email from strangers saying that they have photos, videos, or confidential information about you. They then request you to pay money via cryptocurrency or else they will leak the information.

If you receive such an email don’t panic. What you need to do is just ignore it because those are outright lies used to extort.

The best way to avoid being scammed is by staying alert. Conduct thorough research or hire a professional to investigate properly and find out if what you want to get yourself into is legit. If you’re planning on investing in cryptocurrency, ensure you deal with credible, registered companies in the industry.

Need help to recover your funds?

Do not be discouraged at all if you have encountered a scam. The first and most important step is to know your rights or alternatively reach out to us immediately for professional help to get started on getting back the money that is rightfully yours. 

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