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Crypto scams have increased, with nearly 18 billion dollars stolen by scammers alone in the last two years. As the cryptocurrency space grows, so does the prevalence of scams targeting unsuspecting users. In this article, we will expose the most common crypto scams, provide real-world examples, and offer tips on how to avoid falling victim to them.
- The Fake Investment Scheme: One of the most common crypto scams involves scammers contacting individuals directly, pretending to be knowledgeable investors, and promising significant investment returns. They often lead their targets to fake websites with alluring investment opportunities. The red flag is if someone you don’t know messages you out of the blue, especially on platforms like Telegram, where scams are rampant. Block or ignore such messages immediately.
Real-world example: A viewer, We’ll call him Mr P, received a message on his Telegram channel from someone claiming to have made a fortune through crypto investments. Mr P was directed to a legitimate website with a registered company certificate, physical address, and white paper. However, the company certificate appeared fake upon closer inspection, and the white paper was poorly written. Mr P invested $15,000 over a year, supposedly tripling in value. When Mr P tried to withdraw his funds, the scammers refused and eventually disappeared, leaving Mr P without any way to get his money back.
How to avoid it: Always be cautious of unsolicited messages from strangers, especially involving investments.
Please thoroughly research any investment opportunity, including the company and its founders.
Trust only reputable platforms and avoid those that use aggressive sales tactics or offer unrealistic returns.
- The Phishing Scam: Scammers often impersonate official support or friendly community members on social media platforms. They prey on individuals seeking help and direct them to fake websites that aim to steal sensitive information, such as seed phrases or private keys.
Real-world example: A Reddit user pretended to be an innocent person needing assistance. Scammers immediately reached out with complex instructions to confuse and trick the user into revealing their seed phrase. Fortunately, the Reddit user recognized the scam and played along, wasting the scammers’ time.
How to avoid it: Never share your seed phrase or private keys with anyone, even if they claim to be official support or helpful community members.
Avoid clicking on suspicious links or interacting with unknown users on social media platforms.
Stay informed about the latest scams and tactics scammers use to protect yourself.
- The Airdrop Scam: Scammers lure victims with promises of free tokens through airdrops, where users receive tokens for holding other cryptocurrencies. However, most airdrops are scams designed to steal sensitive information or provide worthless tokens.
Real-world example: Many users have received unexpected tokens in their wallets, only to discover that these tokens are scam airdrops. Interacting with these tokens may trigger malicious code that gives scammers access to your wallet.
How to avoid it: Research any airdrops you receive before interacting with them.
Avoid clicking on links or downloading files related to airdrops from unknown sources.
Use wallet features that allow you to hide or ignore tokens to avoid triggering malicious code.
Conclusion
Crypto scams are on the rise, but with vigilance and knowledge, you can protect yourself from falling victim to them. Be cautious of unsolicited messages, avoid sharing sensitive information, and stay informed about the latest scam tactics. You can safely navigate the crypto space and protect your hard-earned assets by exercising caution and scepticism.
