Crypto Scams: 5 of the Most Notorious Schemes
Where there’s money, there are those who want to pocket it. Scammers have always been, are and will always be, and even more so in the crypto world. The cryptocurrency world is famous for the abundance of scams, and because of this, most newcomers may be distrustful of this sphere as a whole.
Today, we will cover 5 of the most notorious scam schemes, being aware of which will help you to protect yourself and your funds.
- ICOs
An ICO is a form of attracting investment in a project that has not yet been released. Scammers create artificial excitement, invent a heartwarming legend and promise exorbitant dividends to investors. Investors, in turn, buy the project’s assets, hoping for a profit. After collecting funds, enterprising organizers usually disappear under the cover of night, and investors are left with nothing. More precisely with disappointment and without their money.
2. Phishing attacks
Scammers create fake websites and attack users with messages in hopes of gaining access to users’ personal data. Not always, but quite often they succeed. There are special “spies” sewn into buttons on the site and in emails, ready to get hold of your passwords and credentials or damage your equipment.
3. Pyramid Schemes
Scam pyramids are based on Ponzi schemes: users/investors who come later provide income to those who came earlier. It is in the interest of the participants of the pyramid to bring in as many people as possible. The pyramid functions until the inflow of funds of new investors becomes insufficient to pay income to the participants of the pyramid. After the pyramid collapses, the organizers pocket the remaining funds and walk off into the sunset.
4. Scam Investments
Everyone knows that a successful purchase of an asset can literally make you rich, and scammers can’t get past this fact.
They introduce themselves as traders, consultants or developers of a super promising project, bot, app (the list goes on 🙂 ) and offer it to investors, promising 3–10% yield per day with the possibility of withdrawal in a month. The end of the story, we think, is clear, without words.
5. Scam crypto
Here, fraudsters have to sweat a bit and even invest some resources to prepare a new scam. They create a semblance of a new cryptocurrency and immediately organize a movement-parody with assurances that it is the new bitcoin, and maybe even better. And only now can you purchase this asset at a super favorable price, so catch the moment! In some cases, the asset may even be artificially propagated on one of the lesser-known exchanges, additionally creating excitement. After the project receives a large inflow of funds, it is let go.
How to protect yourself from scams in crypto?
- Thoroughly check all data about the project you want to invest in.
- Approach investing wisely and don’t put all your savings into it.
- Do not believe too “sugary” promises of developers.
- Do not click on social media links and do not trust “secret secrets” that are sent to your personal mailbox along with phishing links.
- Check links and sites through special anti-phishing tools.
- Do not store passwords and secret phrases in your phone’s notes.
- Regularly update your antivirus and use a paid VPN.
Be vigilant and don’t neglect your safety!
