Scam in crypto. How to avoid it?

Cuberium
Сuberium
Published in
4 min readMar 29, 2024

In the crypto industry, scammers always target users, especially in projects where the community eagerly awaits launches or sales.

Recently, scammers tried to trick our users.

Here’s what happened:

1. They created a fake website that looked identical to ours by adding the needed details.
2. They found a weakness in one of the tethered Twitter apps to gain access to post messages to our official profile.
3. After gaining access, they published a post and a link to the possibility of claiming the land, doubly stressing the urgency and short timeframe.
4. By following the link, they encouraged users to connect their wallets, promising land minting. If the transaction had been signed, all funds would go to the scammer’s address.

This is what an urgent post looked like on our Twitter (X) 👇

Luckily, our vigilant team quickly spotted the issue and took action.

How?

- we removed the fake post;
- removed the linked Twitter application that provided access to fraudsters;
- and instantly alerted our community in official socials.

Therefore, always check several official channels and website addresses, and never fall for FOMO. We constantly inform about events in advance.

So, how can you protect yourself? How do you differentiate between genuine opportunities and potential traps?

In this article, we’ll walk you through some common crypto scams, equipping you with the knowledge and tools to identify and avoid them.

Common Types of Crypto Scams

While the crypto space offers immense potential, it’s also fertile ground for scams. Here’s a look at some prevalent types:

Phishing Scams. These involve fraudsters creating fake websites or emails resembling legitimate platforms to trick you into sharing sensitive data like wallet keys or login credentials. For instance, you might receive an email purporting to be from a reputable exchange urging you to verify your account details. The aim is to steal your information and access your crypto assets.

Ponzi and Pyramid Scheme. Named after notorious con artists, these schemes promise high returns on investments. In a Ponzi scheme, returns are paid to early investors using capital from newer investors rather than from profit. Participants earn money mainly by recruiting new members. Both schemes are unsustainable and often collapse, leaving late investors at a loss.

Fake ICOs. ICOs are a fundraising method for new crypto projects. However, scammers capitalize on investors’ interest by creating fake ICOs. They may set up elaborate websites and whitepapers with no fundamental technology or team behind them. Investors who buy into these fake ICOs often end up with worthless tokens.

Pump and Dump Schemes. These involve artificially inflating a cryptocurrency’s price through false positive statements (“pump”) and then selling off the overvalued assets (“dump”). Small investors are enticed by the rising price, unaware that it’s artificially inflated, and end up with devalued assets when the scheme collapses.

Impersonation and Fake Endorsements. Scammers impersonate well-known figures or celebrities in the crypto world or create fake endorsements using their names. This is done to promote specific cryptocurrencies or ICOs, making them appear more legitimate and enticing to unsuspecting investors.

Spotting a Crypto Scam

Recognizing a scam is crucial for safeguarding your investments.
Here are key warning signs:

1. Lack of Clear Information
Legitimate projects provide detailed information about their technology, team, and objectives. If a project lacks transparency, it’s a red flag.

2. Pressure to Act Quickly
Scams often create urgency, urging you to invest hastily to avoid missing out. Genuine investments don’t require such haste.

3. Unsolicited Offers.
Be wary of unexpected investment offers, particularly those received via social media or email.

4. Manipulative Marketing Tactics
Over-the-top marketing, celebrity endorsements, or flashy graphics without substantive content can signal a scam.

The Role of Research and Due Diligence

In the cryptocurrency world, knowledge is security. Stay informed to stay protected.

• Investigate the project’s team, track record, and reputation in the crypto community.
• Review the project’s whitepaper for technology details, use cases, and roadmap.
• Seek unbiased opinions and experiences from forums, social media, and crypto communities.
• Check if the project complies with relevant regulatory standards.

Remember, cryptocurrency markets are highly speculative and volatile, with no guaranteed returns. Exercise caution and only invest what you can afford to lose.

At Cuberium, we use industry standards to avoid losing funds and data. Remember that the wallet owner is the only person signing transactions, releasing funds from the wallet, and gaining access to funds for intelligent contracts. Always make sure that you know which smart contract you are dealing with!

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Сuberium
Сuberium

Published in Сuberium

Create, play, and earn in your own virtual world.

Cuberium
Cuberium

Written by Cuberium

Create, play, and earn in your own virtual world.