Scams are not something new in any field, they are updated as technology advances. As the cryptocurrency market rises, there is also an increase in the rate of crypto scams. Fraudsters take advantage of people’s gullibility and sometimes greed. While some scams are fairly obvious to spot, others are difficult for people to recognize because they are presented believably.
For crypto scammers, this is a good deal because once the scam is done, it is very difficult to reverse it and reach those on the other side of the screen. In this article we will tell you what the most common scams are and how not to fall for them, keep reading!
Common cryptocurrency scams
Here are some common crypto scams:
1. Giveaways/raffles on social networks
Social networks are already very widespread, and scammers also use them to deceive people. With this method, they can ask you to send them just 1 BNB/BTC/ETH (and other types of cryptocurrencies) and promise to pay you back multiplied by 10. Too good to be true!
If you find yourself in this type of giveaway, check the account it’s coming from, as it’s most likely fake. Many times accounts from different social networks are cloned to make them look like legitimate and famous characters to gain people’s trust. Note that if a genuine company ever runs these types of contests, you never even have to send your money.
Remember that cryptocurrency transactions are instant and irreversible, so once the payment is made, you cannot get it back. If you see this type of fraudulent offer on social networks, report the account and if they are impersonating a real company, send them a message so they are also aware.
2. Ponzi schemes
With this method, they will contact you to offer you a great investment opportunity with which you will get guaranteed benefits. In the financial world, anything is hardly guaranteed, so you have to be vigilant. This type of scam involves many people and is usually slow to catch on.
The organizer will offer to invest some cryptocurrency – the same with you and other people. The investments will go to a common fund, but the oldest investors will be paid with the investment of new participants. It then becomes a cycle in which new customers must be constantly brought in to meet the payments.
This scam is also quite common and they may contact you via email or social media to try and get you excited. Do not be fooled by the benefits it guarantees, because even if it takes time, the system will explode, making you lose what you have invested.
3. Pyramid schemes
Similar to Ponzi schemes, but somewhat more complex and with a different structure. This is a fairly common method in other sectors such as wellness and personal care. At the top of the pyramid is the organizer, who will recruit several people, who in turn will recruit more. In this way, a very large structure is created that branches out as more people join.
This method promises benefits for recruiting new members who have to invest in the business – in this case with cryptocurrencies. Older members also get benefits here. It forces people to constantly cheat other people to gain an economic margin and you will become part of the fraud if you join as well.
In the long term, it is not a sustainable or viable model due to its large expansion growth. Many of the people who are at the lower levels of the chain end up not only making a profit, but also losing the money they invested in the first place.
4. Fake mobile apps
Not only should you be careful with fake social media accounts, but also with mobile apps. These apps are designed to steal cryptocurrencies from people who install them. How do they do it? When a user uses the app as a wallet or to send/receive payments, they are sending themselves directly to the scammers.
These apps often mimic other official apps that are well positioned in Google. To ensure the security and guarantee of crypto mobile apps, you must download them from the official website. Needless to say, once the transaction is made, the scam is irreversible, so better check before you start using any app.
Some fake crypto mobile apps will also trick you into watching ads to get cryptocurrency as a reward. Why do they do this? They earn revenue from the ads they post and are seen by users.
5. Phishing
Phishing is a common practice in which scammers pose as genuine and trustworthy companies to obtain victims’ personal data. This usually happens in the world of finance and also with cryptocurrencies. Scammers can contact potential victims in different ways – the most common mediums are telephone, email, fake websites or messaging apps.
There is no standard modus operandi for all scammers, but many times they pose as a company’s help desk. Once they contact users, they ask for their passwords or private keys to solve a certain problem with their account. With this data, they can directly access people’s crypto funds.
A legitimate company will never ask for your personal information, so it’s the first red flag if you receive a notice asking for it. Also, do not trust if they ask you to reset your password or some of your information, as the link they provide may lead to a fake and malicious website.
Tips to avoid cryptocurrency scams
Although cryptocurrency scams are updated and scammers find new ways to trick people, we should always be vigilant to avoid any scam. Here are some tips you can keep in mind to ensure your transactions are more secure:
Check the URL of the web pages you visit. Many times the domains are similar to the original. Bookmark your most visited pages as Google may show you a malicious website. Ignore social media or email notifications if you haven’t asked for help. Always communicate with companies from their official pages. Do not share your passwords with anyone. Don’t trust anyone’s good faith and do your own background check.
Final Thoughts
The scams mentioned in this article are just some of the popular crypto scams. Scammers keep updating and finding new ways to scam users. However, the tips we’ve shared can help you spot and save new crypto scams. Also, very important, avoid being greedy, as cryptocurrency scams are usually tempting.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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