8 Cryptocurrency Scams You Should Avoid in 2023

Cryptocurrencies have been the talk of the town since the past few years with its share of both good and bad. Crypto market has recently been introduced in the global financial markets, and with its immense risk factor, it has proven to make a lot of people a lot of money. But the risk and the good always come with a price, crypto market has faced many scams since the beginning.

Many big crypto investors have also been fooled by these scams which shows the expertise of the scammers and how difficult it is to avoid them in the financial market.

There are many scams and frauds related to cryptocurrency that have been highlighted a lot recently. The cryptocurrency scams are basically when scammers trick the individuals into providing them with the cryptocurrency transactions and in return they steal their personal information as well as crypto account information stealing both money and personal information from the user.

Let’s take a look at 8 of the most common cryptocurrency scams so you can avoid them if you ever run into them:

Cryptocurrency apps that are not real: There are many cryptocurrency apps that are actually not the real ones, but the fake apps that are designed to take your personal information. These apps usually show that they are associated with any known coin in order to gain people’s trust.

To avoid such apps, one should download only the authentic and well-known apps to trade in cryptocurrencies and not indulge in schemes like double coins or other similar rewards.

Social Media Scams: Similar to other frauds in the financial markets, the cryptocurrency also faces these frauds such as account hacking, misuse of personal information, etc. This can be done by sending fake emails or making fake calls where the user is asked to provide their login credentials for either updating password or for any other fake reward.

This situation can be avoided by ensuring that you do not give your password to anyone on social media, no matter how lucrative their scheme. You can also download call recording app on your iPhone to ensure that all your calls are recorded which you can use later in case of any crypto related cyber crime as evidence. There are many call recording apps available, the best phone call recorder iPhone has to offer is iCall. The app iCall offers free trial and later you can use it for a nominal subscription fee over the year. The call recorder app will help you keep track of any scam calls as you can later review your calls to find out if someone has made fake calls to you.

Pump-and-dump: This scheme is also quite common among stock market users, but is not widely used on crypto to scam people. What actually happens in this scheme is that some big names buy a large amount of a certain currency which drives up its price and creates false hype about it in the media. This is the pump. Later, once people have invested in that currency, they take out all his money and sell it, bringing the price to near zero, which is basically the dumping part of the scheme.

The scheme can only be avoided by making informed and wise crypto investment decisions. It is essential to do complete homework before investing in any currency.

ICO scams: ICO scams are quite common whereby the investors are asked to pinch money for a fake coin.

Be sure to do your research before investing in any coin, especially if it is a new one.

Using YouTube videos to scam potential investors: YouTube is increasingly being used to lure people into fake schemes. An ID is created using fake personal details on YouTube and then they start live session for people to join and win gifts only at that particular point. This gives users no time to think through and they fall into the scam of sending cryptocurrency to the fake user to participate in the giveaway.

Like other social media scams, one should do proper research before trusting any online entity. On YouTube, only the verified accounts with gray badge should be trusted. One should also look at the content posted by that particular channel and whether that channel is recent or has been around for a long time. Any kind of rash decision in crypto can cost you a lot of money.

Rug pulls: There are many digital games available that are widely used for crypto scams. The people in the game convince you to send money in the form of crypto to the scammers, these games are generally popularized by various famous social media sites. A squid game scam is very popular these days, also known as backtracking, due to which the scammers have stolen about 3 million dollars through this scheme.

This can be avoided by researching every investment deal and by ensuring that you don’t fall into any trap to get large sums of money.

Ponzi Schemes: The business opportunity scams, also known as Ponzi schemes, by which the investors are promised high rate of return, which is obviously a scam.

This can be avoided by checking the value of that particular crypto coin you are investing in and also reading reviews about the individual or company offering such scheme.

Dating Sites and Apps: The dating apps have recently become a hub for scammers where they look for individuals who are looking for a relationship and are asked for gifts etc. to pay in the form of crypto. Many people have been reported to have lost huge amounts of money to this romance scam.

Avoid such scams by not easily trusting anyone online and make sure to do background checks before providing anyone with your personal details as well as crypto rewards.

There are many crypto scams available online which can be avoided with the help of thorough research online. You should also report such cybercrimes to authorities to ensure that scammers are caught, and phone recording through iCall, and email evidence can be of great help in such cases.