Cryptocurrency is a digital currency that is popular as an investment option these days. It is maintained and managed by a decentralized system; Needless to say, the cryptocurrency investment space is full of scammers. Additionally, the lack of regulation gives scammers an opportunity to spread.
Stay away from the cryptocurrency scammers threats by taking proper countermeasures. Knowing about the methods used by crypto scammers can save you from future regrets. Some strategies owned by criminals cryptocurrency scam This article is discussed.
There are a few things to consider before investing in cryptocurrencies,
- Scammers and fraudulent websites
- phishing scam
- Pump and dump scam
- affinity fraud
- extortion scam
- Government identity fraud
- ICO (Initial Coin Offering) scam.
- Online Dating Scam
Scammers and Fraudulent Websites:
Illegal and corrupt scammers create fictional websites to trick people into transferring their crypto coins. Clever crypto scammers copy the design and domain names of existing legitimate websites to fool investors. Through these websites, they collect investors’ information in order to access their accounts and sometimes steal their money directly.
A phishing scam occurs when scammers try to play pranks via email. Crypto scammers target random people and spread malicious links via email. These links redirect them to their rogue websites where they continue stealing cryptocurrencies.
Pump and Dump Scam:
The pump and dump scam is a simple strategy that is most popular with investment scammers. Scammers who perpetrate this scam first buy crypto in bulk to increase the value of the crypto. They sometimes even spread fake news and then sell the coins en masse when they successfully inflate the price. This strategy causes other investors to sell their crypto coins at a loss.
Affinity fraud occurs when a scammer targets a group or organization motivated by a specific belief. They employ such tactics to deceive people in large numbers. They find such groups and join one of them and start harassing the members of the group. Typically, scammers who master this strategy target the leader of the group, believing that if they successfully manipulate the leaders into doing what they suggest, it will be easier to influence the interests of the other members.
Blackmail scams can be considered blackmail because scammers first obtain their target’s personal information and then threaten them. The scammers force them to transfer their crypto coins to the scammer’s wallet, otherwise claiming to make their private information public. Sometimes they don’t even have private details and they text people who claim to have them at random, forcing them to transfer crypto coins.
Scammers using impersonation strategies often pose as government agents because people readily trust the government and rarely think twice before giving out their personal information and identity. But the truth is that government agencies are very unlikely to randomly call people for this information, especially when it comes to cryptocurrencies. As mentioned earlier in this article, everything related to cryptocurrencies is managed and governed by a decentralized system and centralized systems like banks and governments have nothing to do with it.
Initial Coin Offering (ICO) scam:
Some cryptocurrency companies raise funds when they decide to mine a new coin. To raise funds, they usually offer tokens to investors to get higher returns in exchange for upfront payments. This process of raising money is called an Initial Coin Offering, or ICO for short. unfortunately, cryptocurrency scam Criminals see it as an opportunity to make a profit. Disguising themselves as such a company, they contact their targets and ask for an advance of money in the name of the initial coin offering. Crypto investors should be aware of such offers as it is difficult to differentiate between legitimate and illegitimate companies.
Online Dating Scams:
Crypto scammers find online dating sites a great platform to commit fakes. They target random people posing as their fans and channel their interests into cryptocurrency investments. Scammers contact them posing as investment enthusiasts and somehow convince them that their account is not safe. They ask them to give them access to their wallet for safekeeping, but instead of keeping it safe, they transfer their coins to their own account and cut off all communication platforms.
To stay ahead of widespread scammer threats, a cryptocurrency investor needs to be more cautious. Check everything before trusting you. Conduct independent research before trading your crypto coins to an unknown person.
Last but not least, remember that there are many fund recovery organizations on the internet that help victims to get their lost funds back. You can simply contact them and get their help in recovering funds.