The Biggest Crypto Scams and How to Avoid Them
We’ve all encountered a crypto currency scam–at least we have seen them on social media, and YouTube or may have received an email or Whatsapp spam. Consumers are getting bombarded with online deals of all types–most of them fake.
The number of crypto currency scams is increasing at a rapid pace. The FBI has identified crypto scams as the fastest-growing type of online fraud.
Billions have been lost in crypto currency scams. These frauds involve tens of thousands of customers. This is a high price to pay for getting involved in digital currency. However, that isn’t to create the impression that crypto is a fraud. There are many legitimate cryptocurrency services and platforms.
Then again, it’s important to be careful when using any crypto exchange or engaging in crypto mining or trading. Check licenses and make sure you can verify the people who run the crypto operations. Never give away your codes or keys and keep all of your personal data private.
Crypto Romance Scams
They say love is blind, but it is a good idea to keep your eyes open when trading online. One of the most common type of online fraud are crypto romance scams. These begin with a person claiming to be looking for love. They may show photos of themselves that put their perfect looks and opulent lifestyle on display.
However, this is only an illusion. The stark reality is that these photos and this impression are entirely fake. The tip-off that the romance isn’t genuine is that the person will start to turn the conversation to finances.
They may ask for a temporary loan, say their wealth is being locked up until they can give a deposit. They will also ask for cryptocurrency only or may even insist on access to crypto codes. These relationships don’t end just in heartbreak–the victim’s finances will be broken as well.
Crypto Mining Scam
A crypto mining scam will promise that its investors can literally make money. Cryptocurrency is generated through computer programs solving complex problems. This may sound too technical for most people, and that is why they may seek crypto mining services for assistance rather than going alone.
However, there are many more crypto mining scams than there are legitimate opportunities. Many of these are actually Ponzi schemes and they are like scam crypto brokers in this sense.
Whats app Crypto Scams
Many of us use Whatsapp groups, but one unfortunate effect is Whatsapp scam. People who get our numbers can give us unsolicited advertisements for their services. Whats app crypto scams target people who may be desperate to make some extra money. These often turn out to be Whatsapp crypto scams and not real opportunities.
Facebook, Twitter and Instagram Crypto Scams
Social media is a kind of jungle where crypto frauds lurk waiting for victims. Instagram crypto scams may involve people asking you to join groups for money-making opportunities. Loan scams and romance scams also flourish on social media.
NFT Crypto Scams
NFTs or non-fungible tokens are a great way to preserve artwork, texts, and logos. They are intended to protect intellectual property, but actually, many NFTs are actually counterfeit. If you are offered an opportunity to invest in an NFT, make sure it’s the real thing before parting with your cash.
USDT Scam
A USDT scam usually involves a potential victim receiving a message saying they have won a certain amount of USDT. All they need to do is to click on a link. However, once they’ve done this, their device may be infected in malware and they could be hacked.
How to Avoid Crypto Scams
Crypto scams are everywhere. The answer isn’t to ditch cryptocurrency. Instead, know how to keep your money safe on the blockchain with the following tips.
- Research all investment opportunities
- Work only with registered brokers and exchanges
- Keep your codes and keys safe
- Don’t be fooled by promises of huge returns
- Be skeptical-verify and check everything
What You Should Do If You Have Lost Money to a Crypto Scam?
If you suspect you have lost money to a crypto scam, it’s important to close your account with the broker or the exchange and demand a withdrawal. If you do not receive a withdrawal, contact CryptoCoinTrace experts. We consult with clients, advise them on claims and have the tools and methods to track down your funds. The sooner talk to us, the greater the chances of a successful claim!
