The Biggest Crypto Scams and How to Avoid Them

The rise of cryptocurrency has attracted not just enthusiastic investors, but also sly fraudsters.  With millions lost in crypto scams, these deceptive schemes feed off the excitement and novelty around this digital currency. Unlike traditional investments, cryptocurrency operates in a less regulated space, creating the perfect ground for scams. This guide will discuss some of the most common crypto scams, equipping you with the knowledge to identify red flags and safeguard your hard-earned money.

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 To Do If You Lost Money To A Crypto Scam?

If you suspect you’ve been a victim of a crypto scam, the first thing you should do is change passwords for your accounts on the suspected platform and any accounts at risk. Next, gather any documentation related to your interaction with the platform, including transaction records, emails, and screenshots. Report the scam to the relevant authorities.

To further investigate your case, trace funds, and facilitate the process of fund recovery, submit a complaint with Cryptocointrace.