Scams are becoming more and more sophisticated, maximizing on new technology and often targeting individuals personally, developing emotional relationships. So how do I spot a crypto scam? As they become harder to spot, we wanted to share an overview of the main scams we see and what to be mindful of.
The Types of Crypto Scams
Romance Scams: Fraudsters pose as romantic interests to manipulate victims emotionally and financially. They gain trust, request crypto or money and cause significant financial losses, often sharing websites and opportunities and even offering to “lend” crypto to get you started on fake exchanges. If you start an online relationship that takes a turn into the realm of crypto, be sure to verify the identity of your beau and triple check every aspect of what they share with you.
Exit Scams: Some crypto projects or platforms suddenly shut down, taking users’ funds with them. This is known as an exit scam, affecting investors, traders, and users of these services. Research the credibility of crypto projects and the identity of those involved, reverse search team photos and triple check before engaging.
Dusting Scams: In dusting scams, attackers send tiny amounts of cryptocurrency to your wallet to trace and deanonymize your transactions. Once hackers or scammers deanonymized the wallet, they can use the information in phishing attacks targeting the owner. Be cautious of unfamiliar incoming transactions and if you spot any unknown tokens in your wallet do not interact with them in any way as this may allow scammers to gain access to your wallet and soon after clean it out.
Phishing Scams: Scammers create fake websites or send deceptive emails that appear legitimate. They aim to trick you into revealing sensitive information like private keys or passwords. Always double-check URLs and email sources.
Job Scams: Scammers offer fake job opportunities related to cryptocurrency, requiring upfront payments or personal information. Verify the legitimacy of job offers and don’t ever pay for employment.
Impersonation Scams: Scammers impersonate influential figures, celebrities, or crypto experts on social media. They lure victims by promising giveaways or investment opportunities. Be mindful of deep fakes and AI, always verify accounts and never send funds to strangers.
Never share your private keys. The only reason anyone will ask for them is to steal from you.
Jean-Paul de Jong, BlockFo Partner – Investigations and Security
Other Typical Scams
Ponzi Schemes: These scams promise high returns on investments, but they rely on funds from new investors to pay earlier ones. As new investments slow down, the scheme collapses, and many lose their money. Be cautious of unrealistic returns, especially during bullish periods.
Fake ICOs: Fraudulent initial coin offerings (ICOs) entice investors with a new cryptocurrency project that doesn’t exist. Once funds are collected, the scammers vanish. Research and verify ICOs before investing.
Fake Exchanges/Wallets: Scammers create fake cryptocurrency exchanges or wallet services that look real. Users deposit funds, and the scammers steal them. Only use reputable and well-known platforms.
How BlockFo Can Assist
We hope that this article was useful, such that you no longer wonder ‘How do I spot a crypto scam?’. So when you do, or if you have any doubts or concerns that you might have been scammed, please contact our dedicated team promptly.
Our team specializes in blockchain forensics, using advanced tools to track and trace stolen crypto and help build strong cases against scammers.
