What is Scam? | CryptoWallet.com

What is Scam?

Cryptocurrency scams are becoming regular in the crypto space today and new investors have often fallen victim to some of them. A cryptocurrency scam is a type of investment fraud that involves someone stealing or fraudulently acquiring crypto assets from investors.

Recently, Bitcoin’s website was hacked by scammers who stole $17,000 from susceptible investors who fell for the fake offer on the site. Although the website is now restored, the reason behind the attack is still unknown.

Popular Cryptocurrency Scams 

Here are some of the most common cryptocurrency scams you should beware of:

  • Phishing Scam

Some scammers do this by sending random emails containing links to irresistible investment opportunities to several people. Once payment is received, the website will be taken down leaving their victims empty-handed. Some also create clones of a regular exchange site which could lead to loss of funds for investors who use the site.

  • False Celebrity Endorsement scams

This is a scam where fraudsters make use of pictures or videos of celebrities to advertise a non-existent investment platform to lure investors to invest with crypto or fiat currencies.

  • Cloud mining Scam

Some cloud mining software enables people to mine crypto without solving complex mathematical problems. This has given rise to fake cloud mining platforms which steal assets from investors 

  • ICO Scam

This is when fraudsters launch a fake coin that promises to have a high return on investment and convince several investors to raise money for the project. Once enough money has been raised, the scammers vanish with investors’ funds.

  • Online Dating Scam

Scammers lure investors on dating sites into a long-distance romantic relationship with them and to gain their trust. After receiving money from victims, they vanish.

How do I protect myself from cryptocurrency scams?

Even if crypto scams can be quite hard to spot and convincing, there are ways to avoid being caught out.

  • Protect your private keys: Never share your private keys with anyone and store them securely.
  • Beware of crypto cold calls & emails : Never share your personal details over cold calls of crypto investments. And don’t click on links from random emails 
  • Is it too good to be true?:  Be wary of investment opportunities or platforms that offer ridiculously high return on investment. If it appears too good to be true, then it is.
  •  Don’t be pressured to invest in a haste. Some scammers offer bonuses or discounts to persuade you to invest hastily on their dubious opportunities. Take your time and do your research before investing any money.