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The most common crypto scams
The FBI’s IC3 report highlighted various crypto scams, most of which involve strong social engineering tactics.
Investment fraud
First off, we have investment fraud. Scammers contact you via call, text, or email, promising huge (unheard of) profits if you invest in cryptocurrency. They tell you that everyone is investing and making massive returns, and if you don’t, you will miss out. This usually works on people who are eager to invest but aren’t sure how to get started—in other words, those who have the cash to invest but aren’t very tech-savvy. Losses from investment fraud schemes reported to the IC3 rose from $2.57 billion in 2022 to $3.96 billion in 2023, an increase of 53%.
Relationship building scams
Scammers sometimes build a relationship with you to make the scam seem legit. They use dating apps, social media, professional networking sites, or encrypted messaging apps to get close to their targets. Once they’ve gained your trust, they bring up cryptocurrency investment. They might claim they have some expertise or know an expert who can help you make big money. Then, they push you to use fake websites or apps—ones they control—to invest in crypto. To make things even worse, scammers sometimes go after the same people again by pretending to be fake crypto-recovery specialists. They promise to help recover the money the original scammers stole but end up taking even more cash and disappearing with that, too. “There is one thing these scammers typically will not do – they will not meet with you in real life,”
IC3
HOW TO AVOID BECOMING A MOVING SCAM VICTIM
Scammers are targeting elderly folks
- Under 20
- 20-29
- 30-39
- 40-49
- 50-59
- Over 60
DON’T FALL PREY TO THIS ELECTION SEASON’S CRAFTIEST SCAMS
What you need to know before getting yourself into crypto
1) What steps should someone take if they suspect they’ve fallen victim to a cryptocurrency scam?
If you suspect that you’ve fallen victim to a cryptocurrency scam, it’s crucial to act quickly to mitigate potential losses. First, immediately stop all transactions with the suspected scammer – this includes halting any ongoing investments, withdrawals, or deposits to prevent further loss. Next, change your passwords and enable two-factor authentication on all your related accounts if you haven’t done so already. This includes your email and any other linked financial accounts.
2) How can individuals verify the legitimacy of a cryptocurrency exchange or platform before investing?
Before you invest in crypto, search online for the name of the company or person and the cryptocurrency name, plus words like “review,” “scam,” or “complaint.” See what others are saying. You can also check for any news articles about the exchange. Positive news about partnerships or technological advancements can be a good sign, whereas reports of security breaches or legal issues are red flags.
3) Are there any specific security measures people should implement to protect their digital wallets and cryptocurrency assets?
Strong, unique passwords and two-factor authentication are a must for digital wallets and crypto assets. We also recommend hardware wallets for storing large amounts of crypto assets, as these are not connected to the internet and provide superior protection against hacking. It’s important to regularly update wallet software to ensure
vulnerabilities are patched.
4) What advice would you give to someone who’s interested in investing in cryptocurrency but is concerned about potential scams?
It’s wise to be concerned about scams in the crypto universe, so you’re already on the right track! Keep this mindset but know that there is a safe way to invest in cryptocurrency. Start by first investing time in researching and understanding different cryptocurrencies, including their market trends, technological foundations, and community and developer activities. Only use reputable exchanges and wallets which adhere to regulatory standards and offer robust security measures.
HOW SCAMMERS ARE USING YOUR PERSONAL DATA FOR FINANCIAL SCAMS AND HOW TO STOP THEM
5 other important ways to protect yourself from crypto scams
1) Be skeptical of “too good to be true” offers:
2) Avoid sharing personal information:
3) Have strong antivirus software installed on all of your devices:
4) Watch out for unsolicited contacts:
Remove your personal information from the internet
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Kurt’s key takeaway
Do you feel confident about your understanding of how cryptocurrency works, or does it still seem confusing? Let us know in the comments below.
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