Crypto Scams: How to spot them?

We’ve all gotten emails or texts claiming that we’d won millions of dollars for taking part in a tournament we weren’t even aware of at some time in our life. We usually all laugh it off and move on since we know the email or message is a scam right away.

Accomplish you believe you’ll be able to do the same thing with cryptocurrency? How easy is it to tell the difference between a legitimate cryptocurrency project and a crypto scam? Everything you need to know may be found right here.

Crypto Scams Are On The Rise

Cryptocurrency is rising to unprecedented heights with each passing day. As cryptos continue to attract the interest of individual and institutional investors all over the world, they’ve also become a target for con artists attempting to earn quick money by manipulating those who will do everything to get rich.

Scammers frequently make genuine promises and integrate into the crypto realm by taking advantage of the internet’s anonymity. Most of the time, these promises appear to be too good to be true, and people easily fall for them. This occurs because a vast number of individuals are still inexperienced with bitcoin, making it difficult for them to distinguish between legitimate and fraudulent transactions. Furthermore, many people feel that cryptocurrencies are technical terms that hardly everyone understands.

This is why it’s vital to understand how cryptocurrency works and how it varies from cash and other payment methods before you start using it or investing in it. If you don’t want to get caught in a scam and lose all of your money, you should learn how to spot cryptocurrency scams and suspicious crypto accounts.

Here are some common cryptocurrency scams and how to recognize them :

Imposter Scam

Government leaders, companies, and well-known people are routinely impersonated in imposter schemes. Cryptocurrencies are now responsible for just about 14% of reported losses. The great majority of these scams (almost 86 percent) are carried out with fiat money. This ratio is anticipated to alter as the crypto business continues to expand at a dizzying rate. In the next years, if current patterns continue, the percentage of digital money losses will surely rise.

Indeed, according to FTC statistics, crypto fraud complaints have been steadily increasing since 2020, with over 7000 customers alleging losses totaling more than $80 million.

Impersonator scams are sometimes combined with giveaway schemes, in which the imposters promise to double or equal the cryptocurrency they receive. Several users have also reported mistaking a scammer’s wallet for that of a celebrity or influencer and sending cryptos to it. Over the previous six months, for example, people have reported sending more than $2 million in bitcoins to Elon Musk impersonators.

Scammers may also use social media sites and Telegram groups to mimic WazirX support, management, or staff, publishing false links. These kinds of fake accounts may be found all over the internet. Please don’t take proposals from Twitter or Facebook seriously, especially if the result appears hard to attain.

The simplest approach to tell if an account is fake is to look at the expected returns. The only red signal you need is if a crypto offer seems too good to be true. It appears to be too wonderful to be true, and it isn’t.

Clone Websites

Scammers frequently use bogus websites as a means of deception. Many people have been tricked into accessing websites that claim to provide bitcoin investment or mining possibilities but are actually scams. These websites are frequently well-designed and may elicit a sense of credibility, allowing users to quickly and without reluctance transfer their cryptos.

Such websites usually offer different investment tiers, with the bigger the investment, the higher the return. To make websites appear trustworthy, fake testimonials and cryptocurrency lingo are utilized, but visitors must recognize that such bold boasts of unbeatable guaranteed returns are just wrong. These websites may even make it appear as if your money is growing. When you try to cash out your purported earnings, though, you’ll be prompted to send even more cryptocurrency – and you’ll finally get nothing in return.

There are a few indicators that the website you’re working with is legitimate or not. If you don’t see a lock icon in the URL bar, for example, it means the site isn’t secure. Another issue to be aware of is being redirected from one site to another while making payments. The redirect link may appear to lead to a valid site, but a closer look at the URL reveals that it contains the number zero rather than the letter “o.” As a consequence, double-check that you’ve entered the correct URL into your browser.

There are a few indicators that the website you’re working with is legitimate or not. If you don’t see a lock icon in the URL bar, for example, it means the site isn’t secure. Another issue to be aware of is being redirected from one site to another while making payments. The redirect link may appear to lead to a valid site, but a closer look at the URL reveals that it contains the number zero rather than the letter “o.” As a consequence, double-check that you’ve entered the correct URL into your browser.

Romance Scams

Schemes that use online dating to lure people into bitcoin investment scams are known as romance scams. Dating apps and social media are commonly used by scammers to contact their victims. They then pretend to be the victim’s potential love partner in order to gain their trust and persuade them that their connection is real. The fraudsters masquerade as crypto experts and urge the victim to invest in cryptocurrencies by sending money to them after winning the victim’s total confidence. Once the victim contributes, the fraudster even allows the victim to take a small profit from the phoney account.

Following a successful withdrawal, the fraudster instructs the victim to “act swiftly” and spend larger quantities of money. When the victim is ready to withdraw cash again, problems begin to surface. The fraudster explains why the money can’t be withdrawn for a variety of reasons, and the virtual relationship ends when the victim stops providing payments.

Several persons have told the FTC that they misunderstood themselves for being in a long-distance relationship until their love partner started talking about a hot crypto opportunity, which they then became involved in. Around 20% of the money lost in romance scams has been transmitted in cryptocurrencies since October 2020, with many of the complaints coming from those who thought they were investing.

Here’s how you may avoid being a victim of a romance scam. Never send money, trade, or invest based on the advice of someone you’ve only met online, and never discuss your finances with strangers. Make sure you don’t fall for those who claim to have exclusive investment opportunities and pressure you to act as soon as possible. If a caller, love interest, organization, or anybody else insists that you deposit cryptocurrency into their wallets, you can be sure it’s a fraud. Also, don’t give out crucial or personal information to complete strangers over the internet.

Final Thoughts

Crypto scams come in many forms: phishing scams, giveaway scams, romance scams, rug pulls, pump and dumps, and so forth. You might lose all you’ve worked for if you’re not careful.

Before you start investing in bitcoin, make sure you’re extremely careful, and follow your instincts if anything doesn’t seem right or add up. Bitdenex never asks users to deposit funds into cryptocurrency wallets.