Cryptocurrency Scams  &  How to Prevent Them

Once you begin dealing with cryptocurrency, you are attracted to its risky transactions. You can find scams everywhere online, even on cryptocurrency exchanges.

Cryptocurrency scams are a form of investment fraud that involves criminals taking advantage of people looking to invest in the new world of digital currencies.

Revenue from crypto scams spike 81% to a near-record $7.7 billion in 2021, A report says.

"Rug pulls are prevalent in DeFi because with the right technical know-how, it's cheap and easy to create new tokens on the Ethereum blockchain or others and get them listed on decentralized exchanges (DEXes) without a code audit," said Chainalysis.

What & Why are some common cryptocurrency Scams?

The offer usually involves investing in cryptocurrencies. After you visit the website, you’re encouraged to invest and start making money right away.

1. Investment or Business Opportunity Scams

In imposter scams, criminals pretend to be a trusted source to manipulate cryptocurrency users into sending money.

2. impersonation cryptocurrency scams

someone claims to have sensitive information about you – whether it is photos, videos, or other information – and they demand payment or otherwise threaten to release your information.

3. Blackmail or extortion cryptocurrency scams

messages are often phishing scams pretending to be from legal sources, which is actually a scam. A phishing cryptocurrency scam involves a false demand for payment.

4. Phishing Cryptocurrency Scams

To become fully onboarded to a company, users are usually asked to pay for training. Afterward, they are encouraged to pay the training fee, which is never refunded.

5. Employment Cryptocurrency Scams

To read How to Prevent and report  Cryptocurrency Scams