Cryptocurrency Scams Unmasked: The Battle against Digital Deceit

The craze of cryptocurrency is vividly acceptable in youngsters and young adults. We understand that the hype cryptocurrency brings to the market is undeniable. However, we cannot deny the fact that cryptocurrency scams have been enhancing at an alarming rate since post-Covid.

Netizens, effortlessly hang onto digitalization, which automatically leads to a battle against digital deceit. Cryptocurrency is normalized and millions of people have joined this community - trading, mining, and investing have eventually become mediocre.

However, money games are not as easy as they seem to be. In today’s scenario, frauds have evaded all circumstances to jeopardize traders and investors facing these malpractices. On that note, we can say that money and scam have a correlative bond; especially for those who are unaware of the situations that keep occurring on the digital medium.  

In this blog, we make our readers understand the nine latest cryptocurrency scams to safeguard people from becoming victims.

Nine Latest Cryptocurrency Scams

Digital deception is misinterpreting the truth served to the public. In this era of digitalization, when every tiny piece of information is available with a click, literally no one has time to re-check the facts.

But see how cryptocurrency scams are occurring under your nose, and you are clueless. This blog will be helpful to those who are learning the technicalities but also looking for an information-centric approach.

Ponzi scheme:

This scheme is one of the traditional yet tricky schemes where a con artist entices new investors to invest in it. While convincing them, scammer’s amateur investors on high profits and no risk. It lured investors a lot, resulting in investment in the scheme without any second thought.

When the money is received from investors, scammers return the promised amount to the previous investor, and so on. The remaining amount goes into the scammer's pocket. However, this is not an every-time case. For once or twice, fraudsters genuinely make payments, but over a period of time when all the money is channelized, the process goes in vain.

Fake Initial Coin Offerings:

A fake ICO is the major loophole in the system. Here, scammers try to make forged cryptocurrencies look real. The kinds of activities scammers do, to gain investor's trust, are mentioned below:

• First, scammers create fake cryptocurrency and promote it as an authentic investment opportunity.
• Second, these scams occur on social media applications and online channels. Millions of people are on social media platforms. It gives swindlers a golden opportunity to market the fake ICO.
• Third and most important, they even perform fake endorsements from celebrities and industry experts to enhance the ICOs' credibility.
• Scammers create fake whitepapers and other materials to construct a wrong illusion in front of the public.

Hoax Exchanges:

It is a scam that creates a fake trading platform that looks genuine to make a fool out of investors. A place where everything is flawless, it creates doubt. This platform works similarly to any other legitimate platform from an investor's eye. It allows buying, selling, and trading of crypto currencies. Phishing scams and fake websites play a vital role in misleading users.

Dummy Wallet Addresses:
 
Every Wallet address is unique, hence keeping it careful becomes of utmost importance. Whenever we talk about money, scammers keep following us. It is an easy job for a scammer to dupe investors by creating a dummy wallet address. They download malware and do settings that can directly send money in red hands. To fulfill this fraud-phishing scam, fake websites play a vital role.

Cloud Mining Scams:
 
It is one of the terrible scams that can snatch a lot from you to line their own pockets. In this scam, forged companies promise to mine cryptocurrencies but they are wrongly using customer funds. On top of all that, they keep enticing investors by frequently making fake promises and offering unrealistic returns.

Note: A legitimate company will let you know about their policies and their work. In addition, they will not make any promises. However, if someone is doing so, the safest option is to undo the deal.

Forged Crypto Airdrops:

The crypto currency platform features a lot of facilities and activities. On the other hand, scammers have a crack in each of the activities. Let’s understand crypto airdrops.

A crypto airdrop refers to crypto projects that send tokens and digital assets as a reward to the community. It results in building excitement and attracting talent.

Wondering, right? It is also true that scammers forged crypto airdrops. Fraudsters illegitimately create a legitimate company and promise to give free cryptocurrency in exchange for private seeds. Once the keys are transferred to a forged crypto airdrop, scammers will fly with your money in thin air.

Malware Scams

Malware scams are common, let’s see how this scam works:

• Scammers use malware scams a lot. It easily steals hard-earned money from customers by being a disrespectful user.
• It is a software designed with the aim to harm, disrupt and gain an unauthorized connection with a computer or a network.
• Often, it is used to steal digital assets and wallets.
• Once the account access is received, scammers take the entire amount and leave investors with no resources of recovering funds.

Note: However, there are several recovery agencies. If you ever become a victim of a malware scam, registering with a financial recovering agency won’t harm you.

Flash Loan Attacks:

Now, this is a fraud that takes place in the short term or within a second trading concept. In a blink of an eye, a scam might occur. Before moving on- let’s understand about flash loans.

Flash loan: A flash loan is a concept that allows traders to purchase tokens from a platform at a low price and sell them on other platforms to make a profit, one transaction to repay your loan.

However, flash loans are unsecured as they do not require credit checks. It gives an advantage to the scammer to attack by manipulating prices and decentralized finance (DeFI) platforms.

Exit Crypto Scams:

In several cases, scammers abruptly disappear after seizing investors' hard-earned money. These scams get accomplished by tricky motives such as ambiguous promises, falsifying team identities, and misleading information. In most cases, scammers sweet talk trap investors, and they blindly start trusting. It results in losing a huge amount.

Last Words

Cryptocurrency is one of the best platforms to trade and invest. The hard reality attached to the fact is that whenever a huge number of people pertain to the same kind of activity, scammers keep following them. Mostly, novices who participate enthusiastically to earn a lump sum amount become the target.

As there is a high chance that they are unaware of the scamming world. Hence, Scams take place. However, in some cases, big investors have been targeted through sticky talks. Our aim is too aware those who are full of zeal but do not know the picture behind the curtains.

Author Bio

I am Flora, a specialist in the field of scam detection and currently works closely with Financial Options Recovery. As an analyst, his research work involves studying the nature of scammers, dynamics of how these scams roll out, significant red flags, and more. His and Financial Options Recovery primary motive is to create an awareness among potential victims, making it uncomplicated to identify and prevent a scam. At the same time, they assist scam victims recover from the scam incident. To know more about Financial Options Recovery visit: https://financialoptionsrecovery.com/