How Do You Identify and Avoid Common Crypto Scams In 2024

With advancements in technology and the expansion of our digital world, cryptocurrency has found its way into making the lives of individuals and companies much easier. Cryptocurrency is a fast-growing payment method that has attracted a great deal of people all over the globe. Cryptocurrency makes it easier to make payments, as it does not need any verification from any institutions.

Although convenient and easy to use, there are potential risks that come with making use of Bitcoin and the many altcoins that are now available. Several fraudsters and scammers take advantage of the cryptocurrency , which means that several people fall victim to scams and potentially lose their funds. Here’s what to look out for:

How To Avoid Being A Victim Of Cryptocurrency Scams In 2024

If you have already fallen victim to cryptocurrency scams and fraud in 2023, fear not, as that will not happen again with these tips. When making use of online platforms, ensure to stay on private networks to avoid others stealing your login credentials.

Before buying a new crypto, red flags to look out for include a poorly written website, incomplete roadmap or white paper and a team that has not been doxxed. Furthermore, big social media followings can point to wide interest in a project – but ensure the followers are legitimate and not just bots (source: ).

There are some other tips that you can use to avoid being a victim of crypto scams, which include:

• Do not accept free crypto coins from unknown people or companies
• Seek experienced guidance from reputable cryptocurrency professionals
• Make use of legitimate platforms
• Make it a habit to check the crypto scammers list and trends
• Safeguard your confidential keys
• Verify the internet sites link more than once to ensure they represent the reputable business they claim to be

What Are Cryptocurrency Scams?

Cryptocurrency scams involve scammers or fraudsters impersonating companies in an attempt to offer fraudulent crypto coins or to persuade you to send your cryptocurrency to some digital wallet.

Joining the crypto world can be quite risky if you are not familiar with the scams and frauds that you might be subjected to. The world of cryptocurrency is growing and evolving, and in turn the scams that one may come across often change. This is evident from the rate of cryptocurrency scams having risen by 23% in 2023. There have been several trends in the crypto scams for 2023 that all crypto users – beginners and experts – need to know to avoid being the next victim.

To avoid being the next target of cryptocurrency scams, the different kinds of cryptocurrency scams to be aware of, and the top 5 most common include:

Phishing

Phishing is a social engineering scam that involves stealing personal information such as login details or credit card numbers. Within the world of cryptocurrency, phishing fraud involves the targeting of information that is related to virtual wallets.

Giveaway Scams

Numerous people often fall for fraudulent giveaways. The giveaways tend to look quite promising of greater benefit, and people forget the potential risks that may come with such huge benefits. Fraudsters can often hide behind the characters of celebrities or well-known crypto influencers or entrepreneurs to successfully scam victims. They make huge promises, such as providing more crypto through a giveaway.

Blackmail Schemes

Blackmail schemes are characterized by scammers blackmailing crypto users to gain access to their private crypto keys or passwords or their cryptocurrency. The scammers state that they have information that could be detrimental to the character of the user therefore to prevent them from exposing or releasing this information, they need to send them these details.

Fake Romance Scams

Online dating apps or websites are the perfect place for fraudsters to target their next victims. Fraudsters taking part in fake romance scams pose as potential partners and make it seem like they are interested in being in a relationship with individuals. Soon after they secure the relationship, they persuade the cryptocurrency user to partake in crypto opportunities or to send them their crypto coins or private details.

Big Investments or Business Opportunities

Many people rely on investments to grow their names and have something to themselves, thus when a potentially fruitful investment comes along, they want to grab it right away. However, with cryptocurrencies, people need to stay vigilant at all times and avoid investment opportunities that promise definite returns.

How To Pick Up On Crypto Scams

Not all people offering you cryptocurrency are as legitimate as they say. As established, some are scammers posing as respected or new businesses or even celebrities. Here are some of the cryptocurrency scam red flags that you need to look out for:

• Inquiries about personal data
• Unexpected offers
• Techniques of pressure
• Promises of large returns that come with no risk
• Being ed to download an application on your phone or computer