15 Common Cryptocurrency Scams and How to Avoid Them

cryptocurrency scams and how to avoid them

The world of cryptocurrency is getting more and more popular. More and more people hear about potential huge profits, which can be earned by trading. It’s not surprising that a huge number of newcomers want to get involved in this rapidly growing market. In the cryptocurrency space, the most common scams are those that take advantage of newcomers to the space. Although many of these scams aren’t unique to cryptocurrencies, the space is still new enough that users are still learning about best practices.

The development of blockchain technology and the cryptocurrency market is interesting. Technical advancements and the quickly expanding new trading paradigm draw enormous numbers, but scammers are among them.

Over the years, many cryptocurrencies have become millionaires. They’ve established themselves as a profitable venture for anyone looking to make a long-term investment.

However, this increase in value and acceptance of core business has had inevitable consequences. While many people have excellent intentions and want to invest in making a profit and being a part of influencing the future of money, some criminals deceive their investments.

Because the number of situations where people lose their cryptocurrencies due to scammers and thieves is steadily increasing, potential investors are sometimes hesitant to join in this burgeoning business. Older investors are likewise avoiding these investments. Therefore, even some common sense rules about investment can be overlooked, leading to a greater likelihood of fraud. By being aware of potential scams and following best practices, you can easily avoid being a victim of cryptocurrency scams.

We’ve compiled a list of 15 common cryptocurrency scams and how to avoid them. You should be able to rapidly detect common fraud strategies and approaches utilized by most scammers by the end of this review.

What is Cryptocurrency?

Cryptocurrency is a type of digital payment system that does not rely on banks to verify transactions. It’s a peer-to-peer system that lets anyone send and receive money from anyone else. Cryptocurrency payments are only digital entries in an online database that identify individual transactions, not real money that can be carried around and exchanged. Your cryptocurrency transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.

The term “cryptocurrency” stems from the fact that transactions are verified through encryption. The purpose of encryption is to assure security and safety. As a result, storing and transferring cryptocurrency data between wallets and public ledgers necessitates sophisticated scripting.

Bitcoin was the first cryptocurrency and is still the most well-known today. It was developed in 2009 and is still the most well-known today. The temptation to trade for profit is at the root of much of the interest with cryptocurrencies, with speculators driving prices sky high at times.

How does Cryptocurrency Work?

Cryptocurrencies are built on the blockchain, which is a decentralized public ledger that records all transactions and is updated by currency holders.

Mining, which requires using computer processing power to solve complicated mathematical problems in order to earn coins, is how cryptocurrency units are created. Users can also buy the currencies through brokers, which they can then store and spend with the help of encrypted wallets.

If you own cryptocurrency, you don’t own anything tangible. You have a key that allows you to move a record or a unit of measurement from one person to another without the need for a third party.

Despite the fact that Bitcoin has been around since 2009, cryptocurrencies and blockchain technologies are still in their infancy in the financial world, with more to come. In the future, bonds, stocks, and other financial assets may all be traded via technology.

Cryptocurrency Examples

There are thousands of different cryptocurrencies. The following are a some of the most well-known:


After being created in 2009, Bitcoin was the first cryptocurrency and is now the most widely traded. The currency was established by Satoshi Nakamoto, who is thought to be a pseudonym for an individual or group of people whose true identity is unknown.


Ether (ETH) or Ethereum is a blockchain platform with its own coin. It was founded in the year 2015. It is the second most extensively used cryptocurrency after Bitcoin.


This money is quite similar to bitcoin, but it has moved faster to develop innovations including faster payments and more transaction-friendly processes.


Ripple is a distributed ledger system that was founded in 2012. Ripple may be used to track bitcoin transactions as well as other kinds of transactions. Many banks and financial institutions have worked with its founders.

Non-Bitcoin cryptocurrencies are referred to as “altcoins” to distinguish themselves from Bitcoin.

What is Cryptocurrency Scam

Cryptocurrency scams use deception to get access to a target’s digital wallet or login credentials. Scammers are attempting to collect information that will allow them to access a digital wallet or other sensitive data such as security codes. In certain cases, this may even include access to genuine hardware. Transferring cryptocurrency to a fraudster directly as a result of impersonation, bogus investment or business possibilities, or other nefarious means is also prohibited.

Related Post: How to Trick An ATM to Dispense Double the Money

15 Common Cryptocurrency Scams and How to Avoid Them

Types Of Crypto Scams

1. Fraudulent initial coin offerings (ICOs) Scam

The simplest approach to carry off a fraud is to create and advertise a fake Primary Coin Offer project. The initial coin offering (ICO) has grown in popularity as a mechanism for lawful enterprises to raise capital via crowdfunding.

Many fraudulent ICOs produce a white paper, launch a social media marketing campaign, post token information on stock exchanges, and hold phony token sales. As a result, many new investors are duped by the promise of a 1000 percent profit from these ICOs and purchase worthless tokens. In a 2017 study, 80 percent of ICOs were fraudulent. Confido was a popular one. They raised $375,000 in November 2017 and then vanished shortly after. The coin price dropped from $0.60 to $0.10 in less than two hours after word got out. After a few hours, it fell to a fraction of a percent.

Centra, an enormous scam ICO that raised $32 million and was backed by celebrities DJ Khaled and Floyd Maver, raised even more money. The two founders were arrested in April 2018, and the coin, like Confido, lost almost all of its value after the news was released.

The following is how it works:

  • The user joins the ICO Telegram group.
  • The user will receive messages from the ICO command that appear to be from an administrator, but they are not.
  • They sell a private bonus to their users. If an ICO bid is 1 ETH = 10,000 tokens, for example, they will offer 1 ETH = 30,000 tokens.
  • Scammers then instruct interested users to send their ETH to a “special address.”
  • Once the user sends money, the scammers vanish.

How to avoid it:

  • Verify the quality of the whitepaper – Are the promised returns too good to be true? Is it riddled with errors?
  • Does the token and proof of concept have a legal roadmap?
  • Ask challenging project questions – Does the team ignore or respond to your inquiries?
  • Look at the exchange where the coin is listed – does it have a large trading volume?
  • Share it with your friends and community, and ask them if they think it’s a hoax.

2. Cloned Fishing Websites Scam

With a bit of caution, the con mentioned above artists can be avoided. Phishing attacks, on the other hand, are challenging to detect. It’s crucial.

These users share sites that look identical to the original site or a completely new site that collects your personal information and then uses it to hack into other accounts.

Accurate clones of legitimate projects, such as exchanges or ICO sites, are used to steal funds and personal information.

Always double-check the URL and save the URLs of the websites you frequent. Cloned sites will use similar letters in their URLs to make them appear identical to the actual URL at first glance, such as “m” instead of “n,” “0” instead of “o,” and so on.

How it works is as follows:

  • This website resembles Binance, but it has nothing to do with it.
  • Depending on the context of the conversation, the fraudster sends you a link to the site. For instance, he claims that if you have a problem with Binance, you should use this link to log in.
  • The cheater will suggest that the user try a new exchange.
  • You must enter your user registration or login information in both cases. These credentials are then used to access other user accounts with minimal security. The report of the user has been hacked.

How to avoid it:

On the surface, everything appears to be expected. No one is tricking you into sending cryptocurrency. Someone encourages you to participate in a new exchange or provide feedback on the website. You don’t see anything wrong, but you’re dumped in the end. It’s a little more complicated than that with this con.

To avoid being duped, follow these steps:

  • Don’t click on links that you don’t recognize.
  • Check the link in the address bar of every site you visit to ensure it is correct. Keep an eye out for the unique characters.

3. Fake Support Teams Scam

Another type of phishing campaign involves impersonating a project support team and requesting personal information, deposits, or passwords.

You try to get answers to your questions from the stock exchange’s telecommunication groups or administrators when you have a problem with them. These con artists are on the lookout for such people.

How it works:

  • The user encounters an issue with a cryptocurrency exchange such as Binance, Bitbns, Koinex, WazirX, Coindelta, and others.
  • Fraudsters imitate the administrator of the group telegram exchanger by using similar usernames, images, and display names or by using the exchanger’s logo.
  • Users mix them up with the exchanger and put their trust in them.
  • Users are asked to send BTC or ETH to “fix the problem” by fraudsters.
  • Users send the money in the hopes of finding a solution to the problem.
  • Scammers make off with this sum and are never seen again.

How to avoid it:

  • Binance, Kraken, Bitfinex, Kucoin, Huobi, Bibox, Coinbase, and Gemini are the best exchanges to use.
  • CoinMarketCap lists 204 exchanges at the time of writing, and there’s a good chance one of them is another BitKRX.
  • Keep track of the legitimacy of the apps you download to your phone or browser.

4. Fake Exchanges And Apps Scam

Shadow exchanges abound in the cryptocurrency world, appearing and disappearing seemingly overnight. You must be highly cautious when dealing with these exchanges because they may involve your coins or money. Alternatively, some of these exchanges charge outrageous commissions or make withdrawing money extremely difficult once you deposit money.

Some of these exchanges make it appealing for new traders to use their platform by charging no transaction fees or trading commissions. Instead, they make money by charging a fee to list any token (including fraudulent ICOs) on their platform, failing to provide adequate trading liquidity for traders to buy and sell tickets freely.

  • Some of these tokens are eventually frozen on these exchanges, leaving traders with their “bad coins” that they can’t sell.
  • These ICO tokens may also introduce security flaws in the exchange, jeopardizing the database’s overall security.

How to avoid it:

  • Confirmation of the regulatory authorities’ authenticity and the existence of a legal address for the company.
  • Look for unrealistic spikes in trading volumes, especially if the exchange is new to the market.  Look for exchange articles on the Internet.
  • Is the team working on the exchange anonymous or public about its members’ identities?
  • Verify that the exchange’s markers are secure by looking at them.

5. Cloud Mining Scams

Due to the higher cost of mining equipment and electricity for individuals, they provide scammers with yet another easy way to defraud.

MiningMax, a cloud mining service, is a well-known example. For two years, it offered people $3,200 in exchange for a daily return on investment and a $200 referral fee for each personally hired investor, making the scheme appealing and understandable. The website defrauded investors out of up to $250 million.

You’re probably confused about how mining works if you’re new to cryptography. Anyone with even a passing interest in cryptocurrency has most likely heard of mining. As a result, these con artists try to sell your mining plans as lucrative investment opportunities.

How does it work?

  • Scammers ask users if they are familiar with mining.
  • Scammers will claim that a mining opportunity will allow you to earn a lot of Bitcoin, regardless of what users say.
  • They will gain your trust by stating that you will be registered on the site and receive your wallet. Scammers will also make claims like “a large investment in cloud mining,” “coin flipping,” etc.
  • However, because these wallets are created by a company with access to personal passwords, the user transfers the funds, and the cheater vanishes.

How to Spot Scammers and Avoid Them:

Let’s begin by avoiding receiving unsolicited messages. Even if you respond to someone who sends you such messages, you should never send anyone any cryptographic correspondence. Never send it to a wallet over which you have no control.

6. Ponzi, Pyramid, And Multi-Level Scam

Ponzi schemes are investment frauds in which existing investors are paid anticipated returns from funds contributed by new investors.

Bitconnect was the most well-known cryptography Ponzi scheme. Surprisingly, it was able to stay active for a year until the most significant exit scam ever.

Bitconnect had a market cap of around $2 billion and a coin price of approximately $320 at its demise. It dropped to $6 in less than 24 hours, and the marginal market price was reduced to $40 million.

Bitconnect was a huge hit, and its marketing was meticulously planned, as is typical of successful pyramid schemes.

Finally, always think with your head, and if something appears too good to be true, it most likely is.

Multi-level marketing’s ancestors had good intentions. They used this marketing strategy to get their products and services in front of many people, resulting in increased sales and business growth.

However, after seeing its success, scammers used this marketing technique in their criminal activities.

How it works is as follows:

  • Rather than hiring affiliates to help sell their products and paying them commissions on successful sales, fraudulent platforms hire companions to sell false claims and lies to unsuspecting parties.
  • The majority of these people fall in love with lies, put their money into them, and voila! They’ve vanished. The con artists keep most of the money for themselves and only give a small portion to their accomplices (affiliates).
  • Such platforms are easy to spot; they target gullible people by promising a quick return on their investment. When they become victims, they are faced with the reality that they must either work to earn or wait indefinitely for their money.

How to avoid it:

  • Before making any investments, always look for platform property information. Consider the following questions: Is the CEO trustworthy? Was he ever a part of a previous sham platform? Is it possible that he isn’t who he says he is?
  • The majority of Ponzi schemes keep their owners’ identities hidden. Investors are kept in the dark about the facts. People frequently invest blindly, and no one is held accountable when things go wrong.
  • It is required to define the platform’s a property/background information. Ask queries like, “Who manages the platform?” and “Who runs the platform?” When was it launched, and where is it headquartered (its operating headquarters)?
  • Verify the platform’s legal validity. Are they adequately licensed to administer the financial platform by the appropriate authorities? Is it possible for you to sue them if something goes wrong?
  • Look through previous user feedback on forums and blogs. What are the opinions of prior investors on this platform?

7. Fake Pools And OTC Scams

You don’t have a go-between. Off-exchange transactions are distributed in the correct currencies. The transaction has a set cost. Fraudsters might deceive trusting users once more by offering unbelievable prices to buy or sell cryptocurrencies.

Fake pools are frequently set up using a telegraph or “Discord” group chats. These organizations provide allocations for prospective ICOs and urge you to submit the money, usually in Ethereum, to contribute to a pool that will subsequently get ICO tokens.

Although some of these organizations are legitimate and demand a high monthly fee, KYC, and a specific skill set to join, most of them are simply scams.

Furthermore, due to the anonymous nature of cryptography, there is no way to get a “refund” if you deposit money to a false pool.

How it works is as follows:

  • The scammer offers users a Bitcoin trading opportunity.
  • To entice customers, they usually charge a 5-10% increase on current pricing.
  • They then ask to send crypto in one of two ways: first, they send a false NEFT receipt to show the payment, or they send a fake NEFT receipt to show the payment and ask to send crypto beforehand.
  • These users erase their accounts and vanish after sending the cryptographic data.
  • These frauds come in a variety of forms. I once asked the conman to send me his ID to see if he was stable. He handed over his passport (read: fake).
  • He later emailed me his bank account information and his NEFT receipt as proof of payment. Because an NEFT transfer takes half an hour, it’s used as a ruse to get people interested in encryption. I didn’t send Bitcoin, and he eventually recognized I hadn’t fallen into his trap.

How to stay away from it:

Don’t send OTC messages on telegram or anywhere else if you don’t know who the individual is. There are various peer-to-peer exchanges, some of which do not require KYC, where you can trade. Don’t be greedy when someone offers a higher rate and go for over-the-counter transactions.

8. Pump And Dumps Scam

Pumps and dumps are groups of people who influence the price and volume, usually a lesser-known coin. The first pump the price in a short period by coordinating large-scale purchases and then dump it.

The issue is that these groups are divided into levels, with higher levels knowing which coin only swings to lower levels after they have purchased it.

These organizations use low market limits to control coin prices. It gives a digital token a “false agiotage.” It is accomplished by artificially inflating its value and trading volume before you can earn a profit.

Traders who act first profit, while those who are a bit late suffer a significant decline in prices in minutes.

They frequently collaborate in “Telegram” or “Slack” teams. Although it appears to be a rapid way to make money, regular traders are usually slower than those who unlawfully influence the market.

How to avoid it:

  • Do not join these organizations (even if they contact you on social networking sites).
  • Be wary of tokens with a quick and sharp increase in trading volume.

9. Fake endorsements from celebrities

Scams involving celebrity endorsements are on the rise. Companies use celebrity photos and affix their faces and names to particular products to boost sales. These advertisements are often deceptive, attempting to persuade you to purchase a product based on the celebrity who is promoting it.

You buy the thing in good faith because you enjoy its celebrity. Still, in reality, you’ve been duped into purchasing a non-working product or enrolling in a subscription program you didn’t mean to pay for.

How to stay away from it:

  • Keep an eye out for news websites.

Promotional articles and product sales are not published on news and media websites. So, if you notice a news site offering a celebrity-endorsed good, double-check the source. Check the link to be sure it’s the website you think it is, and don’t buy the thing until you’ve done more research on it.

  • Take note of the advertisement.

Examine the advertisement carefully to see if it is genuine. Is the thing being endorsed genuinely held by the celebrity? This is a significant warning sign. The photographs and videos used in actual celebrity advertising show the celebrity holding the object and addressing it by name. The product is generally put alongside the celebrity in phony celebrity adverts, indicating that the photo has been altered for the hoax.

10. Giveaway scams

Clever messaging from what appears to be a legitimate social media account can instill trust and generate a sense of urgency. In what is known as a giveaway scam, scammers offer to equal or multiply the cryptocurrency provided to them. This ostensibly “once-in-a-lifetime” opportunity may tempt people to send money rapidly to receive a quick payout.

How it works:

  • Depending on the chat topic, the fraudster gives you a link to the site. For instance, he claims that if you have difficulty with Binance, you should use this URL to log in. This website resembles Binance, but it has nothing to do with it.
  • The cheater will suggest that the user try a different exchange.
  • You must submit your user registration or login information in both circumstances. These credentials are then used to access other user accounts with low security. The account of the user has been hacked.

How to stay away from it:

On the surface, everything appears to be normal. No one is tricking you into sending cryptocurrency. Someone encourages you to participate in a new exchange or provide comments on the website. You don’t notice anything wrong, yet you’re dumped in the end. It’s a little more complicated than you can imagine.

To avoid being duped, follow these steps:

  • Don’t click on URLs that you don’t recognize.
  • Check the link in the address bar of every site you visit to ensure it is correct. Keep an eye out for the unique characters.

11. Defi Rug pulls scam.

Decentralized finance, often known as DeFi, intends to decentralize money by eliminating financial transaction gatekeepers. In the crypto environment, it has recently become a magnet for innovation. The creation of Devi platforms, on the other hand, has its own set of issues. Through such channels, bad actors have gotten their hands on investment monies. This activity, known as rug pulling, has grown in popularity as Defi protocols have become popular among crypto investors looking to increase returns by seeking down yield-bearing crypto assets. Defi rug pulls the most recent bitcoin fraud to hit the market.

They frequently collaborate in “Telegram” or “Slack” teams. Although it appears to be a rapid way to make money, regular traders are usually slower than those who unlawfully influence the market.

How to avoid it:

  • Do not participate in these groups (even if they approach you on social networking sites) (even if they contact you on social networking sites).
  • Be wary of tokens with a quick and sharp increase in trading volume.

12. Blackmail and extortion scams

Extortion fraudsters have a valuable scare tactic: They indicate in their emails that they know a password you’ve used for online accounts. They claim they’ve implanted malware on your computer that lets them monitor your keystrokes, see through your webcam, and amass proof that you browse adult websites. And they say they’ll share that information with all your email and social media contacts — perhaps with a video of you enjoying your viewing — unless you pay hush money, generally several hundred dollars in the form of Bitcoin.

Don’t panic. There’s a minimal chance the cyber-blackmailer has genuinely penetrated your machine. Extortion scammers send out threats indiscriminately, utilizing massive batches of email addresses and associated passwords that they likely purchased on the black market following significant corporate data breaches. They want to stumble across a few folks who don’t update their passwords often or have some secret they don’t want to know. There have been actual examples of hackers gaining access to people’s cameras, which gives the fraud a veneer of authenticity.

To make it even more terrifying, some scammers tinker with their email messages, putting in the “From” box with your genuine email address to create the appearance that they control your account.

This ruse is rampant. When the message does get through, it can be rewarding. Cybersecurity company Symantec says its software stopped roughly 289 million extortion emails in the first five months of 2019. The FBI’s Internet Crime Complaint Center (IC3) identified 43,101 occurrences of online extortion in 2019, with victims incurring losses of $107.5 million.

The pornography situation, nicknamed “sextortion,” accounts for a substantial share of email extortion complaints. According to the FBI, these have increased as a result of people spending more time at home and online during the coronavirus outbreak. Online extortionists may also claim to have caught you in a sexually compromising scenario, such as cheating on your spouse or even planting a bomb at your place of business.

What to do if you want to avoid it:

  • Search the web for a term or two from the threatening email to see if it’s a spam message that was sent to a large number of people.
  • Change your password for any website where you’ve heard there’s been a data breach.
  • When two-factor authentication is available, use it. With merely a stolen password, a hacker will be unable to gain access to your account. You need something other than your password to enter a website with two-factor authentication, such as a code sent to your phone by the site’s owner.
  • Maintain the integrity of your operating system, web browser, and antivirus software.
  • When you’re not using your computer’s webcam, cover the lens with a piece of opaque tape to keep a hacker from spying on you.
  • Make sure your social media accounts’ security settings are activated and set to maximum protection.

13. Investment or Business Opportunity Scams

The saying “if it appears too good to be true, it probably is” is one to remember for anyone getting into investing in general, but it’s especially true when it comes to cryptocurrencies. Countless profit-hungry investors flock to phony websites that promise guaranteed returns or varied settings. For even bigger guaranteed returns, investors must pay enormous quantities of money. While money flows readily in, these fake guarantees frequently result in financial disaster when customers try to withdraw their funds and are unable to do so.

Scammers posing as stockbrokers or portfolio managers contact, email, or message you on social media, offering financial or investment advice. They may even claim to be from a well-known investment firm or corporation, as scammers sometimes replicate well-known companies to appear genuine.

The con artist will say that what they are giving is low-risk and will give you quick and large returns, or they will try to persuade you to invest in foreign businesses.

The offer will appear genuine, and the fraudster may have professional-looking websites and resources to back up their claims. They’ll be persistent, and they may phone you again until you agree to invest.

The fraudster may claim that they do not require an Australian Financial Services license, that they have been approved by a legitimate government regulator, or that they are affiliated with a legitimate business.

Shared, mortgage, or real estate high-return schemes, options trading, or foreign currency trading are the most common investments suggested in these cold calls. The scammer is usually based in another country and lacks an Australian Financial Services Licence.

What to do if you want to avoid it:

  • Search the web for a term or two from the threatening email to see if it’s a spam message that was sent to a large number of people.
  • Change your password for any website where you’ve heard there’s been a data breach.
  • When two-factor authentication is available, use it. With merely a stolen password, a hacker will be unable to gain access to your account. You need something other than your password to enter a website with two-factor authentication, such as a code sent to your phone by the site’s owner.
  • Maintain the integrity of your operating system, web browser, and antivirus software.
  • When you’re not using your computer’s webcam, cover the lens with a piece of opaque tape to keep a hacker from spying on you.
  • Make sure your social media accounts’ security settings are activated and set to maximum protection.

14. Social Engineering Scams

Scammers utilize psychological manipulation and deception in social engineering tactics to take control of sensitive information associated with user accounts. Victims are led to believe they are engaging with a reputable entity, such as a government agency, a well-known company, tech support, a community member, a coworker, or a friend. Scammers will typically approach a potential victim from any aspect and spend as much time as necessary to gain their trust and have them provide essential information or send money to the scammer’s digital wallet. When one of these trusted relationships asks for cryptocurrency, it’s usually a sign of a scam.

The most meticulous cybercriminals may spend as much time as possible developing their persona. When they reach out — as a fellow alumnus, a school parent, or a sports fan, to mention a few examples — they may be able to predict a person’s reactions with a high degree of accuracy, making it simpler to behave responsibly and in ways that build trust.

How it works

Scams come in a wide range of sizes and shapes. During the holidays, requests for gifts or charitable contributions are common. Criminals may send malware-infected email links to get access to people’s devices, personal accounts, or data. Some may demand a ransom in exchange for the device or the data that has been stolen.

What to do if you want to avoid it:

  • Consider your options before you post. Consider whether it is actually necessary to provide information about your home and loved ones. To be hacked, you don’t have to mention a checking account or Social Security number in a social network post.
  • Take a look at your privacy settings. Make sure any online account where you disclose personal information does not allow unrestricted public access.
  • Keep a close eye on your finances. Keep an eye on your accounts for any strange activity and remove those that aren’t in use. Make sure to keep a check on the accounts of any dependents.
  • Any payment or personal information request should be double-checked before proceeding. Even if a request appears to come from someone you know, make contact with that person through a different route to ensure the request was not made by a fraudster.

15. Romance Scams

Scammers frequently utilize dating services to dupe unsuspecting victims into believing they are in a long-term relationship. When trust has been developed, the focus often shifts to lucrative cryptocurrency opportunities and the eventual transfer of funds or account authentication keys. Cryptocurrency accounted for almost 20% of the money reported missing in romance scams.

What is the mechanism behind it?

They’re quite far away.

One of the first red flags of a romance fraudster is their background. Fakers frequently pose as someone stationed abroad to give the impression that they are unable to meet in person.

  •  They’re working on an oil rig;
  • They’re in the military and have been deployed overseas;
  • They’re a doctor for an international organization;
  • They’re working on a building project outside of the US.
  • Because their narrative is so compelling, keep an eye out for any inconsistencies.

It appears like their resume is too wonderful to be true.

A decent dating profile would usually include photographs of the person in various settings, including one or two that show their complete body rather than just a section of their face. It’s also possible to attach links to the person’s Instagram or Facebook accounts.

A dating profile, on the other hand, may be false if the person does not submit any information. Perhaps their hobbies and interests are nearly identical to yours – the parallels are almost too unbelievable to be real.

The romance moves at a rapid pace.

  • Romance con artists aim to act rapidly before their victims recognize what they’re up to. As a result, they prefer to create your trust directly away.
  • They confess their affection for you unexpectedly rapidly.
  • They ask you to marry them.
  • They swear you will visit each other.
  • They beg to remove communications off of the dating site – you aren’t seeing other people, right?
  • Many online dating services feature safety protections, which you lose if you take your conversation outside of them to text messages or other chat options. Furthermore, the person will know your phone number, making it more difficult to cancel the connection.

In any case, it’s a good idea to listen carefully to your interactions and look out for the following red flags:

  • The person’s messages appear to be easily copied and pasted into any chat.
  • The dialogue is disjointed and incomprehensible.
  • Your grammar and spelling are terrible.
  • When requested to video chat, they come up with various excuses.

But they break promises to visit

Scammers in the romance industry like to remain anonymous. A promise to come to visit is one approach to keep you from questioning their identity. They may even demand that you cover the cost of plane tickets or other travel expenses. However, they’ll cancel at the last minute, citing a long list of why they can’t meet you.

They claim to need funds.

Be wary if your internet love interest demands money before you’ve even met them. A romance con artist may ask you to give money for:

  • Travel expenses, such as a plane ticket or Visa;
  • Medical expenses, such as surgery.
  • Debts incurred as a result of gambling.
  • Personal or family emergencies
  • They usually have a tearful story to go along with their plea.
  • Another money-laundering scheme to be aware of is: They may send you money! This could lead to you becoming involved in a “money mule” scheme. The fraudster asks you to deposit money into your bank account, distribute monies to others, or deliver parcels. These inquiries could, in reality, be related to money laundering.

They also want specific payment methods.

  • Be wary if your cyber sweetie asks you to pay them money via wire transfer.
  • a newly opened bank account in your name;
  • preloaded gift cards
  • These are methods for fast obtaining cash while remaining anonymous. Furthermore, the transactions are difficult to reverse. After you send a small amount of money, they may ask for more. If you reply “no,” they may become desperate and aggressive in their messaging.

How to Stay Away From Them

  • Pay attention to warning signs.
  • Take a look at how you’re doing on the internet.
  • Take things slowly when it comes to relationships.
  • Make a phone or video call as soon as possible.
  • Go snooping on your own.
  • Outsource their requests for assistance.
  • Get a second opinion from someone you trust.
  • Discontinue communication and file a police report.

Typical Red Flags

Promises of guaranteed returns

No financial investment can guarantee future profits because investments can go down and up. Any crypto deal that guarantees you will make money is a red flag.

  • You Have To Invite More Users

Doubt and suspicion: When requested to invite additional users, this is a clear clue that this is a Ponzi scam. However, keep in mind that affiliate programs are diverse and always voluntary.

  • Free money

Whether in cash or bitcoin, any investment opportunity promising free money is likely false.

  • A weak or non-existent whitepaper

Every cryptocurrency should have a whitepaper since this is one of the most crucial parts of an initial coin offering. The whitepaper should explain how the cryptocurrency has been built and how it will work. If the whitepaper doesn’t make sense – or worse, doesn’t exist – then tread carefully.

  • Unnamed team members

Be cautious if you can’t figure out who is running a cryptocurrency. With most investment businesses, it should be able to find out who the primary people behind them are. Usually, this includes easy-to-find biographies of the people who administer the investment with an active presence on social media.

  • Excessive marketing

All firms market themselves. But one way that crypto fraudsters recruit individuals is by investing in significant marketing – internet advertising, paid influencers, offline promotion, etc. This is aimed to reach as many people as possible in the quickest time feasible — to raise money fast. If you believe that the marketing for a crypto offering looks heavy-handed or makes grandiose claims without backing them up, pause and do further investigation.

  • They Ask For Your Private Passwords

Never reveal your passwords, secret keys, or security phrases. Any person, initiative, or ICO requesting your passwords, private keys, or security phrases is false.

  • Previous Scam

Fraud will always be a scam. If a project, startup, or individual has been accused of fraud in the past, be alert, as they may become fraudsters again.

  • Project Team

Do not believe the articles or the project site. If the information about the team is not public, there is a considerable risk that it could be a hoax. It’s vital to check that the team has LinkedIn accounts and maybe go beyond that and complete a full background check using Google and Twitter or Facebook.

How to protect yourself from cryptocurrency scams

Many crypto frauds are clever and convincing. Here are some things you can do to protect yourself:

  • Protect your wallet

To invest in bitcoin, you need a wallet containing private keys. Suppose a firm wants you to provide your keys to participate in an investment opportunity. In that case, it’s extremely likely to be a fraud. Keep your wallet keys confidential.

  • Keep an eye on your wallet app

The first time you transfer money, transmit only a small amount to confirm the integrity of a crypto wallet software. If you’re updating your wallet app and seeing strange behaviour, terminate the update, and delete the program.

Only invest on what you understand: If it’s not clear how a particular cryptocurrency works, then it’s advisable to pause and do the extra study before deciding whether to invest.

Take your time: Scammers typically employ high-pressure techniques to encourage you to invest your money immediately – for example, by promising bonuses or discounts if you participate straightaway. Take your time and carry out your investigation before investing any money.

  • Be aware of social media adverts

Crypto scammers typically utilize social media to promote fraudulent schemes. They may use unlawful photographs of celebrities or high-profile entrepreneurs to create a sense of credibility, or they may promise freebies or free cash. Maintain a healthy scepticism when you see crypto prospects touted on social media and do your diligence.

  • Ignore cold calls

If someone reaches you out of the blue to sell you a crypto investment opportunity. Never share personal information or transfer money to someone who contacts you in this way.

  • Only download programs from official platforms

 Although bogus apps sometimes end up in the Google Play Store or Apple App Store, it is safer to download apps from these platforms than elsewhere.

  • Do your research

The most popular cryptocurrencies are not scams. Look for an up-to-date and reliable false cryptocurrency list to check for scams. But if you haven’t heard of a certain cryptocurrency, research it — see if there is a whitepaper you can read, find out who controls it and how it operates, and look for credible reviews and testimonies.

Is it too good to be true: Companies that claim assured profits or make you rich overnight are likely to be scams. If anything looks too wonderful to be true, tread carefully.

Finally, like with any investment opportunity, never invest money you can’t afford to lose. Even if you’re not being scammed, bitcoin is volatile and speculative, so it’s crucial to recognize the risks.

What to do if you fall victim to a crypto scam

Falling victim to a cryptocurrency scam may be upsetting, and it’s crucial to act promptly if you have made a payment or provided personal information.

  • Contact your bank immediately if you have:
  • Made payment with a debit or credit card.
  • Made a payment via bank transfer.

Shared intimate data about yourself.

Crypto fraudsters typically sell the details they have obtained to other crooks. So, it’s vital to change your usernames and passwords across the board to prevent future damage. Suppose you are the victim of a social media crypto scam. In that case, you can report it to the relevant social media platform. Depending on where you reside, you can report scams to the proper body in your jurisdiction — for example, in the US, that would be the Federal Trade Commission. Other countries have their equivalents.

How To Evaluate The Legitimacy Of ICOs


  • Are there full names and persons associated with the project?
  • Do they have active LinkedIn or other social media profiles?
  • Is the white paper the original or a copy of another white book?
  • Are there verified partnerships with other companies?
  • Does the organization have a roadmap, a real product, or is it just an idea?
  • Are they a registered and merged company?
  • Read honest broker evaluations on the website That Sucks.


  • If the project is abandoned, it is not worth your time and money.
  • What do people say about this group on various social networks?
  • Does the team connect with the community, and what is their attitude?


  • Not everyone needs a blockchain.
  • Do you require a blockchain, or can the problem be solved with a standard database?
  • Does the technology behind this project solve the problem?
  • Is there another group that is working to solve the same problem?


  • Does the organization have a defined goal?
  • Has the team met the deadlines in the past and achieved the goals set out on the road map?
  • Did the team encounter any challenges during the development, and how did they deal with them?
  • Has the coin gone through the pump and dump before?
  • Have there been any changes in the team structure?


After all, despite the numerous frauds, schemes, and performers of various fraudulent actions in the cryptographic realm, the ideal strategy is a decent degree of skepticism and prudence. Despite the number of fraudulent projects, there are innumerable trustworthy and well-managed enterprises and organizations that make investments in cryptographic money at cost. So, there you are, now you’re smarter regarding scammers. If you have been deceived, there may not be any solution for returning your money, so be careful. A warning is better than a cure. As a general guideline, never transfer money or cryptocurrencies to anyone, and you will never be fooled.

1 Comment

  1. Egwu Mary

    nice write-up!!!
    thanks alot tony at least I am informed now.

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