CRYPTO SCAM TYPES
GUIDE TO CRYPTOCURRENCY SCAMS: PROTECT YOUR DIGITAL ASSETS INTRODUCTION
CRYPTO SCAM TYPES
The proliferation of cryptocurrency and Web3 has given rise to a myriad of innovative financial opportunities. However, this growth has also attracted a significant number of scammers aiming to exploit the unwary. Understanding the different types of scams that exist in the crypto ecosystem is crucial for anyone looking to invest or participate safely. This brief guide details common scams, providing examples and key terminology to arm you against potential threats.
DIVERSE CRYPTOCURRENCY SCAMS AND HOW TO RECOGNISE THEM
PHISHING
Scammers use fake communications to trick you into giving out your personal information or private keys. Always double-check URLs and never share sensitive information online.
Fake Wallets
These are apps or websites claiming to store your crypto securely, but instead, they steal your funds. Research and use only well-known and verified wallets.
Fake Apps
Fake apps mimic legitimate ones but are designed to steal your data or funds. Always download apps from official app stores and check reviews.
Twitter Account Hacks
Scammers gain control of high-profile Twitter accounts to promote scams, often fake giveaways that ask for a small deposit for a larger return. Verify all claims through official channels and if something sounds too good to be true, it probably is.
Fake Twitter Accounts
These accounts impersonate celebrities or crypto influencers to promote scams. Check for verification ticks and be wary of too-good-to-be-true offers.
Fake Telegram Channels
Scammers create channels pretending to be official crypto projects to phish information or promote fraudulent schemes. Join channels through official websites only.
Fake Tokens
Projects that create tokens with no real value or purpose, often riding the hype of legitimate projects. Research the project’s whitepaper and team before investing.
Fake Discord Servers
Similar to Telegram, these are set up to mimic official project servers for scams. Official project websites should link to genuine Discord servers.
Fake Websites
Websites that mimic legitimate crypto exchanges, wallets, or Initial Coin Offerings to steal your information. Always check the website’s URL carefully.
Phishing Emails
Emails pretending to be from legitimate sources asking for private keys or personal information. Never click on links from unsolicited emails.
Fake Airdrops
Offers of free tokens that require you to share your wallet’s private keys or send a small amount of crypto to receive more in return. Genuine airdrops never ask for private keys.
Fake Employees
Impersonators claiming to be from a real crypto project offering support or investment opportunities. Verify identities through official channels.
Fake NFTs
Selling counterfeit or stolen digital art and collectibles as genuine NFTs. Purchase NFTs from reputable platforms and verify the creator’s identity.
Fake Ads
Online ads leading to phishing sites or promoting fake crypto projects. Use ad-blockers and verify through official sites.
AI Deep Fakes
Videos or audio using AI to mimic real people promoting scams or false information. Cross-check information across multiple official sources.
Impersonation
Scammers pretending to be someone you trust, such as a crypto advisor or a celebrity endorsing a project. Always verify through direct, official communications.
These are just some of the methods scammers use to try and steal digital assets.
Key Terminology to Know
An extra layer of security used to ensure that people trying to gain access to an online account are who they say they are.
A digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
The process of converting information or data into a code, especially to prevent unauthorised access.
Contracts that are programmed to automatically execute, control, or document legally relevant events according to the terms of a contract or an agreement.
A secure method of storing cryptocurrency offline, away from the reach of hackers.
An online, connected wallet, more convenient for transactions but also more vulnerable to attacks.
A secure code known only to the owner of the cryptocurrency, used to access and send their funds.
Similar to an account number, it’s an address you share to receive funds.
Financial services, including lending and borrowing, that operate on a blockchain network, removing the need for traditional financial intermediaries.
A unique digital token existing on a blockchain, often used to certify ownership of digital assets such as art, collectibles, or real estate.
A self-executing contract with the terms of the agreement directly written into lines of code, facilitating, verifying, or enforcing the negotiation or performance of a contract.
The cryptocurrency world is rich with opportunities but also fraught with risks. By staying informed about the various scams and understanding the terminology used in the crypto space, you can better protect yourself and your investments. Always exercise caution, perform due diligence, and prioritise security in your digital financial dealings.