From Social Media Giveaways To Job Opportunities, 10 Crypto Scams To Watch Out For

Oct 24, 2023

By: Deep Das Barman

The latest scams involve rug pulls, romance scams and phishing

Besides the convenience, the boom of digital currency has brought with it a number of scams and frauds. Cryptocurrency became mainstream in the past couple of years. The number of people falling prey to scammers has also gone up significantly. The FTC has esti...

1. Rug pull scams

Rug pull scams are executed by investment scammers who pump up a new project, nonfungible token (NFT), or coin to gather funding. Once the scammers get the money, they disappear leaving investors with an asset that has been coded in a way to prevent any sale. ...

2. Romance scams

Romance scams have existed for decades and they successfully adapted to the world of cryptocurrency as well. In this scam, fraudsters pretend to become the investor's love interest online through impersonation and an intricate web of lies. They often spen...

3. Phishing scams

Phishing scams are also one of the good-old scams that have been around for some time. In this, scammers send emails with malicious links to a fake website of a platform or a token exchange that appears to be authentic. These websites then ask for personal det...

4. Social media cryptocurrency giveaway scams

Since Bitcoin blew up, several accounts and platforms have held giveaway contests where users can win the cryptocurrency. This gave rise to fraudulent posts on social media often from fake celebrity accounts promising Bitcoin giveaways. To participate, users n...

5. Blackmail and extortion scams

According to the FTC, in this scam, anonymous people claim to have private or personal information, including photos or videos, to lure them into their trap. They typically threaten to make the information public, if they don’t pay up or do what they ask the u...

6. Job listing scams

In this scam, fraudsters create fake job listings or send unsolicited job offers to lure victims. Mostly the jobs are in the field of crypto itself including things like crypto mining and crypto investments. Regardless of their nature, all of these jobs need t...

7. Investment scams

In investment schemes, scammers reach out to mostly new investors pretending to be seasoned "investment managers." They claim to have made millions investing in cryptocurrency and promise to take their victims as clients and help them make money. The...

8. Impersonation scams

In impersonation scams, the crypto thieves often pretend to be celebrities or from the government or law enforcement agencies to gain some credibility. Some scammers even claim to be from large companies like Amazon or Microsoft to convince the victims. They t...

9. Pump and dump schemes

In the pump-and-dump scam, fraudsters create a group of people to get together and invest in a particular token or coin. They entice others into investing as well usually by posting on social media to build up hype. The scammers then work to drive up the price...

10. Fake cryptocurrency exchanges

In this scam, the fraudsters lure victims onto a new platform with promises of a great cryptocurrency exchange and even rewards of additional bitcoin. However, these scammers only have a fake exchange platform where the victims have to make deposits to get the...