Understanding Different Types of Scams In The Crypto World 

Table of Contents

The cryptocurrency world might have a higher potential for profits, but there are crypto scams that aren’t so new to the industry. These scams have made people lose their hard-earned money, which is why it’s important to understand different types of scams in the crypto world to make sure you are safe. Especially, as El Salvador’s move to embrace Bitcoin is influencing the world. So, let’s check out the information!


Investment Scams

Whenever you receive calls about the “once in the lifetime” investment option, it’s likely to be a scam. This is because these companies often call themselves the next big thing and that you can make exponential profits within a few years. 

They are likely to sell their products hard and a variety of sales pitches and will simply run away with your money. In addition to this, some investment managers might call you and say that they will use your money for an investment and will send profits to your bank accounts, but when it’s time to pay, they will ask for the fee. 

The second type of investment scam is a pyramid scheme with which the scammers will ask you to sign up and ask your friends and family to sign up and earn a commission. 

In addition, they will say that bigger investments will lead to more profits, but it will all result in an empty bank account. The third one is the new token or coin launch, which shows that it will meet the critical needs of the market, and as soon as you invest, they will simply vanish with your money. 

For this reason, whenever you are investing in cryptocurrency, make sure to check out the official website and look at the content. If the content is loaded with typos and grammatical errors, it’s a scam. 


Phishing Scams 

When we talk about the traditional forms of phishing scams, the hackers usually go for banking and email login credentials. On the other hand, the crypto-related phishing scams will try gaining access to the crypto wallets and are usually known as technical support scams. 

This is because, in the majority of cases, the person behind the scam will appear as tech support for getting the information. In addition, the representatives from the fraudulent companies will contact you and offer free crypto management and better profits if you provide them with the login information.

In addition to this, they might also ask for remote access to your devices to gain access to your wallet address. Having said that, you must not provide any sensitive information to the people, irrespective of how loyal they sound. 

In addition, always accept calls from the contact number that’s listed on the official website of the crypto providers and coins. 


Giveaway Scams 

If you have been following some major social media influencers and influencers on social media, you might have seen them talking about cryptocurrency in their posts and stories. 

However, scammers are likely to organize fake giveaways to get money from everyone. Even more, many scammers will use different fake profiles to add comments and make the posts sound lethal. So, if something sounds too good to be true, you need to stay as far as possible. 

In the majority of cases, the scam posts will include screenshots designed to paint a real or authentic picture of the giveaway.

So, whenever you see some crypto giveaway posts on social media, you need to stay away from such posts. Keep in mind that real companies won’t ask you to share personal information or login credentials. 


Extortion Scams 

In the majority of cases, the scammers will get in contact to claim that they have incriminating and embarrassing information about your personal life and also threaten to make the information public if you don’t send the payments in the form of cryptocurrency. 

In fact, they might even show some data obtained through data breaching’s, such as old passwords or a picture. Keep in mind that it is criminal extortion, and you need to be mindful about giving in.


The Bottom Line

To summarize, there is a variety of crypto scams in the industry, and all it needs is a bit of research for you to stay safe from the fear of losing money. So, have you ever been a victim of these scams?