Cryptocurrency scams have rocked the financial industry since the day bitcoin rose to prominence and unfortunately, it is estimated that over a billion dollars have been lost to such scams. At the same time, millions are lost every year to such scams. We hope that you will not fall for such scams and therefore present this article that will help you in one way or another to learn about the many crypto scams that exist.
These are the types of Cryptocurrency Scams –
It is extremely difficult to have a legitimate gift that would require someone to send you money. On social media, you have to be careful with these types of text messages. They may be derived from accounts that may look the same depending on the type an individual knows and really likes, but this will be part of the trick. As for the many responses thanking the mentioned accounts for their generosity – they are simply fake business accounts or bots deployed in giveaway scams.
Fake mobile apps
When the customer installs a malicious application, everything may seem to work as intended. On the other hand, these programs are specifically designed to steal your cryptocurrencies. Within the crypto arena, there were many cases where customers downloaded malicious apps impersonating major crypto companies.
In this situation, when the user is typically presented with an agreement to fund their wallet or receive payments, they are sending money to a fraudster’s address. Of course, when the money is transferred, there is no undo button.
Pyramid and Ponzi schemes
In a Ponzi scheme, you may notice an investment opportunity with some profits that is the first red flag. Generally, you will see this particular scheme disguised as a portfolio management service. The truth is, there is no magic formula here, the “returns” earned in the office are just other investors’ money.
In a new pyramid scheme, the people involved need a bit more work. Usually, at the top, the pyramid will be the coordinator. They will hire a specific number of men and women to work under these people at a specific level, and each man and woman will get their own number of people, and so on. As a result, you end up with a remarkable structure that grows exponentially and results disguised as a pyramid as new levels are made.