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The crypto world is full of scammers where each of them tries to come up with varieties scamming techniques with the sole purpose of targeting the newbies.

To keep yourself safe from cryptocurrency scams you have to gather adequate knowledge about all types of the scam-related crypto world.

Keep in mind that investing in the crypto world without having proper knowledge can lead you to lose your hard-earned money.

In this post, I am going to share a detailed discussion on all the common crypto-scam so that you don’t have to be a victim of that cryptocurrency scam.

Without further ado, let’s jump right into the details….

Common Cryptocurrency Scams – How These Works & How To Avoid Them

1. Fake ICOs Scammers

At this moment in time, the simplest form of crypto scam is called the Fake ICOs. Through this scamming technique, scammers can easily deceive new investors by showing fake sale tokens and stock exchange information.

How It Works

  • The new user becomes a part of the messenger group.
  • The user gets fake messages from a fake administrator.
  • Fake offers include lucrative private bonuses.
  • The scammers convince the interested personnel to transfer ETH to a ‘Special Address’.
  • Once the fund transfer is done, the scammers get disappeared.

How To Avoid

  • Make in-depth analysis.
  • Check the Whitepaper carefully.
  • Try to find a legal roadmap of the token info.
  • Discuss with friends before transferring the funds.

2. Cloned Fishing Websites

Scammers create cloned fishing websites to steal confidential information of the investors using this scamming method.

How It Works

  • Depending on your conversation with the scammers, they send out a link to you (usually the link of a fake site that looks like an original cryptocurrency site).
  • They will place lucrative offers on their fake website.
  • When you click on their link and sign up, your credentials go directly to the database of the scammers.

How To Avoid

  • Never click on any unknown or unrecognized links.
  • Before visiting a site, check the URL of the site at the address of your browser.
  • Always pay attention to the special characters in the URL link.

3. Fake Support Team

Another common form of phishing technique is to create a fake support team in order to get your personal information like deposit amounts and passwords.

How It Works

  • The user may face a problem while doing an exchange using Bitbns, Binance, Coindelta, and others.
  • The scammers use the same name and image as the administrator of the support team in order to create a fake identity.
  • The new users may get confused and trust the fraudster.
  • Scammers then may ask for ETH or BTC.
  • Users usually send the amount so that their problem gets a solution.
  • Scammers become disappeared after getting the fund.

How To Avoid

  • Do not exchange with unknown sources.
  • Whenever you face a problem, try to discuss it with your friends first.
  • Double-check the information of the administrator before sending any funds.
  • It would be best to make an in-depth analysis before transferring any fund.

4. Fake Exchanges & Apps

Always keep in mind that the crypto world is full of shadow exchanges that can disappear within a matter of time.

And, most of these exchanges are taken place by using varieties of fake apps.

How It Works

  • Scammers develop fake apps.
  • The fraudsters share fake documents which look like the original ones.
  • Fake exchange offerings deceive you with lucrative returns.
  • Once you make a transaction, the entire exchange history gets deleted.

How To Avoid

  • Verify the existence of the company address.
  • Verify the trading volumes whether there is any unrealistic spike.
  • Study and analyze.

5. Cloud Mining Scammers

Because of the higher price of the mining equipment, crypto scammers have come up with varied types of cloud mining scams.

How It Works

  • Scammers start the conversation to know the expertise of the victim about mining.
  • Scammers then show different types of mining opportunities.
  • They will try to gain your trust by showing fake documents.
  • They generate fake wallets using forgery documents.
  • When you transfer the fund, the cheater gets disappeared.

How To Avoid

  • Stop checking the unwanted messages.
  • Do not share any cryptographic data with unknown administrators.
  • Never send funds to a wallet that is not registered by your documents.

6. Ponzi, Pyramid, And Multi-Level

Ponzi scheme scam is the type of cryptocurrency scam that involves well-paid returns using the funds of the new investors.

How It Works

  • Scamming platforms usually hire affiliates or scammers with a view to selling fake claims.
  • The new investors are deceived by the scammers due to those fake promises of high returns.
  • When the investor makes a deposit, the fraudsters are nowhere to be found.

How To Avoid

  • Before you make any investment, make a thorough check of the platform.
  • Most of the Ponzi schemes usually don’t reveal the information of the owners.
  • Check and verify the legal status of those platforms.
  • Try to analyze the user reviews of the platform.

Before finished you can know about the Forex Brokers scams in my Blog section.

7. Fake Pools & OTC Scammers

Fake Pool is the type of cryptocurrency scam that is mainly arranged using a telegram or discord group.

How It Works

  • The scammers usually make the first approach by providing a profitable Bitcoin trading offer.
  • They make offerings like a 5 to 10 percent surcharge.
  • When you send the cryptographic data, the scammers delete all the information of the account details and then disappear.

How To Avoid

  • Never exchange OTC messages through discord or telegram group.
  • Do not get deceived by seeing the lucrative returns or offerings.

8. Pumps & Dumps

A dedicated group (better known as the group of pumps & dumps) usually make manipulation of the volume & price of a crypto coin.

How It Works

  • Initially, they try to pump the price in proportion to a large volume of the coin.
  • Then, they sell the coin by dumping it.
  • The higher authority of these groups usually decides when and how to pump the price.

How To Avoid

  • To be on the safest side, never engage in these types of groups even if they offer profitable returns.

Always make an in-depth analysis before buying or selling any coin.

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