{"id":2233,"date":"2022-09-27T12:54:19","date_gmt":"2022-09-27T19:54:19","guid":{"rendered":"https:\/\/www.ssls.com\/blog\/?p=2233"},"modified":"2023-09-27T14:16:10","modified_gmt":"2023-09-27T21:16:10","slug":"5-common-crypto-scams-and-how-to-avoid-them","status":"publish","type":"post","link":"https:\/\/www.ssls.com\/blog\/5-common-crypto-scams-and-how-to-avoid-them\/","title":{"rendered":"5 common crypto scams and how to avoid them"},"content":{"rendered":"\n
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There\u2019s a great deal of excitement surrounding the world of digital assets. With its advertised benefits of decentralized currencies and presenting an alternative to traditional financial channels, it\u2019s not hard to see why. Resultantly, a plethora of people are eager to take their first step on that alluring fintech ladder. <\/p>\n\n\n\n\n\n\n\n

Unfortunately, it\u2019s precisely this eagerness that crypto scammers have increasingly been exploiting over the past few years. Combined with the fact that many cryptocurrency exchanges are still finding their feet regarding user security<\/a> and weeding out the scammers (as we\u2019ve previously covered<\/a> on the SSLs.com blog), it can be difficult to parse what\u2019s a legitimate opportunity and what\u2019s a scam. <\/p>\n\n\n\n

This blog is here to help. Before investing your life savings into the alleged next big thing, you should watch out for:<\/p>\n\n\n\n

1. Fake apps and websites<\/p>\n\n\n\n

Fake websites and apps are a common means for cybercriminals to exploit victims. Sometimes they might be for fraudulent or fake exchanges, while others impersonate real cryptocurrency exchanges. A fake app or website may manipulate users in a few ways, for example, phishing schemes<\/a> that trick users into sharing their wallet information or bank account details.
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2. Pump and dump schemes<\/p>\n\n\n\n

A longtime means of economic fraud in the stock market, pump and dump schemes are increasing in the crypto world. Pump and dump schemes are a way to artificially inflate the price of a coin or token. This can be done through hype and spreading fake information on social media and messaging apps, with scammers encouraging traders to stock up on said coins, thus increasing the price. Once the price has risen to a satisfactory level, the scammers sell their own assets for the higher price, causing the coin or token\u2019s value to crash significantly in the aftermath. 
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3. Romance scams<\/p>\n\n\n\n

Romance scams use social engineering tactics<\/a> to steal money or cryptocurrency from a victim. Very often, the scammer reaches out to a victim on a dating app or social media site. Once the scammer gains the victim\u2019s trust, they\u2019ll either ask them to send a certain amount of cryptocurrency or tell them about an excellent trade investment that should earn them a lot of money. Of course, the investment opportunity is typically a way to steal money or something like a pump-and-dump scheme.
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4. Social media scams<\/p>\n\n\n\n

As the name suggests, these are posts on a social media site advertising something to do with cryptocurrency. This can encompass anything from fake celebrity endorsements, friends who have been hacked, or fake giveaways. These posts will likely lead to dodgy websites or apps that are out to steal your money. <\/p>\n\n\n\n

5. Blackmail scams<\/p>\n\n\n\n

These involve the scammer reaching out to victims, informing them that they have incriminating information about them and that they\u2019ll release it publicly unless the victim sends them a certain amount of cryptocurrency.<\/p>\n\n\n\n

How to spot a scam<\/h2>\n\n\n\n

You should already be assessing everything you read online with a critical eye, especially anything to do with cryptocurrency. Sometimes, it can be pretty obvious. Other times, scammers do an effective job at making fact and fiction indistinguishable. Here are some key warning signs that should help you spot a scam right away:
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