Types of Crypto Scams

Scammers are always thinking of ways to steal your crypto.

A definite sign of a scam is if someone says that you have to pay by cryptocurrency.

Think about it. Why would a credible person or business ONLY accept cryptocurrencies and refuse to accept U.S. dollars (or other fiat currency) whether through debit or credit card payment, PayPal, or wire transfer? 

Never feel pressured to pay with crypto. (Or even pay at all.)

Only scammers would demand crypto because unlike the other options where you can dispute the transaction later and get your money back, once you send crypto, there’s no way to reverse the transaction.

The scammer receives your crypto and disappears. 

We want to help protect you from scammers. Remember these important clues so that you can identify scams and keep your crypto safe:

How to Spot a Cryptocurrency Scam

How do you spot a scam?

If you know how to spot a crypto scam, you can prevent a crypto scam.

Here are some warning signs or red flags to look out for.

 A pitch that claims the investment involves no risk.

Don’t believe such promises as they indicate a scam. Even if there’s a celebrity endorsement or testimonials, be very skeptical since they are probably fake.

 A “guarantee” that you’ll make money,

Any crypto offering that promises guaranteed returns y is a red flag. No financial investment can guarantee positive future returns because investments can go down as well as up.

 An offer of “free money”.

Whether in cash or cryptocurrency, any offer promising free money is likely to be fake. If you’re offered free money in exchange for sharing personal information, that’s definitely a scam.

 Big claims without little or zero details.

If someone is pitching you an “opportunity” with vague, or even worse, no details, that’s probably a scam. If you ask questions to get more details, and your questions aren’t answered, that’s probably a scam.

 Poorly written or sloppy content.

Watch for grammatical errors in messages, social media profiles, and websites.  Scammers often make spelling, grammar, and punctuation mistakes.

 A sense of urgency

Scammers may try to create a sense of urgency to persuade you to do what they’re asking. Be wary any time someone tries to convince you that you must act now.

 Random messages from a friend(s).

A friend contacts you out of the blue, claiming he or she is caught up in an emergency and needs immediate financial help, but only through cryptocurrency.

How to Detect a Shady Crypto Website

If you’re not sure whether a specific crypto website is a scam, use this list to help you:

• Did you first hear about it on social media (Reddit, TikTok, Instagram, Facebook, YouTube, etc.) or chat/community apps (Discord, Telegram)? These types of channels are popular ways for scammers to find new victims.
• Does the website connect securely over https (not http)? If the website address starts with “http” instead of “https” then the data you send to the website is not secure.
• Does the website’s address have any spelling errors or typos? If so, the website could be a fake.
• Does the content written on the site contain typos, poor grammar, or confusing sentence structuring? If so, you should proceed with caution.
• Does the website use too many stock images or look likes it’s been created from a default template?
• Does the content focus on what will drive the crypto’s price higher instead of discussing technical details?
• Does the website guarantee high returns? For example, does it claim you’ll be able to triple your money in a week? If so, it’s probably a scam.
• Is there an “About Us” page? Does it provide any details about where the company is incorporated and located? Does reveal the real names of the people operating the company? Are the photos of the people real or stock images? If there’s little or no information about the company, be wary.
• Does the website claim any celebrity or influence endorsements? These are usually fake and used to convince people to sign up without doing any homework.

This list isn’t foolproof.

Even if the website can pass all questions, it’s possible the website is still a scam. 

But the probability that it is has been lowered.

If there’s anything on the website that makes you suspicious or sounds too good to be true, the safest thing to do is don’t click on anything or submit any information and just LEAVE.