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Types of cryptocurrency scams

Posted on: August 2, 2018, by :
cryptocurrency scams
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Dan Muresan

Founder of Safe Crypto Trading & helping people to reach financial independence, investing in cryptocurrencies and blockchain technology. I worked at Fortune 500 international corporations from USA and Europe. Early adopter and investor in cryptocurrencies and stock markets, entrepreneur.

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The development of new blockchain projects has been growing lately, but also lots of cryptocurrency scams are scaring new investors. Many blockchain innovations have been created in 2017. And each month, new ICO projects are born. New blockchain developers become early crypto adopters. Between all of these projects and healthy ideas, there are also lots of scams and fake projects. This is the reason why some potential investors stay away from crypto investments.

I am going to describe  the biggest risks that a person could expose to in the crypto space. We have to be on the lookout for potential cryptocurrency scams.

Fake websites

There were a lot of fake websites created, such as exchanges and ICO cloned websites. These are almost identical to the real ones. Differences are hard to spot, so you have to make sure you don’t click on links that you don’t know. Sometimes a small dot in the website URL can make all the difference: www.biņance.com instead of www.binance.com. Can you spot the dot under the first ‘ņ’? Be aware of such cryptocurrency scams, because you can fall for such website very easy.

Free cryptocurrency giveaways

There are a lot of accounts, on Instagram, Facebook, Twitter, Telegram, that are promising free crypto. But first you have to send a small amount to a specific address. Some of these accounts are fake accounts of well-known people from the crypto industry.

The advice here is: don’t believe anyone who is promising free crypto, no one is giving you free money. Don’t get caught in their cryptocurrency scams.

ICOs created only for stealing money

More than 85% of the ICOs that were launched in 2017, were identified as shady and flagged as a scam tentative. These ICOs where presenting fake persons as supporters and advisors of the project. Some of these people  didn’t even existed or these people didn’t had anything to do with the project.

So the advice here is to search for all advisors and supporters of a project, see if they really exist. And check to see if they have a LinkedIn profile, actual experience, real interest and support in the project.

Malware in Crypto Mining

If you are trying to see mining options with your computer, you probably already installed some software for mining on your hardware. Some of them are malicious, so this software is looking and trying to steal your private keys. And also, other  information you have on your computer. Other types of malware are mining using your hardware, but without you getting anything from that. You probably don’t even know that happens. If your computer is using a lot of power, working at full speed, even if you are not doing something special, then this might be your case. Check out your CPU usage and see if it looks suspicious, if you think you installed such software.

My advice here is to be extremely careful when installing new software on your computer. Make sure it’s safe and you know what you’re doing.

Misleading advertising

Different ads, with well-known brands or logos were lining to scam sites that were trying to steal you private keys for example. Again, don’t click o thing you are not sure where they take you. Save in your bookmarks the links you are using.

Pumping and dumping coins

Different private groups are organizing tactical price movements, manipulating the price. When the price is pumped and lots of innocent people buy the coins, seeing the hype, the coin is rapidly sold by few who hold large amounts and the price is decreasing rapidly. Sometimes there are different levels in such groups, so the higher levels are inviting new members to such groups, telling them they will pump and dump together. But the higher levels are selling without telling to the rest of the group and the lower levels are getting scammed.

Phishing emails

Huge databases of emails are hacked every year and tons of spam emails are sent to everyone on a regular basis. Same happens in the crypto space, where phishing emails are sent in order to steal your data and send you to different links.

Also known as phishing, fake emails can redire

Website DNS hackings

DNS hackings happen when the DNS records of a website are modified, so the original URL links to a different page. Always make sure you are on the correct website, check and see if the SSL certificate is original and valid.

As a conclusion, if someone asks for your private key, well… You should never share it. If the project team is not validated or is fake, again, it’s a scam signal. If someone promises huge gains, but first you have to send a little something, it’s a scam. Cryptocurrency scams are not going to stop, so you have to learn to stay safe and keep your assets secured.

Remember, if it sounds too good to be true… it probably is.

What security measures are you using to keep your assets safe? Leave you answers in the comments below.

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