In 2024, as the cryptocurrency market develops, so too are the strategies used by con artists to take advantage of gullible investors. Ten typical cryptocurrency scams are listed below, along with advice on how to avoid them.
1. Phishing scams
Description: In order to obtain your login credentials, scammers fabricate websites or send emails that seem like authentic cryptocurrency wallets or exchanges.
Prevention: Preventive measures include always verifying the website’s URL twice and staying away from links in unsolicited emails. Apply two-factor authentication (2FA) to offer an extra degree of protection.
2. Illegitimate Initial Coin Offerings (ICOs)
Description: Fraudsters create fictitious initial coin offerings (ICOs) with the false promise of large profits on investments in a newly created cryptocurrency that does not exist.
Prevention: Do extensive research on the ICO. Check for reviews and comments from reliable sources, read the whitepaper, and confirm the project team.
3. Illicit Investment Plans
Description: Schemes that use the money from new investors to compensate early investors, promising large returns with no risk.
Prevention: Any investment that offers assured profits should be viewed with suspicion. Do your research and steer clear of investment plans that primarily depend on attracting new participants.
4. Pump and Dump Schemes
Description: Through fraudulent or misleading claims, scammers artificially increase the price of cryptocurrencies, only to sell off their holdings once the price reaches a high point, precipitating a fall.
Prevention: Steep price increases in cryptocurrencies that have no discernible cause should be avoided. Do your own homework before investing and stay away from hype.
5) Malware
Description: Hackers may be able to access your cryptocurrency wallet and take your private keys if malware infects your device.
Prevention: Keep your system updated, use reliable antivirus software, and refrain from downloading files or software from unreliable sources.
6. Fraudulent Exchanges
Description: To steal your money or personal data, scammers set up phony bitcoin exchanges that seem authentic.
Prevention: Use user evaluations and feedback to confirm the repute of the exchange. Make sure you only use reputable and established vendors.
7. Switching SIM cards
Description: By deceiving your cell provider, scammers may obtain your phone number, which gives them access to your cryptocurrency accounts and enables them to get around 2FA.
Prevention: Consider using a specialized 2FA app rather than SMS-based 2FA and choose a carrier that provides extra security measures.
8. Social engineering
Description: Psychological manipulation is a tactic used by con artists to get you to divulge personal information or your secret keys.
Prevention: Remain wary of unsolicited correspondence and refrain from disclosing private information. Verify IDs in a number of ways.
9. DeFi Rug Pulls
Description: Developers launch a fresh DeFi project, draw funding, and then vanish with the money, leaving tokens that have no value for investors.
Prevention: Examine the project’s personnel, community input, and code audits. Steer clear of initiatives with unidentified or anonymous developers.
10. Fake Giveaways
Description: In order to validate your wallet address, scammers ask for a little quantity of bitcoin in return for free cryptocurrency.
Prevention: Keep in mind that you are not required to submit any money in advance for valid giveaways. Be wary of offers that seem too good to be true at all times.
In 2024, you may safeguard yourself against becoming a victim of these prevalent cryptocurrency scams by remaining knowledgeable and alert. Always utilize safe procedures, do extensive research, and follow your gut if anything doesn’t feel right.
