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Top Crypto Scams & How to Avoid Them

Want to know more about crypto scams? Let's debunk crypto scam schemes and identify top companies scamming users and how to avoid them.

By Emanuel WilsonPublished about a year ago 5 min read
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Cryptocurrency is gaining more popularity every day.

However, it is also attracting the attention of fraudsters who are looking for ways to scam people out of their hard-earned money.

In this article, we will take a look at the top three crypto scams and how to avoid them.

1. FTX

FTX is a cryptocurrency derivatives exchange. Scammers have taken advantage of its popularity to create a fake version of the website to steal user information. The fake website looks exactly like the real one, but the URL is slightly different.

So once users enter their login details, the scammers will have access to their accounts.

To avoid falling for this scam, it is important to double-check the URL before entering any sensitive information. Ensure that you are on the official website by verifying the URL and domain name.

2. Save the Kids

Save the Kids is a charity-oriented cryptocurrency that was launched to help children in need.

However, the project turned out to be a scam, with the founders pulling out after the initial coin offering (ICO) and running away with investors' funds.

To avoid falling for this kind of scam, always do thorough research before investing in any cryptocurrency. Look for information about the founders, their track record, and the project's legitimacy.

3. Privateum's PRI token

Privateum's PRI token is a crypto token that has raised concerns among experts, with many labeling it as a scam.

Above all, this token is now new, if you have a look at its performance in the Coinmarketcap.

Privateum promises high returns on investment and claims to use cutting-edge blockchain technology. However, the company has not provided any evidence to back up these claims.

To avoid falling for this scam, it is important to look out for red flags such as unrealistic promises, lack of transparency, and absence of a clear use case.

How to Avoid Crypto Scams?

Now that we have looked at some of the top crypto scams, let us explore ways to avoid them.

When it comes to cryptocurrency, the decentralized nature of the industry means that it's much easier for scammers to operate and take advantage of unsuspecting investors.

However, there are several steps you can take to protect yourself and avoid falling victim to these scams.

N1. Fake websites (or websites with numerous issues)

One of the most common crypto scams is the fake website scam. Scammers will create websites that look identical to the website of a legitimate crypto exchange or wallet and trick users into giving away their personal information or cryptocurrency.

How to identify spammy websites

To avoid falling for this type of scam, it's important to be vigilant and always double-checks the URL of the website you're visiting. Look for small discrepancies in the URL or spelling mistakes that may indicate that it's a fake website.

Don't forget about the broken links (see an example from Privateum):

If you browse the website and see numerous broken links, this means that the website owners do not care about the website users at all!

Would you like to deal with them after this? Worth thinking about even thrice!

Additionally, make sure to only use reputable exchanges and wallets and do your research before entrusting your cryptocurrency to any platform. Check the functionality.

If you see issues, stay away from them!

N2. Phishing scams

Phishing scams are another common tactic used by crypto scammers. They will send emails or direct messages that appear to be from a legitimate exchange or wallet, asking the user to enter their login credentials or other sensitive information.

How to avoid phishing scams

To avoid falling for a phishing scam, always be suspicious of unsolicited emails or direct messages, especially if they are asking for personal information or login credentials.

Make sure to double-check the sender's email address or handle and never click on links in unsolicited messages.

N3. Pump-and-dump schemes

Pump and dump schemes are a type of scam where scammers artificially inflate the price of a particular cryptocurrency through manipulative trading tactics, only to sell off their holdings once the price has reached a certain level.

How to avoid pump-and-dump schemes

To avoid falling for a pump-and-dump scheme, it's important to always do your own research and not rely solely on the advice of others. Be wary of any investment opportunity that promises huge returns in a short amount of time and be sure to diversify your portfolio.

N4. Apps having numerous issues (especially with functionality)

Another common crypto scam involves fake mobile apps that purport to be legitimate crypto wallets or exchanges. These apps may have numerous issues or bugs that could put your cryptocurrency at risk.

How to identify mobile usability excellence

To avoid falling for this type of scam, it's important to only download apps from trusted sources, such as the official app store for your device.

Additionally, read reviews and do your research to ensure that the app you're downloading is legitimate.

N5. Fake celebrity endorsements

Scammers will often use fake celebrity endorsements to promote their scams and convince people to invest in them. This can be particularly effective, as people often trust the opinions of famous individuals.

How to avoid fake celebrity endorsements

To avoid falling for this type of scam, it's important to be skeptical of any investment opportunity that claims to have celebrity backing. Do your research and verify the legitimacy of the endorsement before investing any money.

N6. Giveaway scams

Finally, giveaway scams involve scammers posing as legitimate companies or individuals and offering cryptocurrency giveaways to anyone who sends them a certain amount of cryptocurrency.

How to avoid giveaway scams

To avoid falling for this type of scam, it's important to always be wary of offers that seem too good to be true.

So never send cryptocurrency to anyone claiming to offer a giveaway, and always do your research to ensure that the offer is legitimate.

Conclusion

The cryptocurrency industry is a prime target for scammers, but by taking the time to educate yourself and remain vigilant, you can protect yourself from falling victim to these scams.

Always be skeptical, do your research, and never invest more than you can afford to lose.

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About the Creator

Emanuel Wilson

Johanna Tuffin has years of work experience covering content about cryptocurrencies, NFTs, and technology. He loves applying and trying various technologies, loves pets, and traveling.

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