CRYPTO SCAMS
Phishing scams involve fraudulent attempts to obtain sensitive information, such as login credentials or private keys, by impersonating legitimate entities through emails, websites, or messages. Scammers trick victims into disclosing their cryptocurrency-related details, leading to unauthorized access to their funds.
Ponzi schemes promise high returns on investment to early participants using funds from new investors. The scheme collapses when there aren't enough new investors to sustain the payouts, leaving the majority of participants with losses. Ponzi schemes in the crypto space often operate under the guise of promising extraordinary returns through cryptocurrency investments.
Scammers create fake cryptocurrency exchanges or wallets that resemble legitimate platforms to deceive users into depositing their funds. Once the funds are sent, they disappear, resulting in the loss of the deposited cryptocurrencies.
Initial Coin Offering (ICO)
ICO scams involve fraudulent initial coin offerings where scammers present fake or non-existent projects, enticing investors to purchase tokens. After collecting funds, the scammers vanish without delivering on their promises, leaving investors with worthless tokens.
In pump-and-dump schemes, scammers artificially inflate the price of a low-value cryptocurrency by spreading misleading information or false hype. Once the price reaches a peak, the scammers sell their holdings, causing the price to plummet and resulting in significant losses for unsuspecting investors.
Malware targeting cryptocurrency users can compromise their wallets or computers, allowing scammers to steal private keys or gain unauthorized access to funds. These attacks often come in the form of malicious software, fake wallet applications, or infected websites.
Scammers create fake social media profiles impersonating well-known figures, cryptocurrency projects, or exchanges. They use these profiles to trick users into sending funds or sharing sensitive information, taking advantage of the trust people place in reputable entities.
GOLDEN RULE
If something seems too good to be true, it probably is. Meaning: If something seems too good to be true, it probably is too good to be true.
