For crypto investors, the year of 2021 was a huge success. Bitcoin and Ether (Ethereum) increased by 59.8 percent and 399.2 percent, respectively, but smaller cryptocurrencies such as SOL (Solana) experienced more than 11,000 percent returns! On the other hand, Crypto scammers enjoyed a record-breaking year, pocketing $14 billion. In 2021, damages from crypto-related crime surged by 79 percent, and bitcoin theft rose by 516 percent compared to the previous year!
To avoid falling victim to a scam, whether you’ve already invested in crypto or are considering it, you need to be aware of the most common strategies used by scammers. Keep reading to find out how to prevent becoming a victim of cryptocurrency scammers again.
Top cryptocurrency scams
Below are the most common crypto scams that happen quite often with newbies:
- Squid Game token
When you convert the year’s most popular streaming television show into a cryptocurrency, what do you get? One of the year’s most highly reported scams. Media outlets foolishly fawned over the Squid Game token, a completely unapproved alternative cryptocurrency based on the Netflix smash series Squid Game. In a few weeks, the value of a Squid Game token increased from a few dollars to roughly $3,000. CNBC, Forbes, Business Insider, and many other media sources reported Squid Game token, obviously captivated by its rapid increase in value.
However, there were issues from the beginning. In addition to the fact that its developers had no rights to use the Squid Game moniker for their coin, investors in the Squid Game token immediately complained that they could not sell their purchases.
- Fake crypto websites
There’s no denying that scammers are clever. According to specific reports, many of them can produce almost identical clones of authentic crypto websites. Here’s an illustration of what I mean. Fake cryptocurrency exchanges allow you to deposit money, buy bitcoin, and may even allow you to withdraw your money. However, scammers will spring the trap after you and others begin to believe in the site. Afterward, they’ll take all the money users have invested in the site.
- Crypto phishing scams
Crypto phishing scams are a standard weapon of scam artists. To steal bitcoin from unsuspecting victims, criminals are always coming up with new and inventive crypto phishing schemes.
Email and text messages are the most prevalent methods of communication used to spread crypto phishing scams to unwitting victims. Each message will have a link or a button that takes you to a scammer-controlled website, but the content of the messages will vary. Scammers want to access your cryptocurrency, whether it’s on an exchange or in a wallet, by tricking you into providing them with personal information.
Best ways to keep yourself safe
- Don’t invest in cryptocurrencies that have just been released. Do your homework and stick to established and reputable companies.
- You should only buy cryptocurrencies from reputable businesses.
- Sending or entering personal or crypto-related information in any messages.
- Don’t be fooled by crypto giveaways that appear on social media. It’s safe to assume that anything that seems too good to be true most likely is.