How Not to Become a Victim of Crypto Scammers?

Lately, you can increasingly see news about yet another crypto scam, including on our news Telegram channel.

Here are just a few examples:

• A resident of Limassol gave scammers from Facebook 30,000 euros as "investment" in cryptocurrency
• A resident of Nicosia transferred almost half a million euros to scammers for "cryptocurrency investment"
• In Cyprus, a "crypto investor" gave scammers over 33,000 euros
• A resident of Limassol gave crypto scammers 260,000 dollars
• An elderly resident of Limassol gave crypto scammers 95,000 euros
• A resident of Cyprus gave a crypto scammer more than 19,000 euros

Let's look at how to counteract this new threat: what to pay attention to, how to identify potential dangers, and what to do if you mistakenly transfer your money.

• Types of Cryptocurrency Scams
• How to Recognize Cryptocurrency Fraud
• How to Protect Yourself from Cryptocurrency Fraud
• Frequently Asked Questions

Types of Cryptocurrency Scams

Fake Websites

Scammers often create fake versions of official cryptocurrency wallets. These fake websites usually have domain names that are similar but slightly different from the legitimate sites they are trying to imitate. They look very similar to legitimate sites, making them difficult to distinguish.

Initially, such a site may allow you to withdraw a small amount of money. Since the investment seems successful, you might invest even more in the site. However, later, when you try to withdraw your funds, the site will shut down or deny your request.

Phishing Pages

Phishing scams with cryptocurrencies often target information related to wallets. Scammers aim to get private keys for crypto wallets, which are necessary to access the funds in the wallet. Any data you enter (such as a password or wallet recovery phrase) falls into the hands of scammers.

Such schemes often involve sending emails to lure recipients to specially created websites, asking them to enter private key information. Once they obtain this information, hackers steal the cryptocurrency in these wallets.

Fake Apps

Another common way to deceive cryptocurrency investors is through fake apps available for download on Google Play and Apple App Store. While these fake apps are quickly detected and removed, they manage to cause harm before that happens—thousands of people download these fake crypto apps.

Celebrity Endorsements

Crypto scammers even impersonate celebrities, business people, or authoritative figures to attract potential clients. Sometimes, this involves selling non-existent cryptocurrencies to novice investors. These scams can be very sophisticated and may include glossy websites and brochures featuring celebrities, often from the IT sector.

Capital Multiplication Scams

In these cases, scammers promise to multiply the cryptocurrency sent to them through their schemes. Messages, often from genuine social media accounts, emphasize urgency and supposedly "once-in-a-lifetime" opportunities for instant profit.

Offers to Buy New Cryptocurrency

Initial coin offerings (ICOs) are a way for new cryptocurrency companies to raise money from future users. Typically, clients are promised discounts on new coins in exchange for sending active cryptocurrencies like Ethereum, Bitcoin, or another popular currency, with promises that this new currency will increase in value significantly.

How to Recognize Cryptocurrency Fraud

Pay attention to some factors that will help you at least question the benefits of an offer.

Promises of Guaranteed Income

No financial investment can guarantee future profit because investments can both decrease and increase in value. Any cryptocurrency offer that promises you will definitely make money is a red flag. Especially if it's a lot and quickly.

Overly Aggressive Marketing

One way crypto scammers attract people is by investing heavily in marketing: internet advertising, paid popular bloggers, offline promotion, etc. Reaching as many people as possible in the shortest time means quickly raising money. If you feel pressured by such offers, take a break and conduct additional research.

Unknown Team Members

Most investment companies should allow you to find out who is behind them. This usually means easily searchable biographies of those managing the investments, as well as an active presence of the company and affiliated individuals on social media. If you cannot determine who is running the cryptocurrency, be cautious.

Technical Documentation

This concerns the purchase of new coins. Every cryptocurrency should have a whitepaper—a document describing how the cryptocurrency was developed and how it works. If the document is confusing and meaningless—or worse, it doesn't exist—be careful.

How to Protect Yourself from Cryptocurrency Fraud

Protect Your Wallet

To invest in cryptocurrency, you need a wallet with private keys. If a company asks you to share your keys to participate in an investment offer, it is likely a scam. Keep your wallet keys secret and never share them with anyone.

Monitor Your Wallet App

When making your first transfer, send only a small amount to verify the legitimacy of the crypto wallet app. If you notice suspicious behavior when updating the wallet app, stop the update and delete the app.

Invest Only in Understandable Products

If you're unsure how a particular cryptocurrency works, it's better to pause and conduct further research before deciding to invest.

Take Your Time

Scammers often use high-pressure tactics to get you to invest money quickly—such as promising bonuses or discounts if you participate immediately. Take your time and do your research before investing. Such behavior is a warning sign.

Social Media Advertising

Crypto scammers often use social media to promote their schemes: they may use images of celebrities or well-known business people to create a sense of legitimacy. Maintain a healthy skepticism when you see cryptocurrency opportunities advertised on social media.

Ignore Calls

If someone unexpectedly contacts you and offers to invest in cryptocurrency, it's likely a scam. Never share personal information or transfer money to someone who contacts you this way.

Download Apps Only from Official Platforms

Although fake apps may appear on Google Play or the App Store, downloading apps from these platforms is safer than others. Regularly check if the app has disappeared from the store; if it has, the security service has likely removed it, so you should remove it too.

Don't Risk Everything

As with any investment, never invest money you cannot afford to lose. Even if you are not being scammed, cryptocurrency is risky and volatile, so it's important to understand the risks and be prepared to lose your investment.

Frequently Asked Questions About Cryptocurrency Fraud

What to do if I transferred money to scammers?

If you made a payment using a bank card or bank transfer—immediately inform your bank; there's a chance the transaction will be frozen. Also, reporting it to law enforcement is advisable.

What to do if I see suspicious advertising on social media?

If you've been scammed by crypto fraud due to social media advertising or if it just seems suspicious, you can report it to the relevant social network.

What if I provided my personal data?

To prevent further damage, change all your usernames and passwords, and enable two-factor authentication wherever possible.

Protect yourself from crypto fraudsters by remaining vigilant. It is crucial to evaluate all risks and not take everything at face value, even if the website looks like the official website of a well-known person.