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Cryptocurrency Scams: You Need To Look Out For - 2023

Dec 19, 22  |  Saba Hasan

The Information Technology industry is growing significantly. As per the report of various business companies, the total worth of the IT industry in 2022 is 9,258.51 billion dollars, and it will constantly increase.

But the problem is where Industrial growth and liberalization are increasing. The IT sector serves its services amazingly, whereas some greedy people tend to misuse their technical powers. We call them scammers or hackers commonly. 

The word scam is generally found or heard during various financial frauds. For instance, if someone steals another person's money, in that case, that person will be called a scammer. But it's not like that; in fact, a scam is a totally different thing. This blog will tell you about the reality and harsh outcomes of the world's biggest financial scams. 

Did you know that the world's top scam, where hackers easily steal people's hard-earned money, comes under cryptocurrency scams, and it's leading the list? 

Some people already believe that Cryptocurrency is a spammy thing or technology where no one has a right to track or regulate transactions, which couldn't be far from the truth. Let's dive in with the overview of Crypto scams, along with their major types and ways of identifying one.

What Is Crypto Scam?

The primary reason behind people falling for a crypto scam is their lack of knowledge. Hence, they need to gain fundamental knowledge regarding Cryptocurrency and blockchain in order to protect themselves from such scams. Millions of people wish to become billionaires overnight, which is quite strange and almost impossible. It's hard to survive in such circumstances where we see digital scams everywhere, and this lack of knowledge will destroy you and your future. Crypto fraud cases usually happen because of people's substandard decisions and lack of knowledge. As a result, scammers have the upper hand and use their shortfalls as an opportunity. Crypto frauds and scams come in various sizes, and among them, the most common is the Bitcoin bonus email. In this method, they send you an email newsletter containing a title like, you got a bitcoin bonus email offer. This type typically includes an enticing offer such as "Click on the link to avail this opportunity." 

So, when someone clicks on the link, their information is directly recorded and is shared with the hacker. Bitcoin investment scams also involve fake advertisements. In this method, hackers run fake PPC campaigns to execute hacks, targeting only those who block websites via VPN or any other proxy browser. These examples are just a start.

The list of types of crypto scams is very long. Continue reading as we discuss some common types of cryptocurrency scams. 

Types of Cryptocurrency Scams

There are various types of crypto scams; some are common, and most of us would have heard about them from someone or even on the Internet. Sometimes hackers take advantage by creating fake cryptocurrency list or trading platforms to fulfill their evil purposes, which is why you must carefully understand this section. Here are some world's most common types of Cryptocurrency scams:

Bitcoin Bonus scams

Bitcoin Investment scams

Ponzi schemes 

Exit scams

Crypto scam phishing

Rug Pull crypto trading scams

Bitcoin Bonus Scams

In this particular fraud, scammers use their extraordinary technical skills to hack someone's mobile phone, bank account, or trading account. They usually incorporate standard techniques of hacking. Firstly, they will gather all your online information from various mediums, such as your social channels. Moving forward, they create fake accounts and send friend requests. Now, they will send you misleading information leading to cryptocurrency scams or crypto trading scams. Please avoid it in all forms and never accept such requests. 

Bitcoin Investment Scams

In Bitcoin Investment scams, hackers claim themselves as investment managers and promise huge returns on crypto investment. Recently, bitcoin investment scam occurred in the northern Chinese region, where police arrested digital money laundering hackers involving more than 1.7 billion US dollars. This crypto gang executed the fraud by pyramid scheme (MLM) method by converting all bitcoins into stablecoins. Furthermore, the Chinese government took an immediate decision and banned all kinds of crypto trading operations in the country. However, China is the 4th largest crypto market in the world, and it's tough for the people of China, who have already lost almost 1.7 billion dollars.

Ponzi Schemes

A Ponzi scheme is another type of crypto scam where usually the parent company promises a high return valuation to secondary investors. These schemes are performed using pyramid techniques. In a nutshell, crypto trading scams involve fraud companies implementing pyramid schemes to manipulate investors. They also ensured that the risk factor in such projects stays deficient while the returns are high, and that's how they entice people to invest in such frauds.

Exit Schemes

An exit scheme is also a fraudulent crypto trading scam occurring in cryptocurrency exchanges, which abruptly shuts down all their operations and steals all the funds invested. The creator in Exit Schemes usually disappears with the money, leaving investors with no resources and funds. Exit schemes are a hot topic when it comes to cryptocurrency scam lists because the number of exchanges and investors is increasing daily. Additionally, it doesn't require much investment. 

Crypto Scam Phishing

In the cryptocurrency scam world, millions of hacking experts implement phishing techniques to steal people's money. Phishing is a common standard where scammers gather information for illegal purposes. Furthermore, hackers launch their attack as a bitcoin bonus email or any bitcoin bonus scam document where a fake malicious code is inserted. When the targeted person clicks on the email link, they are redirected to a malicious page that looks exactly like the real one. Here, they are instructed to share personal information like wallet address, account number, etc. All this sensitive information is directly shared with the hacker on his computer, and that's how crypto fraud cases happen in reality.

Rug Pull Crypto Trading Scams

In rug pull methods, scammers "pump up" a new project, non-fungible token (NFT), or coin to attract investors. The fraudsters vanish with the money after obtaining it. These bitcoin bonus scam assets' software forbids anyone from selling bitcoin after buying it, leaving investors with a worthless investment. To earn Cryptocurrency, investors had to play online games and purchase tokens. These are generally sold for extra earnings in the form of cryptocurrencies. Trading eventually ceases, and the funds vanish, leaving people with nothing. As a result, the token value decreases and ends at zero. 

Man In the Middle Cryptocurrency Scam

Scammers can access bitcoin users' private information through an unsecured wireless connection. This is exactly why people need to be careful when logging in from a public place. Any data exchanged over a public network, including passwords, bitcoin wallet keys, and account information, is susceptible to interception by scammers. A hacker can obtain this private information whenever a user is logged in by employing a man-in-the-middle attack strategy. Utilizing a virtual private network to block the middleman is the most effective defense against these assaults (VPN). All transmitted data is encrypted via the VPN, preventing hackers from accessing personal data and stealing Cryptocurrency.

The list shared above of types of crypto scams is where crypto fraud cases happen on a daily basis. Learning and reading properly is advisable before investing in any online investment opportunity.

Now, let's move to the deeper and more complex side of cryptocurrency scams:

Employment Opportunities and Dishonest workers

Scammers frequently act as recruiters to access crypto wallets. They pull off the trick by offering a desirable job while requesting cryptocurrencies in exchange for work-related training. There are many other scams involving the utilization of remote workers. For example, North Korean IT freelancers attempted to take advantage of remote job opportunities by sharing outstanding resumes and stating their locality in the United States. This North Korean fraud that targeted cryptocurrency companies was alerted by the US Department of the Treasury. 

These independent IT contractors look for cryptocurrency work and use access to currency exchangers. To raise funds or steal information, they sometimes even hack into the DPRK systems in the Democratic People's Republic of Korea. Additionally, these professionals perform sophisticated frauds through state-of-the-art algorithms and insider information to carry out cyberattacks.

Fake Cryptocurrency List

Scammers use a website cloning strategy to create a duplicate website resembling the original cryptocurrency exchange site while adding fake cryptocurrency list. It's hard to recognize which website is original; the only way is by checking the domain name. These fraudulent websites will even permit your initial withdrawal of a modest sum. These sites first appear to be completely real when you get your initial deposits. What's more, even a few investments will appear to be profitable. More than one million investors lose money by using fake cryptocurrency list exchanges. The primary strategy behind this dilemma is the bitcoin bonus email, allowing hackers to use it easily. 

To identify legit Cryptocurrency, you need some knowledge of the technical analysis process. Technical analysis is a process used by crypto experts to predict any coin movement or price fluctuation. This process will help you to analyze any specific crypto coin validation. 

Check out some of the best technical analysis platforms and fake cryptocurrency list for your future assistance:

  1. Metamasuk.io 
  2. Dapp.tokenpocket-app.me 
  3. Xn--metamask.com 
  4. Rneta-rnask.com 
  5. Xn--metamsk-.com 
  6. App-token.im 
  7. Imtokenhot.com 
  8. Api.imtoken1.app 
  9. Appapi.tokenpro.pro 
  10. Token-lon.pro 
  11. Facai.im 
  12. Btc.imtoker.cn 
  13. Max.aguagua.com 
  14. www.tp-imtoken.top 
  15. Dapp.tokenpocket-pro.orgdapp. 
  16. Token-pockets.pro  

What Is Bitcoin Mining Scam?

The digital currency mining process is one of the wealthiest opportunities for people willing to invest their money in digital assets. Bitcoin mining is not a scam, but some technical criminals use this opportunity to manipulate the natural process. Some legit websites offer ASIC miner technology used for bitcoin mining. 

On the other side, some illegitimate websites employ the same technique for fraudulent purposes. They attract users via social media platforms and send them some phishing webpages links. When the person tries to log in, all the details are directly sent to the person behind this scam.

Is Bitcoin Bonus A Scam? 

Surprisingly almost all crypto fraud cases happen because of the crypto bonus strategy. A phishing email is sent through a cryptocurrency website, informing or congratulating you on winning some free Bitcoin. Besides this, it also includes that you have been chosen to participate in a fantastic promotion and have gained access to free Cryptocurrencies. 

The email frequently prompts you to click a link and provide your personal information. The fraudster can access your computer and turn on a keylogger simply by clicking on the link. As a result, anything you type on your computer will be stored on their computer (personal details and passwords). This type of crypto scam is old, but nowadays, hackers are integrating new techniques for stealing confidential information. 

How to Spot A Bitcoin Scammer

It's hard and almost impossible to recover money or coins from scammers. Cryptocurrency payments are only refundable if law enforcement agencies dig deep in an attempt to recover and help their citizens. However, numerous institutional investors are constantly raising this point and working towards a setup to create strong legislation. Indeed, cyber experts and researchers are still working on adding more security to blockchain technology, allowing them to track hackers. Still, this technical fraud eventually happens because of people's foolishness, and in the end, people need to be more careful. 

Cloud Token Scam Review

The latest cloud token scam review made headlines when Chinese law enforcement agencies arrested 72 scammers who were part of the cloud token scam review community. What's more, in 2018, crypto influencers/reviewers launched a cloud token (CTO) as a coin management payment system to capitalize on general public funds. That's exactly why we have added this cloud token scam review to acknowledge affected people. 


What's a Crypto Scammer?

It's a type of Ponzi scheme integrated by a technical cyber scammer who takes advantage of personal information and exploits them. Because of fewer cyber investment opportunities, crypto scammers and fraudsters can easily attract people. 

Can I Recover Funds From A Crypto Scammer?

Cryptocurrency transactions are usually held via a decentralized transaction process, meaning no one can track the transaction details. So you can't recover your money if it is stolen by cryptocurrency scams.

Final Thoughts

In this blog post, we tried our best to guide you about technical crypto scams. Numerous people are affected by crypto scammers, where their money is completely lost. To avoid becoming a victim yourself, you need to be aware of the technical knowledge, and what better way than this blog to increase your understanding of cryptocurrency scams? Gaining an understanding of Blockchain technology, the right method of crypto investment, and current cryptocurrency frauds can help us stay protected. Not to forget, before investing your hard-earned money in digital assets, always check technical analysis and avoid the above fake cryptocurrency list. Top cryptocurrency scams were held from 2020 to 2021 because of the bearish market. But if you have the right knowledge, you can surely make your investment fruitful.

We at Distinguished work with top custom software development companies to provide completely safe and secure bespoke blockchain software. We are proud to serve the best-in-class service globally and help companies secure their networks from cryptocurrency scams. 

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