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What to Know about Cryptocurrency Scams?

What is cryptocurrency?

Cryptocurrency is a digital currency that does not rely on state or national banks’ rules and regulations and transactions. It is a peer-to-peer connected system where anyone can send money anywhere and also can receive it anywhere in the world. It is a digital currency which only based on digital online entries for transactions, not physical money. Once you received or send cryptocurrency, the transaction has been recorded as digital entries online in crypto wallets. Whenever customers want they can transact their cryptocurrency into their bank account and get exchange it.

Cryptocurrency is highly encrypted with a verification code for security purposes. It means advanced coding is involved in storing and transacting data from wallets to public ledgers. The goal of encryption is to make cryptocurrency secure and easier for a transaction. If you are more interested to know the legalities of cryptocurrency or law assignment help you can visit online platforms that hold vast information on that topic.

The first and most famous cryptocurrency is Bitcoin which was founded in 2009 and still is the most valuable and safe cryptocurrency. The current bitcoin price is $16800, which is fluctuated with time. There are more cryptocurrencies available Ethereum, Tether, BNB, Binance, XRP, and Dogecoin.

Cryptocurrency Scams:

Like other financial scams, crypto scams have also happened all around the world but the only difference is scammers are after your digital currency rather than cash or physical money.

Crypto scammers use different tactics, as not all investors are fully aware of how crypto works or they are not technically advanced to understand the process of cryptocurrency, so scammers take the advantages of innocence of investors and sell fake assets with fake claims, or disguise the actual value of currency or try to steal their cryptocurrency.

The goal is always to manipulate victims into divulging personal data or transferring valuable digital assets to the perpetrator’s account. Below I will discuss the different kinds of scams that could happen to you while dealing with cryptocurrency.

Phishing scam:

It is a very old and happening technological fraudulent, where scammers try to steal the information of cryptocurrency holders, such as your crypto key, bank account details and pin code, etc. these scammers approach customers through various channels such as email, social media, or website invitation to impersonate themselves as government, bank or exchange currency holder and ask you to share your account details and crypto key, etc. to access your account.

In phishing, scammers share impersonate a reputed company and share a link to add your details and those navigated links are purely based on fraud to scam you.

Investment scam:

In recent years, investment scam has been noticed in bitcoin currency where scammers call investors and represent themselves as investment managers and asked them to invest in a fake bitcoin investment scheme. Scammers promise their investors to make profits in the future if they invest in such a scheme.

Scammers might ask for an upfront fee or ask about your valuable credentials like account details, crypto key, or pin code to access your account. They claim that they are transferring funds or depositing digital currency into your account but in reality, they are just looking out for your personal information to access your accounts.

Fake Crypto Exchanges:

Exchanges for digital currencies provide a crucial venue for buying and selling digital assets. However, many of these exchanges are still unregulated and prone to fraud. To entice potential investors and defraud them of their money, scammers have turned to fabricating fake cryptocurrency exchanges and manipulating trade volumes on ostensibly credible exchanges. These exchangers could bully consumers, refuse cryptocurrency withdrawals, impose steep fees, or even disappear with your money. Only using trustworthy exchanges is advised by specialists to protect against these frauds. Before creating an account, you should get familiar with the telltale characteristics of fake websites. To avoid such scams you should stick to your valid, authentic, and reputable exchanges wallets with previous user history. (Bartoletti, M., Lande, S., Loddo, A., Pompianu, L. and Serusi, S., 2021)

Social media cryptocurrency scams:

On various platforms of social media where scammers impersonate themselves as an influencer or celebrities and offer users bitcoin giveaways. Scammers use fake accounts of popular celebrities to make it believable for users that the actual celebrity is announcing giveaways or gifts to their fans and audience but on the other hand, when somebody clicks on those provided links of gifts and giveaways they are directed toward the fraud website where scammers ask for some verification code to receive bitcoin. The verification provides the legitimacy of the account holder that in actuality a real account holder is doing a transaction or someone else is taking advantage of their personal information and using stolen data.

Students all around the world also connect through freelancing website seeking university assignment help from each other even on these platforms many scammers asks students to pay through their cryptocurrency account and share their personal information, this has also become another way to do scams with the students.

Fake job offers:

These days as technology has taken over the world scammers have more room to do fraud. Many scammers impersonate themselves as a recruiter and offer fake employment and job offers through which they will ask you to share your personal information for your salary transactions, but the only goal they have is to gain the access to your personal information and steal your assets. They offer you a salary in cryptocurrency and will ask you about your security credentials.

Scams involving the use of remote workers exist as well. These independent IT contractors look for work involving virtual currency and make use of access to currency exchangers. To raise funds or steal information for the account holders, they then hack into the systems.

How to avoid cryptocurrency scams?

  • Must see the authentication of the website and links before adding your personal information.
  • Trust only authentic and reputable currency exchange, which has a long customer history.
  • Do not open or click different hyperlinks.
  • Do not integrate your bank account and crypto account, keep them separate.
  • If you see any unusual activity on your account freeze or hold all your transactions.


  • PES (2021) $190m Gone Forever? A nightmare for cryptocurrency investors, Professional Essay Service –. Available at: (Accessed: December 17, 2022).
  • Bartoletti, M., Lande, S., Loddo, A., Pompianu, L. and Serusi, S., 2021. Cryptocurrency scams: analysis and perspectives. IEEE Access9, pp.148353-148373.

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