Top Cryptos

Cryptocurrency Scams List 2024

If there’s money to be had, scammers will use all means to take it from you and cryptocurrencies aren’t spared; this is why, in this article, we will provide you with a cryptocurrency scams list.

In fact, they’re a primary target for scammers who maximise on the nascent technology and the public’s lack of know-how with cryptocurrencies to position themselves as leaders or experts in the space and earn trust.

Cryptocurrencies have become a popular means of payment and investment, and as a result, scammers are taking advantage of inexperienced and unsuspecting crypto users to steal their hard-earned cash.

Let’s explore the most common cryptocurrency scams and discover some expert-proven tips on how to sidestep falling victim to them.

You can protect your cryptocurrency investments by understanding these scams and taking the required precautions. Let’s find out more. Also, punters might be interested in our article discussing is cryptocurrency gambling legal.

FAQ
⭐ How Crypto scams work?

Crypto scams often entice victims with promises of high returns or exclusive opportunities, but once the victim invests or sends cryptocurrency, the scammer disappears, leaving the victim with losses. Scammers may also use phishing websites or impersonate legitimate projects to steal private keys or login credentials, gaining unauthorized access to wallets and funds.

⭐ How to avoid Crypto scams?

To avoid crypto scams, thoroughly research any cryptocurrency or investment opportunity and only deal with reputable exchanges and projects. Be extremely cautious of unsolicited offers and promises of guaranteed returns, and always double-check wallet addresses and URLs to ensure they are legitimate.

⭐ How to avoid Rug Pull scams in Crypto?

To avoid rug pulls in cryptocurrency, conduct thorough due diligence on the project and its developers, looking for transparent information and a solid track record. Additionally, be cautious of projects with anonymous teams, and consider using reputable auditing services to verify the security of smart contracts before investing.

⭐ Where to report Crypto scams?

To report crypto scams, you can typically contact your country's financial regulatory authority or law enforcement agency, providing them with all relevant details and evidence of the Crypto fraud. Additionally, you can report the scam to the cryptocurrency exchange or platform where it occurred, as they may have their reporting mechanisms and can take action to protect other users.

⭐ What fraudulent activities to include in the list of Crypto scams?

Crypto scams list include: Ponzi schemes, fake ICOs (Initial Coin Offerings), phishing websites, pump and dump schemes, and fraudulent investment platforms.

Table of content

Fake Crypto Exchanges and Crypto Wallets

Fake crypto exchanges and wallets occur in various types. Phishing is the first one. This scam type takes place when you get an unsolicited email that poses as if it is from your crypto exchange service provider. 

The email contains a link that transports you to a platform that looks almost the same as the wallet or exchange you’re familiar with but is actually a scam site.

The scammers have all the information they require to access your account and steal money as long as you use your crypto wallet or account details on this unofficial platform.

Here is a list of fake Crypto exchanges:

Exchange name Type of Scam
FTX Bankrupt crypto exchange
BitKRX Korean fake exchange
Komid Korean fake exchange
Coinbit Scam project
Quantum Ai Financial scam using Elon Musk name
Global Bdswiss Fraud broker
Bitbo Vip Fake platform
Bitcorebtx Fake platform that steals deposits
Bitemu Scam crypto exchange
Amgcrypto Mining scam
Btp Coin Scam with slow injection
BybitcoinEx Scam crypto exchange
Coin-royal Fake, scam and ponzi
Coinrule-web3 Unreliable platform
Coinsplanets Fake exchange
Core Generic Capital Fake Forex scam
Cryptogurus Trading platform scam
Dotll Fake platform
Esme Ex Fake platform
Etoroexca Scam Crypto trading platform
Farexcrypto Scam Crypto trading platform
Gemini UK Phishing scam
GMGroup.pro Fictious Business
Grandcapitalcg Crypto And Forex Trading Scam platform
ISA Investment Crypto And Forex Trading Scam platform
Tss Kcn Coin Telegram channels offering unrealistic profit
LNO Platform Fake crypto investment group
Londonbit Fraudulent organization that pretends to be an online brokerage.
Markets1 Withdrawal problems
Monafoli Fraudulent trading firm
Nobleamm Crypto dApp scam
PolarBtc Fake platform
Sellfy Software Scam Crypto Work Platform
Trade Speck Scam broker
Tradingexpo Trading scam; this broker is not authorized to provide trading services
USDTmining Fake Crypto Mining Pool
Ts Zpm Coin Fake Crypto trading platform

Just like phishing scams, you need to keep an eye out for fake cryptocurrency exchanges and wallets as they walk and talk like legitimate operators.

However, they’re merely a front to separate you from your hard-earned money. Many attract crypto investors and users with promotions and rewards that seem too good to be true.

On the other hand, others pressure crypto users into opening accounts and making deposits, promising bonuses to individuals who deposit huge amounts of money.

Once they have your funds, they start charging ridiculously high fees, making it difficult to withdraw funds. And as time moves, they steal your deposits altogether.

Another category that scammers have turned its focus on is creating sophisticated fake applications, which, once downloaded and installed on a user's mobile device, can allow scammers to access sensitive account information.

These applications find their way into official, legitimate mobile app stores such as Google Play. It benefits to research before you can download any app to your smartphone or tablet.

You might be interested in our article on MiCA Crypto Regulation.

Risky Cryptocurrency Exchanges

Crypto users and investors use specialised exchange platforms to convert their assets from traditional or fiat currencies such as dollars and pounds to cryptocurrencies like Ethereum and Bitcoin. These platforms also help convert one crypto to another, such as Dogecoin to Bitcoin and from cryptocurrencies to fiat currency. 

Many crypto exchange platforms are centralised firms that match digital asset sellers and buyers. Generally, they take fees or charge commissions for their service.

Most of them have online bank-like operations. They take customer deposits, offer loans to undisclosed third parties and earn profits from the difference in interest.

While crypto exchange platforms present themselves as an easy and safe way to trade your digital assets, using them, in most cases, comes with numerous risks, especially when you sign up with risky exchanges. 

fake-crypto-exchanges

These are exchanges that don’t have their customers’ interests in mind. They take advantage of unfamiliar and unsuspecting crypto users to steal their money. Most risky crypto exchanges are incorporated or located in third-world countries where regulations aren’t strict.

When crypto users suspect fraudulent activities, the appropriate authorities find it challenging to investigate the exchanges.

Also, these exchanges aren’t registered as depository institutions, money transmitters or securities brokers. They don’t tell you what they do with your digital assets and have previously interrupted or frozen customer withdrawals for no reason.

You cannot easily find these exchange platforms’ wallets on the blockchain, and they have a minimal presence online.

Risky crypto exchanges are operated by bad actors, or those under financial constraint could easily refuse to return your digital assets, making life difficult for you. You risk losing your hard-earned cash if they close their doors or collapse.

Even if the exchange is legitimate but starts acting as a risky one, you would most likely be the unsecured creditor and last to recover anything.

How Scammers Can Drain Your Crypto Wallet

Scammers can use multiple techniques to drain your crypto wallet. Some attacks depend on social engineering – deploying tricks to get cryptocurrency users to reveal their seed phrases and passwords or sniffing around for sensitive personal information. 

Other techniques simply require knowing a crypto user’s wallet address. Many crypto attacks are social engineering. Crypto users are being lured to a certain platform, and they are requested to connect their wallets. Once they connect, transactions pop up, and their funds are gone.

Social Media Crypto Giveaway Scams

Many scams in the cryptocurrency industry originate on social media. They’re common with Instagram and Twitter. Almost half the victims who report losing their digital assets to scams say that it all starts with a message, post or ad on a social media platform.

The most common scam is social media crypto giveaways. Scammers hide behind fake celebrity accounts, which promote the giveaways to lure crypto users in. When they click on the giveaways, they’re transported to fraudulent platforms asking for verification to get the crypto.

In most cases, the verification process includes making a deposit to prove the account is genuine. Victims can lose their deposits or, worse yet, follow malicious links and have their sensitive information and crypto stolen.

cryptocurrency-scams-list

Another common social media scam is the blue-checked account. Since the acquisition of Twitter, users can no longer glance at a blue check after a name. That means they cannot be sure it is a verified account since any Twitter Blue subscriber only needs to make a minimum payment of €8 to get the mark.

Before you can be a victim, always check the account to be sure it’s verified. Look at other posts, their number of followers, and how long they’ve been active. Any brand new account with a handful of followers that seems just to be shilling cryptocurrency projects is unlikely to be legitimate.

YouTube is also common with crypto scams. Scammers set up fake livestreams to steal crypto from viewers. Scammers create legitimate-looking YouTube livestreams, in most cases, using stolen content to enhance their authority. They offer links to seemingly tempting content, including giveaways. 

These links, in most cases, are malicious phishing attempts or simply direct users to send their cryptocurrency for the “expert” to invest.

To be safe, you need to check the YouTube channel’s history, including videos posted and when it started, to avoid scams. Stay away from any new channel with just a few videos.

Rug Pull Scams

DeFi and NFTs are especially susceptible to rug pull scams. As a type of exit scam, a rug pull takes advantage of the fact that DeFi eliminates the intermediaries involved in transactions with the ease of creating a brand-new token.

Scammers can easily create a cryptocurrency token and then get it listed on a decentralised exchange platform without having to go through any type of code audit or background check. 

Over 110,000 scam tokens have been created, stealing billions of pounds from unskilled and unsuspecting crypto users. In most cases, freshly listed cryptocurrencies soar in price, and enthusiastic investors may use filters such as “top gainers” or “recently added” to filter for new and hot coins without researching the projects.

After discovering the prices have been picked, the founders disappear with the investor’s funds, leaving holders with nothing.

In the non-fungible tokens space, scammers create whole collections that knock off or copy a popular collection to attract susceptible purchasers. Scammers use fake plays on legitimate collections to defraud purchasers by promising goodies before disappearing with huge amounts of money.

How to Protect Your Cryptocurrency

It’s advisable to know how you can identify scams in order to safeguard your cryptocurrency. Some common red flags are:

⚫ Promises for huge gains or double the investments

⚫ Contractual obligations

⚫ Only accepting crypto as payment

⚫ Manipulation tactics like blackmail or extortion

⚫ Promises of free funds

⚫ Fake celebrity endorsements or influencers that seem out of place

How to Avoid Crypto Scams and Protect Your Crypto

Let's look at some expert-proven ways to avoid scams:

Keep your wallet secure: Store your crypto in a self-hosted wallet, and never share private keys with anyone.

Too good to be true offers: Crypto scammers, in most cases, make false promises about investment earnings that are unrealistic. There is no free money, so, don’t take advantage of any get-rich-quick rip-offs. They're always scams; avoid them.

Be cautious of social media hypes: Crypto scammers often take advantage of social media to popularise their latest scams and present them as investment opportunities. Be worried about any advertisements that use images of high-profile people or celebrities in an effort to make their investments seem legitimate.  

Urgent investment opportunities: Always do your due diligence and take time to research all options available to you before you can accept an investment opportunity. Only make informed decisions, and you'll be able to sidestep crypto scams.

If you’ve fallen for a crypto scam and shared sensitive information, taking immediate action is advisable. The first thing you need to do is to contact your banking institution immediately, especially if you’ve shared any sensitive information or used your bank card.

They may retarget you or sell your information. That’s why you need to change your security details and passwords.

Aleksandras Rusinovas

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Aleksas was a professional poker player who played in many European Poker Tour tournaments throughout his 15-year career. He has achieved great success in online poker, as well as reaching the final table and cashing 20 times at the prestigious World Series Of Poker event. Aleksas has always been interested in sports betting. He has a strong i ..
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