The Top 5 Biggest Crypto Scams: Lessons & Safety Tips

Scammers follow the money, and because cryptocurrency is a lucrative investment venture, you’ll find scams there, too. To avoid them, you have to know what these schemes are. Here is a glimpse at the top 5 biggest scams in the crypto space: 

1. Phishing Scams
2. Social Media Giveaway Scams 
3. Rug Pull Scams
4. Romance Scams 
5. Fake Crypto Exchanges

In this article, we’ll explore the deep ends of these scams and how you can avoid falling victim.

What Are the Five Biggest Crypto Scams in 2024?

1. Phishing Scams

Almost every industry is a victim of treacherous phishing emails. Unfortunately, crypto is not spared from these phishing attacks. 

A phishing scam is a harmless email where unsuspecting victims click on an embedded link. This link often leads to a page where personal details are collected. The scammer then uses the details to infiltrate the victim’s wallet and clear their funds. 

The 2020 Ledger hack is a famous example of a phishing scam. The perpetrators compromised the emails from the platform. They sent altered emails to users to take their wallet login details, which they later used to wipe their wallets clean. 

2. Social Media Giveaway Scams

In the crypto space, giveaways are standard as they help to foster a loyal community around a new project in its early stages, and these giveaways are often done on social media. Therefore, malicious individuals have now taken advantage of this to cheat people of their hard-earned funds, leaving them empty wallets after fake promises of giveaways.

The scammers impersonate legitimate social media accounts and lure investors with ridiculously good deals. When investors send assets to the sham, their deposits disappear with nothing in return. These perpetrators often make millions using this ploy.

3. Rug-Pull Scams 

Rug Pull scams are technically pump-and-dump schemes. The scams start like almost every crypto project. The scammers get celebrities to participate in the PR. An example of how celebrities play a role in these scams is the Racksterli Ponzi scheme. Several celebrities and public figures vouched for the scheme’s credibility. Not long after the ploy, many Nigerians pooled into the project and had their funds meet an irretrievable end. 

A recent rug-pull crypto scam was the Squid Coin, named after Squid Game. Not long after its release, the Squid token price peaked. Then, the scammers had the rug pulled from the traders’ feet, leading to a loss of $3.3 million to the scheme.

4. Romance Scams

Romance scams are a popular crypto scam that’s usually perpetrated online. The scammer uses various manipulation techniques to gain the trust of their lover. Afterwards, they start to ask for crypto assets. This sly tactic often leads to the eventual transfer of credentials and funds. Romance scams rank 1st among all money scams.

5. Fake exchanges

Fake crypto exchanges involve scammers pretending to have legit exchanges that offer several perks. By the time investors try out the exchange, their deposits are gone.

How to Safeguard Your Crypto Investments 

Regarding scams, prevention is always better than outscoring a cure. So, how do you spot fake offers from legit ones? Here are safety tips you need to know to safeguard your investment: 

1. Be Wary of Freebies: Offering free deals is one of the many ways scammers attack. To safeguard your investment, you have to approach these offers cautiously.  

2. Examine the Project Properly: Rug-pull scams are common in the crypto market. They often start like legitimate crypto projects. A way to tell the scam apart from others is by researching the project’s white paper and team members. 

Legit projects have thought-out roadmaps that investors can follow. They also indicate the use case of their project (genuine use cases that aim to provide crypto-related solutions.) Researching the team members and their qualifications is an excellent way to reinforce your project research. Probe them about the project and carefully peruse their answers for gaps. 

3. Keep It Private: Be wary of messages that ask for your personal information. No one needs your private key number for legitimate crypto transactions.

4. Disregard “unfreezing” messages: Beware of messages asking your personal details to unfreeze your account. 

5. Avoid Promotional DMs: No celebrity will DM you, offering a probable investment.  Don’t take financial advice from celebrities, and do your own research (DYOR). 

Frequently Asked Questions (FAQs) About The Top 5 Biggest Crypto Scams 

Can I Trace A Crypto Scammer? 

Not exactly. While there is Blockchain software that accesses some information about the scammer, it is seldom their personal details. 

Can I Get My Money Back From A Crypto Scam?

You can’t reverse a crypto transaction. The only way to return your investment is if the receiver returns it. However, you can contact lawful enforcement agencies, as it may be possible to legally recover part or all your funds.   

How Do I Know A Potential Crypto Scam? 

Watch out for offers that are too flashy and ask for personal details. When someone approaches you with a grand offer without a logical backing to support their claims, double down on your questions. For instance, ask questions like “How do you intend to double my deposit in 24 hours?” 

Are There P2P Crypto Scams? 

Yes, there are. But you can avoid P2P scams by opting for safer options like Breet. We are your best pick for safe and seamless crypto transactions. We provide an automatic experience with exceptional security systems in place, backed by encryption and firewall protection. 

What Are Pump and Dump Scams?

Pump and Dump scams work by falsely inflating a crypto asset through false positive statements and exaggeration. The perpetrators sell off their investments to make massive profits when the price gets sky-high.