Top 3 crypto scams

The price of cryptocurrencies suffers declines, but digital assets are no less popular. And this fuels the greed of cybercriminals who multiply scams and scams. The main targets of malicious actors: those who aspire to get rich quickly with virtual currency. They are easy prey to convince them. There are several forms of scams in the crypto world, including the Ponzi scheme, the pump and dump and the rug pull. These are the main fraud techniques used by scammers in the cryptosphere. Understand how these gold campaigns work and already have a first layer of protection.

The Ponzi scheme, the biggest crypto scam

A system of Ponzi is a scam in which an operator pays quick returns on investments to investors. The gains are none other than the capital from new investors that is redistributed. These are not legitimate investment profits. Ponzi scheme operators attract new investors with abnormally high short-term rates of return.

The fraudster makes a profit either by charging a fee on the “ investments or simply by running away with investors’ funds. Ponzi schemes usually collapse when there is not enough new capital to pay the ever-increasing number of investors.

The pump and dump

Like the Ponzi scheme, the pump and dump is a classic scam technique that cybercriminals are now using for crypto. In this scheme, well-crafted marketing leads to the artificial inflation of a worthless asset with a low capitalization.

Misleading statements among others and various publications on the networks make it possible to convince as many investors as possible that this is an opportunity not to be missed. This is when investors buy assets. The scammer makes a profit.

The carpet sweater

the carpet pull occurs when the developers/founders of a project fail to deliver on their promises after receiving funds. Typically, founders flee after receiving an investment. This scam can happen with cryptocurrencies and projects NFT.

In this system, scammers can sell all their shares or drain liquidity before disappearing. Some clues may indicate that it is a scam, including:

• the anonymity of the project developer
• the absence of a white paper
• blockage of cash
• abnormally high rewards
• a dodgy website.

Other crypto scams to know

Beyond these three fraudulent systems, there are other forms of crypto scams to be aware of such as airdropping tokens. Basically, the airdrop system is not a scam. This is a marketing strategy that helps crypto startups get exposure. The idea is to spread awareness of the cryptocurrency project and entice more people to trade the token when it is listed on an exchange. Nevertheless, cybercriminals have misused this technique to gain access to wallets victims and their assets.

To protect themselves from either of these scams, cryptocurrency experts recommend that investors do extensive research on fixing an asset, project, etc. To protect wallets, enabling two-factor authentication seems vital. Finally, it is advisable to invest only in known and reputable cryptos.

To conclude

Since cryptocurrency is a digital asset, investors are exposed to different cyber threats and many forms of scams. Moreover the number of scams is increasing on the web. If zero risk does not exist, there is always a way to protect yourself from scams. Never be tempted by abnormally high profit promises is one of the first (and most important) rules to observe in cryptocurrency. And then there are the checks. It is always necessary to take the time to ensure the legitimacy of the offers. In any case, only one watchword: caution!

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