Cryptocurrency scams have rocked the financial industry since the day bitcoin gained prominence and sadly, it is estimated that more than a billion dollars have been lost in such scams. At the same time, millions are lost each year to these types of scams. We hope that you are not a victim of these types of scams and therefore we present you this very article that will help you in one way or another to discover many crypto scams that exist.
These are the types of cryptocurrency scams:
Gift scams
It is incredibly unlikely that someone will have a legitimate gift that requires you to send your own money first. On social media, you need to be wary of these types of texting varieties. They can be derived from accounts that possibly look identical in order to the types a person knows and really likes, but this will be part of the trick. As for the many responses thanking the mentioned accounts for their particular generosity, they are just fake company accounts or implemented bots included in the giveaway fraud.
Fake mobile apps
Once the customer installs a malicious app, everything may appear to be working as intended. On the other hand, these programs are specifically made to steal your cryptocurrencies. Inside the encryption room, there were many cases where customers downloaded malicious applications whose developers have pretended to be a major encryption company.
In such a scenario, when the user is presented with a deal to normally fund the wallet or to receive payments, they are actually sending cash to an address owned by the scammer. Of course, when the cash is transferred, there are no undo buttons.
Pyramid schemes and Ponzi
In a Ponzi scheme, you might notice an investment opportunity with certain returns, which is the first red flag. Generally, you will see this particular scheme disguised as a portfolio management service. Actually, there is no magic formula in the office here, the “returns” acquired are just the money of other investors.
In a new pyramid scheme, the people involved require a little more work. At the top, normally, the pyramid will be the coordinator. They will recruit a specific number of men and women to work at the particular level below these people, and each of the people, men and women, will get their own number of people, and so on. As a result, you end up with a substantial structure that grows exponentially and results as new levels are created and disguised as a pyramid.
