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Common and Uncommon Cryptocurrency Scams

The bitcoin situation in the market is rapidly shifting, and the nature of its impact on the future of transactions has left the world in hysterics such as volatility, risk, reward, and loss. As retail investors, speculators, and various investment firms continue to focus on the lucrative cryptocurrency markets, scammers and cheaters have also focused on these markets to defraud people of their money. Scammers are increasingly using cryptocurrency scams to trick people into sending money. And they come in many forms.

Because the number of reported crypto frauds is on the rise, it is critical to be aware of the most common and uncommon types of scams and the things you may do to safeguard yourself against being duped.

Common and Uncommon Cryptocurrency Scams

Before you learn the various crypto scams, also know that many cryptocurrency scam recovery companies out there will help you or anyone get your money back. These organizations employ experts who will guarantee that you receive your money back. Before approaching the scammer, these experts want to gather all of the data they could use against him. They are also well-versed in dealing with such scams.

Common Crypto scams

Fake ICO Scams

ICO means Initial Coin Offering. They are regarded as "popular fundraising methods" employed by businesses and startups. The ICO is a means of raising funds for organizations looking to create a new coin, app, or service. It consists of a whitepaper, budget structure, crypto functions, usage, and a roadmap for the company. 

Fake ICO means that the scammers either do not have a whitepaper or are copying the said paper of some other company; typo's in the whitepaper, unclear roadmap. These are red flags that investors should notice to protect themselves from falling into such traps. 


Crypto phishing, unlike traditional phishing, does not involve getting your bank credentials. Instead, it means getting the key to your crypto wallet. These are known as "technical support scams" because the perpetrator frequently poses as tech support to obtain your information.

Representatives from shell corporations, or those pretending to be from legitimate ones, will contact you and volunteer to help manage your cryptocurrency in exchange for your login credentials. Remember, never provide any sensitive information to just about anyone, irrespective of how convincing they seem. Make sure to check and double-check their data, or better, ignore or delete their emails. 

If ever you are approached by a broker to invest in some scheme or asked to provide any kind of sensitive information, make sure you check if he is regulated first. The Commodity Futures and Trading Commission (CFTC) has a list of unregulated and fraudulent brokers. Check it out. Also, if you do not find him on the list, know that no broker will ask you for your private information. So do not provide them with it. 

Giveaway scams

Because some celebrities and public figures regularly discuss cryptocurrency on their social media accounts, scammers will organize bogus giveaways using their names and likenesses to defraud people. They may even respond to the giveaway post using other fake accounts to make it appear legitimate. 

Fraudulent posts often include screenshots to make the giveaway look legal and a link (or QR code) to the website. You'll be requested to "verify" your cryptocurrency wallet address by transferring payment when you access the site. Never believe freebies that need money since legitimate businesses would never ask for your credit card information or login passwords.

Ponzi scheme

Ponzi is an investment scam where current investors are compensated with funds obtained from new investors. Ponzi scheme organizers frequently promise that they will invest your money and generate good yields with little to no risk. However, Ponzi schemes require a constant flow of new money to survive because they have little or no legitimate earnings. As a result, these programs usually fail if it becomes difficult to hire new investors or if any existing investors are cashing out.

Uncommon Crypto scams

P2P Transactions

P2P, or peer-to-peer transactions, eliminate the intermediaries, i.e., the exchange platform, from the trading equation, allowing you to purchase and sell cryptocurrencies directly. Although there is nothing necessarily wrong with this approach, it results in certain exposure levels, which can improve your chances of falling prey to scammers. Scammers can use a variety of clever tricks to deceive unsuspecting traders on peer-to-peer trading platforms, including mixing dots and commas, ghost platforms usage, address spoofing, etc. 

Overnight trades

The Overnight Trades scam is a scam that almost every trader or newbie falls victim to. If you have crypto-money or coins, you will want to buy more or sell them at a higher price to profit more. As a result, you become a victim of a shady deal with a dubious broker. When you ask how the trade went, he informs you that he couldn't upscale the business or the price dropped, so the coins are now worth nothing. As a result, you lose the money or coins you had, and the dealer receives your coins.

Fraudulent Wallets

The fraudulent wallet scam is closely related to the internet-age practice of phishing. On the other hand, fraud wallets usually wait for you to come to them rather than sending out emails posing as a legitimate organization. Like genuine crypto wallets, the wallets can take the form of a website or a mobile app. Everything may appear to be completely honest: a gleaming logo, high ratings, a stylish interface; in fact, just the fact that a wallet app is available on the Apple App Store  and Play store may appear to be sufficient reason to believe a wallet is genuine.

The scammers exploit the old saying, "looks can be deceiving." When a person signs up for a fraudulent wallet, they are essentially doing all of the work for the scammer. They enter their information, link a card or two, and load cryptocurrency directly into the hands of the scammers. The scammers then vanished with the coins as quickly as they appeared.