5 Crypto Scams Investors Should Know About

The growing popularity of cryptocurrencies has led to a spurt in the rise in crypto scams. As digital assets gain attraction, fraudsters are also finding new ways to lure people with promises of huge profits. To stay protected, investors need to stay aware of these five common types of crypto scams.

Phishing is one of the oldest and most common cryptocurrency scams. It usually attracts users into sharing wallet information through fake websites or support chats. Once fraudsters get the access, they can drain the cryptocurrency wallet within seconds. As such, it’s advisable to stick with certified apps and official websites rather than click on random links or messages that claim to offer assistance.

Rug pulls happen when developers suddenly vanish after raising funds through a new token or project, leaving investors with worthless assets. Upon receiving sufficient funds, the group either removes liquidity or stops operations. Users should always ensure the projects are confirmed, the token activity appears authentic on the chain, and the liquidity is locked before they make any investment.

Scammers often post links on social media or messaging apps, claiming to offer free tokens, rewards, or early access to new crypto projects. When users connect their digital wallets to these apps, they unintentionally allow the criminals access to their assets. Once that happens, the money can vanish in seconds and is nearly impossible to recover. Before linking your wallet, always verify the source, and keep in mind that if an offer sounds too good to be true, it’s a red flag.

Scammers are now using AI-generated deepfake videos and voice clones to beguile crypto investors. Fake accounts of well-known traders or influencers are frequently featured in these videos, advertising of new tokens (fake) and requesting cryptocurrency transfers to validate or claim awards. People are tricked into falling for the videos because they appear so legitimate. Users should verify such claims before taking actions through official project pages, and never risk cryptocurrency based on videos or posts on social media.

These scams usually promise easy profits and quick returns through crypto investment offers. At first, everything looks genuine because early investors get paid a little amount. Then, the scheme falls apart and everyone’s money disappears. The common red flag is unrealistic promises or platforms that emphasise recruiting new members. Genuine crypto investments carry risk. Thus, any offer that sounds risk-free or too good to be true should be avoided.