Friends, I hope all of you will be doing well with the great blessing of Allah Almighty. Once Again Steemit Crypto Academy arranges a highly need a topic for the contest. Today the theme of the contest is Common Crypto Scams and How to Avoid Them. This post is about my participation in SEC S6-W5. I hope you will get informative stuff In my post.
.png)
Crypto Scams are growing as Crypto is growing. Scammers are active groups living in almost every place in the world that remain in search to find a person who can become their victim of greed, attraction, and investments. They don't have any humanity because they can't feel the problems a person faces who loses his hard earn money.
Crypto Scams are also threatening the development and adoption of Crypto Currency because many big whales and Investors leave this market because they fear losing their hard earn money.
I hope in this article I will play my role to spread awareness about the crypto scams so new investors and old investors who don't know much about the ways how scammers steal their money become aware.
A scam is a way by which a person tries to steal money from another person by using it anyway. If the scammer becomes successful in stealing the money by playing and trick to another user then it is known as Scammed. If we consider this example for the digital platform then if a person tries to steal digital assets like cryptocurrency then it is known as a Crypto scam.
Crypto Scams are spreading day by day with the evolution of cryptocurrency. Cryptocurrency is developing day by day and it needs much attention to understand its feature and this thing the scammers took benefits and they usually attack innocent and ignorant people who don't know enough about crypto and start trading by seeing someone making money and they usually don't do their research.
Crypto Scammers are fearless because Crypto is banned or illegal in most countries. So, a central authority is not regulating cryptocurrency and no one can catch them, that's why they are scamming without any fear. If a user submits a complaint then instead of capturing the scammer authority arrest the user as it is an illegal act, especially as it has been seen in my country where people were caught if they plugged a request against a hacker or person in respect to a crypto scam.
Although almost all types of scams are related to users' own mistakes. I mean they follow the advice of hacker or scammer which lead than toward scam. If a user has a detective attitude and investigates every investment opportunity before action he can save from being scammed.
There are more than enough types, which scammers are using to cheat users and to make black money. According to my sense and thinking, I discussed some types of scams that a hacker or scammer may play with you but beware of the advancement and development they are getting more advance in hacking.
This type of scam is done by a group of hackers, they develop a fake Exchange that they do not list on any reputable platform even if their exchange will not be on Coin Market Cap and Coingeko. They will approach the user and will provide a deposit bonus. They will send you emails on regular basis and will try to catch you with some deals and offers.
They will ask you to make a deposit to claim your new user reward or rewards like this, when you make a deposit it will be successfully deposited but when you try to withdraw they will not allow withdrawing your coins. They make such wallets that can not be accessed by users.
Some types of fake wallet scams are also seen in which users can deposit but can't withdraw their money. Be aware of such types of scams and I will prefer to use reputable and well-established exchanges or wallets. Don't do greed because it can cost you big, even you may lose the money you hardly earn.
Initial Game Offerings (IGOs) are also a way to scam users, I am not saying IGO is a scam but scammers are using this method to steal money. IGO is a scheme in which a new project is launched and they show their roadmap and explain how it will work. They launch a game based on blockchain which runs by buying NFTs. In IGOs, initial fundraising is done in which the game collectible is given at a cheap price and there is a chance to make good gains when the game launch and more and more users want to buy the Collectibles, so you can sell your NFTs, and another collectible at a big price.
This scheme was very popular and we see many projects raise funds and develop big games Users also make profit scammers didn't leave it they started making such projects and raised funds but as they were not going to launch anything they disappear with the money they gather.
IGOs scams were also at their peak in 2022 and many users lost their money in greed to make a cheap purchase. One should read the complete roadmap and whitepaper before any investment.
Initial Coin Offering is used by scammers just like IGOs but the difference is in IGOs users buy NFTs and collectibles and in ICOs user purchase coins at cheap prices before the launch of coins. When the ICOs were early launched they were very profitable and literally many users buy coins in early access and sell them when the coin launched on exchanges.
I also take part in ICOs and make money but scammers don't let ICOs safe they start using ICOs as a method to gather black money. Scammers use ICOs in different ways. Some are discussed below:
Scammers use ICOs for scamming but launching fake coins, which don't have any use case and such coins are not going to launch in the future. They just create coins and used to say they will launch the coin on following exchanges and it is a chance to buy coins for cheap because when the coin was launched on an exchange it will skyrocket but they did nothing because they don't have any plans and investment to launch it. They just sell their fake coin and disappear.
Scammers also Use ICOs in other ways, As the ICO (Initial Coin Offering) is mostly done privately and you have to send the Stablecoins or BTC in advance, and then you will receive your coins in a trust wallet or other wallets. Scammers start using the name of big hype projects that were going to launch soon and used to say they are officially allowed to sell the coins users believe in them because they see the name of the project and when they send them the amount they simply block them and not reply again because they don't have any coins and they were just scamming.
Third way they used is they make a fake website identical to the main website and offer ICO there and when a user purchases it they get fake coins instead they want to purchase.
Phishing Scams are not only used to steal crypto but are also being used in forex and other Fait currency even in local currencies. It is the old but most powerful way to steal money.
In Banking 1st scammers make wrong phone calls and pretend to be bankers and higher authorities this thing changes to Promotional messages and if a Pakistani is reading this blog he will know Jeeto Pakistan and Banzir Income Support Scams. They pretend to be helping you or providing you with benefits but in return, they are going to take your sensitive information.
But phishing Scams in Crypto World are something Different. Crypto, scammers send you phishing emails and messages where they will ask you to provide your information. Like I got an email some months before and they pretend they are from Binance support and they want to confirm my identity. They asked me to follow the link to verify my identity otherwise my account will be suspended within 48 Hours.
They use the same layout Binance used to send an email and their mail address was almost identical, Thank God I look carefully at the address before clicking there was written Binence instead of Binance in the email address. So, I came to know they are trying to scam me.
Phishing scams work like this, they will try to capture your mind and they will use the same layout, same loading method, and same pattern. If you don't provide the attention you can't distinguish whether it is real or fake. So, beware of such customer support scams.
Ponzi scheme is also being used to scam users for many years. Almost more than seventy-five percent of all types of Investment on return schemes are scams. In such a scheme, users are ensured that they will get a guaranteed fixed profit and the profit is not 2% or 5. They guarantee more than 30% or 50% and even some companies claim they will return 100% within a month.
How is it possible, There is no method to make such high-profit gain and guaranteed gain. Just think what they will do with your money, the only way they can 2X your money is through trading but trading is risky and profits are never guaranteed there, even professional and highly trained traders lose money.
There is no way to return such heavy returns. So, it is physiologically impossible. Ponzi schemes are fake and never trust any schemes which are ensuring you more than 5% fixed profit on a monthly base it is likely to be impossible. They don't sell any services/Goods and they just say you to deposit and claim your money after a given time.
They have listed fake company registration, certificates, and location on their websites and they write we are working Since 20xx. They try to claim we are in the market for more than 10, 20 years and we have the trust of the market. These are tricks to get your trust nothing more even I see some websites which launch one or two weeks before and write they are working since 2015.
They took money from new users and return it to previous ones but to an extent and they return the money and spread greed by showing more profit if they invest more when a user stops to invest more they block his account and when they think their daily gain is less than they have to pay they shut down their so-called company which is nothing more than a fake website with a cheap domain and hosting.
It is another Ponzi scheme in which they change the name of investment to Cloud Server buying and products of Mining system virtually. In Cloud Mining Scams they say to buy a mining rig and they will actually place a mining rig when your purchase a machine virtually but they don't purchase and place any rig. It is their method to make you a fool and to take money from you.
They will ask you to deposit more and more and when you will stop depositing they will ask you to take a paid referral and even if you did this they will not allow you to withdraw money. At last they will block you or shut down the website when they will arrange enough money to escape.
Arirdrop and giveaways in crypto are biggest way to get your result and scaming is very easy because airdrop are very famous in crypto and every user want free coins for doing a little activities.
Now 99% of Airdrops are scams and if they don't harm your assets they will also not give you a penny and instead of it gather a lot of fan following from you guys on their social media platform and later they misuse their accounts.
I participated in many Airdrops and one or two give me reward which as a whole less than $10. So, here is a thing, Why we are getting risk for some dollar which may result in vanishing our whole account. Yes, I said it right some hackers hack your wallet when your attach to their website and by giving them permission they can transfer your assets.
But if you are still interested in airdrops than I will say make another account and claim airdrops through it, it will be safe and you may get a chance to win a airdrop.
In order to detect whether an Exchange is going to scam or not here are some tips if you follow you can spot the scam:
- Check them if they are listed on Coingeko, Coin Market Cap and have good data on internet you can trust them.
- Check they have liscene or not.
- Check the amount of daily volume trade, if the daily trading volume is good you can trust it.
- Check the exchange ranking.
- Check total assets that exchange hold
If all the data is visible you can trust but even it may be a scam exchange but these precautions may minimize the risk of scam. I will prefer to use Decentralized exchanges and Wallets and If have to choose Centralized than I will prefer Binance, Coinbase, OKX, and some other famous exchanges with high trading volume.
In Order to detect whether this IGO & ICO is fake or legit one must consider some important point that are discussed below:
First of all read the Whitepaper. There is a huge chances that there will be no white paper on fake IGO/ICO but if you find a Whitepaper it doesn't mean it is legal. I have seen many fraud projects use the whitepaper of identical project and after some amendment post on their website. Try to find out the key points and roadmap and if the roadmap is not accurate and development is not being done than huge chances it is fake.
A fake IGO/ICO will not mention its team members and if shown then they will be anonymous. A legit project mention the team members because they are strength of the project and they also mention their social accounts like twitter and Likedln. But fake and scam project hide the identity of team.
Websitte will be poor designed and may be SSL certificate will be invalid.
Website will not be accessed by searching it only can be accessed through link or invitation because it will not be ranked on the webpages.
DYOR is a best method to prevent yourself from scammers and it is necessary for every investment, It doesn't matter it is related to crypto or not.
In order to detect a phising scam, there are some tips which are mentioned below:
- Read the email 2 to 3 times and than took action.
- If you received any SMS related to your financial details, 1st don't reply the mail at instant, even it is written your account will blocked in 1 minute.
- Read the email address and match it to the previous email.
- If the link is visible than read the link address and match with the original website or app name.
- Scammers use identical name tags and website name they change mostly (e, i, a).
- Contact the support if you think it is a matter to discussed other wise ignore and send to spam.
Never ever click on links send through untruested platform and asking about your wallet. It is a big chance that they may be trying to hack your wallet.
- One thing that always entrap you in ponzi scheme is greed, if you see huge returns within few days than Im damn sure it is a ponzi scheme.
- Gurranted Profit and fix percentage profit is impossible especially in crypto world so they want to catch your through teasing ads and promotion of high returns.
- Limited time offer tag, this thing will rush you to the project but a good and long term project never ask you for hurry investment.
According to me, the fastest method to make money is trading and in trading there is a equal risk of loss. So, learn trading by your own to make money. There is no other legit way for huge profits.
- There is a no specific method to spot out give away scam because every project ask you do to nothing.
- Try to ignore giveaways because more than half are scams and reaming not give you money.
- Attach your second wallet to any giveaway website which is empty.
Yes, I scammed once. The story is too bad and Literally i don't want to discuss because whenever I remember it my heart become sad. But this community is the community i like the most so I want to tell the story when and how was I scammed and not only me my friend @steemdoctor1 also become the victim of that scam as we mostly invest together.
It was the days when Stepn was launched. There was a great hype of move 2 earn concept. I read the whitepaper of the Stepn and I like to invest in it but when the NFT Sneakers launch it was far than my approach as i cant pay $1500 for a NFT Sneaker. But I really want to buy it. I see many YouTubers who buy it and make money within 30 days and also cover their capital.
I also participated in the Binance Stepn NFT sneaker because Binance was going to withdraw 500 sneakers at cheap price of $250 but i couldn't get chance in that Draw. I was eager to have a sneaker so i can run and make money and I also love the features that stepn provide.
In those days a new project was announced and I know it on a telegram link. It as Biken which was totally on the Stepn but here in stepn we have to buy Sneaker but there we have to buy Bike. When I came to know about the project I show interest in it and i asked steemdoctor1 to invest together in it he become aggred as he was also a fan of Stepn.
We decided to participate in the IGO in which we get a box with an NFT Bike and some tokens. I bought a box of $200 and My friend bought a box of $150. We were excited about the project and the project make $500000 within a week and then they start ignoring discord questions and other channels.
Than they announce another IGO and this time they increase the price of box and coins as well and also announce they are going to launch the coin on Pancake swap soon but they need some more liquidity funds so they have to reopen the IGO but this time price will be high to benefit previous buyers. But this was their other trap they make another $250000 and then they down the website and leave telegram and discord channels.
I was really depressed and this was my first incident of scams in crypto world. But Now I took my decision with my brian not with my heart and many scammers contact me but they get nothing. This scam was a lesson for me and i learn a lot from it.
Crypto is a next-generation Financial sector and we have to adapt it to get success. Everyone has to switch to digital currency now or later. So, we have to do some research as well as make an attitude to prevent ourselves from crypto scams. Scammers are very smart and they know our emotions and nerves and they know well how they can trap us in their scam.
Today I will try to share some protective measures, and I hope they will help a lot to minimize the scam risk.
Every approach is not a chance, especially in cryptocurrency if someone approaches you it doesn't mean it is a chance to get bigger. In the crypto world if someone contacts you first and pretend to be a professional trader and ask you for account management and stuff like this then one thing to keep in mind is that a professional person doesn't need to approach a customer, and the person who approaches you there is 95% chance that he is a scammer.
Keep your attitude a little bit detective when you are dealing with cryptocurrency and take every person as a scammer who contacts you first because the government and Police is not going to help you in the future if you have been scammed.
- DYOR (Do Your Own Research) is the best way to protect yourself from scams.
- There is no need to ask someone to let me know if this project is a scam or not because you're going to invest so your money will be lost not there who will give you advice.
- Research projects using social media, checking their account fan following, trading volume, and historical data.
- Do a complete fundamental analysis and then put your money in.
- You can check its worth by visiting social platforms like Twitter if people have positive points of view about the project or coin which mean people are interested in investing in that project.
- Check the team of the project and find their social media accounts and check which personality follows him and what is his status In the community.
.jpg)
- Use 2FA (Two-factor Authentication) this is the best tool to prevent yourself from scammers.
- 2 Factor Authentication includes the verification to access your account by verifying your registered email and Phone number.
- They will send you an SMS on your email and Phone no when you are going to withdraw your money, log in on the new device, and do any act related to your funds.
- 2FA Authentication helps a lot even if someone is trying to access your account you will come to know about it through email and SMS.
An extra layer of security can be added by placing a fingerprint to open your app so if you lost your phone then the stealer can't access your wallet at the instant and you may get a chance to report it and transfer your funds before the Hacker/Scammer.
- You can also use Google Authenticator because it is much safe and it is very difficult and equal to impossible to bypass the security verification.
- It is a little bit hard to differentiate a fake and real account, But there is a difference in the mail address and the link they will provide will also have another address with a change of spelling.
- Ignore the emails which ask you about investment and huge returns.
- Don't open any link in the email received from an unknown third party.
- Don't engage with scammers because they will make up your mind and then you will follow in greed.
Crypto is the need of the hour but it needs much attention to safely handle it. There is great potential in Crypto to evolve the world but if you don't pay attention it will cost you higher. The best way is to follow the security measures, Don't try to have a shortcut for money, don't click on suspicious links, and be careful while using your wallet. After these measures, your account will be more safer than the bank and you can enjoy the digital world.
I want to invite @pathanapsana, @rasel72, @steemdoctor1, @drhira, @lavanyalakshman, @misssj and @nadiaturrina to take part in this contest.
This is a very important aspect everyone should bear in mind before going into any crypto project because when you get scammed, there is no police or any customer care service to run to.
Goodluck in the contest 👍🏼
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes, When we get scammed no one going to help us. So, we have to take care by ourself.
Thank you for your kind visit my friend.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hello Friend
WOW your post is awesome. You sharing with us all details about this topic. I guess you have some differents experences.
I will do a great post like you next time. Good luck my friend 👍🏻
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for your appreciation. This means a lot to me.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
As always, you have presented a very amazing article for us dear friend, and I have learnt alot from your lecture.
Scammers will often use flashy images, logos and other tricks to try to make their offer look legitimate, but don’t let them fool you. Do your due diligence and make sure you understand exactly what you’re getting into before you commit to anything.
You have said it all here friend. Be especially wary of anyone who tells you that an investment will make you rich overnight. If a person or company is promising you extraordinary returns, it’s probably a scam. Similarly, never invest more than you can afford to lose, and always do your own research before investing in any project.
Thanks for sharing and goodluck in this contest.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for detail comment.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
But by applying it to a few hundred users, they get a good sum with which to disappear without a trace and with many people disappointed or crying for losing their savings. Thanks for detailing your most well-known tactics. Regards!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for detail comment.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Assalam-o-Alikaum dude.
Mjy umeed ha k ap kheriyat sy hon gy or jesa k ap janty hain k hamari trf sardi ka rujhan arooj pazeer ha to ap is sardi sy khob lutaf utha rhy hon gy.
Apki is post py meri aamad ka maqsad ap k khobsurat kam ki tareef krna ha or me ye bat krny me zara galt mehsoos ni krta k ap ny is post ko nehayat umdah tareeky me biyan kiya ha.
Crypto scams k bary me apky ideas kabile-e-tareef hain or ap ny resaerch work me bhi acha khasa time saraf kia ha jo k is post sy zahir ha.
Apny bilkul baja farmaya kay hum crypto scams sy bach skty hain agr hum ap k diye gay points par muamal toor par tawajoo dein or in ko apnaiyn.
Yes, phishing scams sy bachaooo isi sorat me mumkin ha k hum unknown logon sy any waly scam messages or fake mails ko nazr andaz krein or in ko foran block krein.
Mazeed bran, me apko ye kehna chahun ga k apny BIKEN ka scene remind kr k mery zakham tazaa kr diye hain or umeed ha k hum ainda is trha k frauds sy mehfooz rhy gy.
Apki keemti post padh kar bohat khushi mili or ummed ha kay ap ko mera comment b acha lagy ga. Me apki taraki ka khuwahish mand hun.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Mery sb sy pyary dost, mai apka shukria ada krta hun k apne apna qimati waqt nikal kr meri post pr futsat sy comment kiya.
Mai apka behad shukr guzar hun. Ap isi trha muhe support krty rhyn qk apki support mery liye bht zarori hai, Apki support sy myje mzaeed acha likhne ki himt milti hai...!!!
Umeed hai ap is mhnt ko jari rkhyn gy or meri isi teha madad krty rhy gy. Allah apko jaza ata famryae or mery sab sy pyare or qimiti dost ki hifazt farmaye or kamyabion sy nawazy.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit