With the growing number of crypto scams going around these days, it’s become important that traders know how to spot them. Besides the common online dating scams that have become common, scammers are also impersonating important officials. This guide will walk you through the different types of scams and how you can avoid them.
Business and Government Impersonators
In job, government, or business impersonator scams, a person will lie about being someone trustworthy. This is to convince you into sending them money via a crypto transaction. In one type of scam, the person may impersonate a well-known company. For instance, the scammer may claim to be from a company such as FedEx, Microsoft, Amazon, or even your bank.
They may send you a message on your social media account, a text message, or an email. In fact, they may even call you or send a pop-up alert on your device. Some of the most common scripts in these types of scams is that your money is at risk of being stolen or that your account is susceptible to fraud.
So, if you end up calling back the number in a pop-up, answering a call, or clicking on the link in a message, it’s connected to the scammer.
Business That’s Offering Fraudulent Cryptocurrency
The representative who contacts you may say that their company is entering the cryptocurrency industry and is issuing their own token. There may be many signs that make it seem legitimate.
For example, you may notice a great website, news articles, testimonials, and even social media advertisements. However, all of these things are designed to convince people that it’s a legitimate and secure investment when it’s not.
Rather, these cryptocurrencies are a scam that steals money from the people buying them. While you’re seemingly investing in a cryptocurrency, it doesn’t hold any value and was simply a setup to trick you out of your money.
Before you end up purchasing any cryptocurrency, it’s important that you do your research on the company that has developed them. If it’s an actual company that you can reliably invest in, then it’s likely that established media outlets will have covered the release of the token.
Impersonating as Utility Companies or Law Enforcement
In some situations, the scammer may impersonate a utility company, law enforcement agency, or even a government agency. Often, they say that your account is under investigation or that it’s frozen and you won’t be able to receive your benefits.
Then, they will present the option of purchasing cryptocurrency as a solution to the problem. Then, they will send you a wallet address where you can send the cryptocurrency so that it stays ‘secure.’ There have even been cases in which scammers walk you through the process step by step. They may guide you to a crypto ATM and tell you how to insert cash that will be converted into crypto tokens.
After that, they’ll provide you with a QR code where you can send the tokens. This transaction will send the cryptocurrency to their wallet address. After that, it’s gone and it’s virtually impossible to recover your money. Since blockchain transactions are permanent, the only way to get back your money is if the scammer sends it back to you.
Bottom Line
To sum it up, you have to remember that no legitimate government entity or business will ever message you on social media or text you asking for money. Moreover, they will never require you to do so in cryptocurrency. If they ask you to do so, it’s a scam. If you receive an unexpected text, social media message, or email it contains a link, don’t click on it. Similarly, if anyone contacts you out of the blue, demanding that you pay them, never do so with cryptocurrency. And if someone asks you to pay a fee to get a job, it’s a scam as well.
The post A Guide To Spot Potential Crypto Scams first appeared on CryptocyNews.com.
from CryptocyNews.com https://www.cryptocynews.com/a-guide-to-spot-potential-crypto-scams/
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