How to spot a Cryptocurrency scam and how to avoid it?

Cryptocurrency is a digital currency popularly used as an investment option nowadays. It is maintained and managed by a decentralized system; needless to say, the field of cryptocurrency investments is packed with scammers. Moreover, a lack of regulation provides fraudsters an opportunity to spread widely.

Steer clear of the threats a cryptocurrency scammer poses by taking appropriate countermeasures. Knowledge about the methods crypto scammers use can save you from future regrets. Some of the strategies owned by the perpetrators of cryptocurrency scams are discussed in this article.

Here are some things to keep in mind before investing in cryptocurrencies,

  • Scammers and fraudulent websites
  • Phishing scams
  • Pump and Dump scams
  • Affinity fraudulence
  • Extortion scams
  • Government impersonation scams
  • Initial Coin Offering (ICO) scams
  • Online dating scams

Scammers and fraudulent websites: 

Unlawful and corrupt scammers establish fictitious websites in order to deceive people into transferring crypto coins they own. Ingenious crypto scammers imitate the design and domain name of existing legitimate websites to trick investors. Through these websites, they garner investors’ information to get access to their accounts and sometimes directly steal their money.

Phishing scams: 

A phishing scam occurs when scammers try to perpetrate mischief through emails. Crypto scammers target random people and disperse malicious links via emails. These links redirect them to their fraudulent websites, where they further carry on with the process of stealing cryptocurrencies.

Pump and dump scams: 

The pump and dump scam is an ingenious strategy most popular among investment scammers. Scammers who perpetrate this scam first buy crypto in bulk to increase the value of the crypto. They sometimes even spread false news to do the same and then sell the coins all together when they have successfully hiked the price. This strategy leads the other investors into selling their crypto coin at a loss.

Affinity fraudulence: 

Affinity fraudulence is when a scammer targets a group or organization that is driven by a particular notion. They use such tactics to fool people in bulk. They find such groups and join one of them and start to manipulate the group members. Generally, scammers who own this strategy target the leader of the group as they believe that it will be easier to mold other members’ interests if they successfully manipulate the leaders into doing as they suggest.

Extortion scams: 

Extortion scams can be considered blackmail as scammers here first garner their targets’ personal information and then threaten them. Scammers force them to transfer their crypto coins to scammers’ wallets and claim to make their private data public otherwise. Sometimes they do not even have private data, and they randomly message people claiming that they have it and compel them to transfer crypto coins.

Government impersonation scams:

Scammers who utilize impersonation strategies often pose as government agents as people easily trust the government and seldom think twice before handing over their private information and identifications. But the truth is government agencies are very less likely to call people randomly asking for this information, especially when it is a matter of cryptocurrencies. As mentioned earlier in this article, everything related to cryptocurrencies is maintained and managed by a decentralized system, and centralized systems like banks and governments have nothing to do with it.

Initial Coin Offering (ICO) Scams: 

A few cryptocurrency companies raise money when they decide to mine a new coin. To raise money, they generally offer tokens for investors to get high returns in exchange for advance payments. This process of raising money is known as Initial Coin Offering or, in short, ICO. Sadly, cryptocurrency scam perpetrators see this as an opportunity to earn benefits. They disguise themselves as such a company, contact their targets and ask for upfront money in the name of Initial Coin Offering. Crypto investors need to be aware of such offers, as it is hard to differentiate between legitimate and illegitimate companies. 

Online Dating Scams:

Crypto scammers consider online dating sites as a great platform to perpetrate forgery. They approach random people as their admirers and mold their interests into cryptocurrency investments. Scammers approach them as investment enthusiasts and somehow convince them that their account is not secure. They ask them to give them access to their wallet for safekeeping, but instead of safeguarding it, they transfer their coins into their own account and cease contact from every communication platform.


To stay ahead of extensive threats posed by scammers, a cryptocurrency investor needs to be more careful. Verify everything before you trust. Conduct independent research before transacting your crypto coins to someone unknown. 

Last but not least, remember that there are plenty of fund recovery organizations you can find on the internet that help victims to recover their lost funds. You can easily contact them and seek their help for fund recovery.