If you are a victim of cryptocurrency scams, there is little chance of getting your cryptos back. Although, you can try reporting the scam to the Federal Trade Commission (FTC). Are you wondering how to avoid being a victim of crypto scams and how to report them? This article is for you! ..

Cryptocurrency Scams

According to a recent FTC report, more than 40 thousand people have lost over one billion dollars from crypto scams since 2021. The top cryptocurrency fraud reported was investment scams with losses of 575 million dollars. The losses in 2021 were almost 60 times the loss in 2018. Bitcoin, Tether, and Ether were the top three cryptocurrencies that scammers used to pay themselves. To avoid getting scammed, here are the ways to detect scammers:

  1. Do not invest money you cannot afford to lose.
  2. Do not give out personal information such as your address or phone number.
  3. Be suspicious of any unsolicited offers or requests for money. ..

Don’t invest in anything you can’t afford to lose. Even if it seems too good to be true, chances are it is. Stocks and cryptocurrencies can go up and down, and it’s uncertain what the future holds. ..

The FTC warns that businesses that demand customers to use cryptocurrency as a form of payment are likely to be scams. This is because there is no real value to cryptocurrencies, and most of the time, these payments will only result in the customer losing money.

As more people are interested in investing in cryptocurrency, it’s important to be aware of the scams that can be perpetrated in this space. Only invest in apps licensed by the government and avoid using brokers that don’t have a good reputation.

Dogecoin and the Shiba Inu coin are popular, like Bitcoin and the Poodle. Everyone talked about them when they were released, and some people even invested in them. Remember that scam? Just about two weeks after the coin launched, someone did a rug-pull, bringing down the coin value to 0 dollars. And another thing to note is that investors couldn’t sell their Dogecoins during the surge. Be careful of coins where you can buy but not sell.

Many online scams contain typos and grammatical errors, which can be easily noticed by users. For example, the SquidGame.cash website that was recently discovered to have numerous mistakes. ..

Don’t blindly believe in reviews or recommendations from anyone.

Don’t fall for a scammer who offers to invest in your cryptocurrency. They will try to bring up the topic gradually, and once you’ve sent them money or crypto, they won’t come back. ..

Crypto investments are risky, and scammers will not have information about the team members.

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Most cryptocurrencies have a purpose, such as being used as a medium of exchange, a store of value, or a unit of account. They are also designed to do something specific, such as providing security and privacy for transactions. If there are no specific details about what the cryptocurrency will do, stay away. ..

How To Report Crypto Scams?

Tips Before Investing In Cryptocurrency

  1. Stay away from suspicious content.
  2. Stay away from “too good to be true.”
  3. Have strong online security measures in place, including strong passwords and not sharing codes with anyone.
  4. Avoid unusual payments and research the crypto, investing site, etc., before investing.
  5. Don’t type crypto sites through google; instead bookmark their real site or keep their URL somewhere for future reference. Scammers often impersonate established sites, so be cautious when clicking links you receive.
  6. Avoid cryptocurrency giveaways - they’re usually a scam!
  7. Don’t invest what you can’t afford to lose - make sure you have enough money saved up to cover any losses! ..

Conclusion

Cryptocurrency investments are becoming increasingly popular, which means there will be scammers looking to take advantage of people. If you are a victim of a scam, report it to your bank, the FTC, CFTC, SEC, or the FBI. By being aware of scams and doing your research before investing, you can avoid becoming a victim. ..

But what about the other side of the coin? The people who are actually making money from cryptocurrency?

Phishing scams are when someone tries to get your personal information by posing as a representative from a company or organization you trust. They may also try to get you to invest in something you don’t want to do. Fake investing platforms are websites that promise you money if you invest in them, but don’t actually have any money to offer.