What Are the Most Popular Crypto Scams to Watch For in 2024
If you are interested in investing in crypto or you have digital assets already, you’ll want to know how the most common types of crypto scams work, how to spot them and what you can do if you become a victim. Read on to get an overview of the most common crypto scams authorities are seeing right now, plus how to spot them early.
“Business opportunity” scams
This scam can play out in a number of ways, but it typically takes place when someone contacts you with a business opportunity with the promise of helping you grow rich. In some cases, scammers get you to fork over your crypto by telling you they can provide you with exceptional returns, even doubling or tripling your crypto assets overnight.
Either way, you should know that there’s no such thing as “guaranteed returns,” and that’s especially true when it comes to digital assets. If someone contacts you and says they can work wonders with your crypto and make you wealthy in a hurry, don’t reply.
Phishing scams
A phishing scam takes place when someone pretends to be someone else, usually a company, in order to get you to willingly share private information. Many crypto phishing scams aim to get you to share your private crypto wallet keys, usually by sending an official-looking email that asks you to log in to your account.
Pump and dump schemes
This scam takes place when a group of people get together to entice others into investing in a particular coin, usually by posting on social media to build up hype. From there, scammers work together to drive up the price of the asset until they all simultaneously cash out and leave all the new and excited investors holding the bag.
How to avoid becoming a victim
While watching out for the crypto scam “red flags” we outline above can help you avoid trouble, there are other steps you can take to protect your digital assets. Consider the following moves to avoid becoming the victim of a crypto scheme:
Protect your crypto with cold storage
You can keep your crypto in web-based, mobile or desktop wallets that are all considered “hot storage,” but opting for cold storage instead can help you keep your assets safe. You can even keep your crypto in a hardware wallet that is actually a small device you can keep at home. This kind of wallet lets you keep the keys to your crypto in your possession at all times.