Most Common Crypto Scams in 2024: How to Spot Them and Protect Your Money
Staff Writer • 2024-07-26
In 2023, over $2 billion was lost to hacks, scams, and exploits in the cryptocurrency space. So far, 2024 has seen over $400 million stolen, highlighting the persistent threat of crypto fraud. Despite advancements in technology and increased user awareness, scammers continue to find ways to steal assets from unsuspecting investors. To combat this, experts at Kryptocasinos.com have compiled a list of the most common scams of 2024, based on data from the Department of Financial Protection and Innovation (DFPI) 'Crypto Scam Tracker.' Fraudulent Trading Platforms Fraudulent trading platforms are the most reported type of scam in 2024, accounting for 87% of all incidents reported to the DFPI. These scams involve fake websites or applications that mimic legitimate trading platforms, convincing victims to deposit funds. The fraudulent platforms often replicate price movements and generate artificial gains to appear genuine. How to Avoid These Scams: • Only invest through trusted exchanges or move crypto to reliable wallets. • Double-check URLs to ensure they are legitimate; use online tools to verify website authenticity. • For apps, verify the developer's information and app details in your device’s app store. • Be wary of anyone pushing you to deposit funds into an unknown platform, especially if they are a stranger. Pig Butchering Scam Pig butchering scams, responsible for 58% of scam reports, involve long-term investment fraud where victims are tricked into contributing more and more to a fraudulent scheme. Perpetrators build trust with the victim before "butchering" them by stealing their funds. These scams are often executed via social media, with fraudulent platforms offering artificial profits to keep victims depositing more money. How to Avoid These Scams: • Ignore and block messages from strangers on social media, WhatsApp, or text. • Double-check the identity of anyone claiming to be a friend or family member. • Be cautious of individuals who avoid phone conversations or in-person meetings. Imposter Scams Imposter scams, reported in 27% of cases, involve fraudsters posing as reputable companies, government representatives, or well-known individuals to gain access to victims' systems and personal data. These scammers often use social media to initiate contact and may try to move conversations to platforms like WhatsApp. How to Avoid These Scams: • Be skeptical of messages from strangers on social media urging you to invest in crypto. • Verify the legitimacy of any investment opportunities by checking URLs and company details. • Recognize that reputable companies will not reach out to you personally to solicit investments. Romance Scams Romance scams, comprising 11% of scam reports, exploit the popularity of social media and dating platforms. Scammers adopt fake profiles to gain victims' affection and trust, then manipulate them into transferring money. A notable case involved a California resident who lost over $50,000 after being convinced to invest in a fraudulent platform by someone they met on a dating app. How to Avoid These Scams: • Approach any online relationship with caution, especially if the person suggests investing money. • Use Google to back-search images to check for stolen photos. • Be wary of profiles pushing investment opportunities, as they may be using stolen identities. Expert Advice A spokesperson from Kryptocasinos.com emphasized the importance of vigilance in the crypto space: "In the world of cryptocurrencies, scams are a real threat, so it's important to stay safe. Always do your research and make sure you're using trusted platforms and wallets. Never share your private keys or personal information with anyone. Be wary of offers that seem too good to be true, and double-check everything before you invest. By staying informed and being careful, you can protect yourself from scams and safely enjoy the benefits of cryptocurrencies."
See More Posts
Cardy
Copyright © 2021 Govest, Inc. All rights reserved.