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Many investors are not aware that crypto developers offer a unique and quick opportunity to make some serious money. These developers offer free cryptos to their target audience through promotional activity called the airdrops, and such activities are quite common in the crypto industry.

Regardless of such promotional activities, crypto airdrop scams are quite common, and you should be aware of them if you are already a crypto investor or wish to invest in the crypto market.

What is a Crypto Airdrop?

The crypto market is quite volatile and very liquid. Every month a new crypto is created; as per statistics, there are more than 2.4 million cryptos in the crypto market.

Bitcoin has been the reigning king of crypto since its inception, having a huge market cap. It is closely followed by Ethereum. Bitcoin was the first cryptocurrency, and a few years after its creation, Ethereum entered the crypto market.

After Ethereum, many other developers started to create their own cryptos, and many are based on Ethereum. Every developer wishes that their crypto becomes the next big thing after Bitcoin and Ethereum. Thus, there is tremendous competition in the crypto market.

To promote their cryptos, developers started to give away free Auroracoin for a limited period. The airdrop was specifically directed towards the citizens of Iceland. Any citizen holding a valid Icelandic national ID card was to receive free Auroracoin, and the developers were to issue 50 percent of the whole supply of coins—10.5 million coins—to the Icelandic people. This was the first-ever airdrop in the history of the crypto industry.

With such success, several developers started to adopt this strategy. If one were to observe the crypto market closely, there are several developers giving away free cryptos through airdrops frequently. Therefore, we have seen a sharp increase in airdrop scams in cryptos.

Why are Airdrops Popular in the Crypto Space?

Bitcoin was the first cryptocurrency that was ever launched. During its inception, each Bitcoin was trading in mere pennies. As of today, at the time of writing this article, each Bitcoin is trending between $60,000 and $65,000.

With the current market turmoil, several crypto users wish that they had a time machine and could buy as many Bitcoins as possible. Many suffer from FOMO, or fear of missing out. No other crypto is even close to the price trend that Bitcoin has. Even the second most ranked crypto as per market capitalization, each Ethereum token is trending between $2,000 and $2,200 at the time of writing this article.

As a result, if crypto users are faced with the opportunity to get free crypto through airdrops, they are willing to accept it as they too feel that they need to take a chance as they think that it could be the next big thing after Bitcoin.

Thus, several crypto users welcome the idea of getting free cryptos without paying a penny and hope that their price appreciates enough so that they can make a good amount of profit. Thus, scammers take advantage of such features to indulge in airdrop crypto scams.

Understanding Crypto Airdrop Scams

Legitimate airdrops are very common occurrences in the world of cryptocurrencies. The blockchain projects employ them to disseminate the tokens among potential users, generate awareness about the token, and get the community engaged. Now, here’s a detailed insight into what happens in an airdrop:

Airdrops have a few strategic objectives for crypto projects:

• Token Distribution: New projects need to distribute their tokens to users so that they will have a market, and people start doing things on the blockchain.
• Awareness and Marketing: Airdrops create buzz about the project, spreading the word about functionality and potential use cases of a token.
• Rewarding Early Supporters: Projects generally use airdrops to show recognition of loyalty from users who may have already added their contribution to the ecosystem by holding a particular cryptocurrency or otherwise.

Criteria for Getting Correct Legit Airdrops

Legit airdrops are usually characterized by clearly described criteria to qualify participants, while crypto airdrop scams are not.

• Holding a Given Crypto:
  Users who hold a particular cryptocurrency—often on a specific blockchain, say Ethereum—on a snapshot date will be eligible to qualify for an airdrop. For example, projects can take a snapshot of wallets holding Ethereum at a certain block and distribute their tokens proportionally in those wallets.
  
• Community Tasks:
  Some projects promote participation by asking users to perform some task, such as following their social media channels, sharing the project with friends, or even joining groups on communication platforms such as Discord or Telegram.
  
• Sign-Up-Based Airdrops:
  Users may have to sign up on the project website or app and maybe provide information such as their wallet address to receive free tokens.

Distribution Process

After the eligibility criteria have been satisfied, the airdrop tokens are distributed by the protocol transparently and without human interference:

Direct Wallet Transfer: Commonly, airdrop tokens are transferred directly to the cryptocurrency wallet of an eligible user. Usually, it occurs in an automated manner using smart contracts to provide transparency and security.

The decentralized nature is the airdrop’s legitimate application of blockchain technology, which allows for decentralized token distribution, thus not requiring users to make contact with a central authority and not requiring sensitive information, like passwords or private keys.

Regardless, you should be aware that con artists also promise fake airdrop promotional activities.

No Upfront Costs

Free participation is a unique feature of legitimate airdrops, which includes no additional fees or upfront charges. The users get tokens free of charge as a promotion without any mandatory investment or trading required earlier.

Legal and Transparent

KYC (Know Your Customer) Compliance: Some airdrops, especially those concentrating on users in regions with highly regulated areas, require the users to be KYC verified to comply with the AML regulations. Legitimate airdrops requiring this process typically announce this beforehand, and they make a great effort to protect the user’s details.

On the other hand, a true airdrop is transparent about the amount of tokens that will be distributed, the conditions for participation, and what the drop is all about. Often, there is data sent out to the public via official websites, social media, or community forums. Avoid crypto airdrop scams through research and searching for legitimate crypto airdrops.

Examples of True Airdrops

• Uniswap (UNI) Airdrop: One of the more infamous legitimate airdrops was that of Uniswap. It is an exchange platform that, in 2020, rewarded some of its early users by airdropping its governance token, UNI, to any person who at some point had interacted with the platform before a given date.
• Stellar (XLM) Airdrop: Stellar did a few airdrops to market its XLM token, giving away free coins to wallet service users and partners, such as Keybase and Blockchain.com.

Benefits of the Project

Legitimate airdrops not only mean a difference to their participants but also to the projects themselves:

Community Creation: Airdrops can create a community of interested token holders in viewing the success of that project.

Through the project, there will be enough liquidity in the market, stabilizing the value of the token. Free token distribution to a large audience encourages the adoption of the platform; by giving users free tokens, projects encourage them to be engaged with the platform, hence the testing features and becoming long-term users.

Regardless, you must scrutinize and research when someone proposes the benefits of certain crypto airdrops in which you are interested, as scammers are quite active in crypto communities.

Red Flags to Watch for in Airdrop Scams

With the rise of cryptocurrencies, airdrops have become a common way for projects to distribute free tokens to users. However, airdrop scams are rampant, with malicious actors exploiting users’ lack of awareness. Here’s how to spot the red flags of these scams:

Unsolicited Airdrops

Legitimate airdrops are often promoted through official channels. If you receive tokens or offers from unknown sources or projects you’ve never interacted with, it’s a red flag. Scammers often distribute unsolicited tokens that may seem genuine but could lead to malicious activities.

Requests for Private Keys or Seed Phrases

No legitimate project will ever ask for your private keys or seed phrases. Scammers might disguise their request in the form of “verification” or “activation” to claim the airdrop. Never share your keys under any circumstances, as you might fall victim to a fake crypto airdrop scam.

Excessively High Rewards

Scammers lure victims by promising large sums of tokens that seem too good to be true. Always be skeptical of overly generous offers, especially if the project is relatively unknown or lacks credibility.

Suspicious or Fake Websites

Always double-check the URL before connecting your wallet to a website to claim an airdrop. Scammers often replicate legitimate project websites with slight alterations in domain names, tricking users into connecting their wallets, which can lead to theft of funds.

Requiring Upfront Payments or Transaction Fees

Legitimate airdrops never ask participants to pay upfront fees. Be wary of any request to send a small amount of cryptocurrency to “unlock” or “release” your airdrop. These are classic tactics used by scammers to steal your funds. If they ask you to pay “fees,” then you can be certain that it is a crypto airdrop scam.

Unverifiable Project Information

Do your research before participating in any airdrop. Scammers often use fake project names, whitepapers, or social media profiles to appear legitimate. Verify the project’s credibility by checking if it’s listed on trusted platforms, looking for past activity, and reading reviews from credible sources.

Fake Social Media Accounts

Scammers often create fake social media profiles mimicking popular influencers or projects to advertise their fake airdrops. Verify the authenticity of the account by looking for blue verification badges or by visiting the project’s official website for direct links to their social media profiles. Many influencers indulge in airdrop scam tokens, thus, you must be cautious and research before indulging in such activities.

Airdrop Bots and Fake Apps

Beware of airdrop bots or apps that require you to input sensitive information or connect your wallet. Always ensure you’re using official channels to interact with projects. Scammers may deploy bots or phishing apps to collect data and steal funds.

Pressure Tactics

Scammers often use time-sensitive language like “claim now or lose out” to create urgency and prevent victims from thinking through their actions. Legitimate airdrops give users ample time to claim tokens and do not rely on pressure tactics.

Malicious Smart Contracts

Some airdrops may require you to interact with smart contracts to claim tokens. Be extremely cautious, as malicious smart contracts can drain your wallet once you approve access. Only interact with contracts after thoroughly vetting the project and using trusted platforms like Etherscan to verify contract authenticity.

How to Protect Yourself from Airdrop Scams?

To avoid falling victim to a crypto airdrop scam, you should follow the following steps:

• Verify the Source:
  Always verify whether the airdrop is coming from a legitimate source. Visit the official website or social media channels of the project to confirm whether the airdrop is real.
  
  
• Never Share Private Keys:
  No legitimate project will ever ask for your private keys or seed phrases to participate in an airdrop. If any website or individual asks for this information, it’s a red flag.
  
  
• Avoid Suspicious Links:
  Don’t click on any suspicious links in emails, social media posts, or direct messages. Always navigate to the official website manually to ensure you’re not visiting a phishing site.
  
  
• Use a Dedicated Wallet for Airdrops:
  Create a separate wallet to participate in airdrops. This can help protect your main funds in case of any security breach.
  
• Enable Two-Factor Authentication (2FA):
  Activate two-factor authentication for your crypto accounts. Even if a scammer gets hold of your password, 2FA adds an extra layer of security. So even if you fall victim to an airdrop scam, chances for a scammer to hack into your account are very low.
  
  
• Stay Informed:
  Join official communities, follow trusted influencers, and keep up with news in the cryptocurrency space. Being informed about the latest scams can help you avoid falling victim to them.

What to Do If You Fall Victim to an Airdrop Scam?

If you realize that you’ve participated in a scam airdrop, act quickly:

• Revoke permissions to any malicious smart contracts you’ve interacted with.
• Move your funds to a secure wallet immediately.
• Report the scam to the community and the project team if applicable, so others can avoid it.
• Consider using tools that track and block phishing addresses.

How to Identify Legitimate Crypto Airdrops?

Identifying legitimate airdrops can be tricky. Here are the key factors to consider before participating in any airdrop that can assure that you do not fall victim to airdrop scams in crypto 

1. Research the Project

Before participating in any airdrop, you should thoroughly research the project. Here’s what to look for:

• Official Website: Does the project have an official website? Verify if the domain is secure (HTTPS) and matches the project name.
• Whitepaper: A legitimate project should have a detailed whitepaper outlining its goals, technology, and roadmap.
• Team Members: Check if the project discloses its team members. Legitimate projects usually have a transparent and experienced team that is easily verifiable through LinkedIn or other platforms.

2. Check for an Active Community

Most legitimate crypto projects will have an active community on social media platforms like Twitter, Telegram, Discord, or Reddit. Pay attention to:

• Engagement: Are there real, active discussions happening in the community, or is it filled with spam?
• Updates: Is the project regularly updating its community about progress, partnerships, or upcoming milestones?
• Transparency: Are the founders and team members engaging with the community? Legitimate projects are often transparent with their community and answer user questions.

3. Look for Clear Terms and Conditions

A legitimate airdrop will have clear terms and conditions explaining how the distribution works, the eligibility criteria, and any steps you need to follow. Be cautious of airdrops that ask for excessive personal information or have vague instructions.

4. Avoid Sharing Private Keys or Personal Data

One of the most important rules of participating in crypto airdrops is to never share your private keys. Legitimate airdrops will never ask for your wallet’s private key, login credentials, or excessive personal details like government ID numbers. Sharing your private key could result in theft of your funds or identity fraud. So if someone asks for your sensitive details, you can be sure that it is a fake crypto airdrop.

5. Verify on Trusted Platforms

There are several reputable platforms where legitimate crypto airdrops are listed, such as:

• CoinMarketCap: CoinMarketCap often lists verified airdrops and gives essential details about each.
• AirdropAlert: This is another platform that focuses on listing only legitimate airdrops.
• Airdrops.io: A trusted source that curates legitimate airdrops from verified projects.

These platforms vet projects before listing them, reducing the likelihood of encountering scams.

6. Beware of Phishing Attempts

Scammers may create fake airdrop websites that look identical to legitimate ones. Be cautious when clicking on links or visiting new websites. Always double-check the URL and only participate in airdrops through verified and official channels. Use antivirus software to ensure your device is safe from malicious software.

7. Look for Security Audits

Legitimate projects often have security audits conducted by third-party firms. These audits verify the project’s smart contracts and ensure that the technology is safe and reliable. If a project has undergone a reputable security audit, it’s more likely to be legitimate.

Final Thoughts

Vigilance is paramount in the crypto space. Because decentralized finance and cryptocurrencies are spreading with each passing day, they value innovation along with high risks. Cybercrime is also advancing through phishing, Ponzi schemes, and hacking into exchanges. Thus, it’s time for investors to adopt best practices: protect the wallets with seed keys; use two-factor authentication; and research the projects before putting money into them.

Regulatory frameworks are yet to catch up with the rapid growth of crypto markets, and personal vigilance is all the more important. With awareness, good cyber hygiene practices, and usage of reputable platforms, individuals can protect their assets and contribute to a safer digital financial ecosystem. Vigilance is not just a precautionary measure for protecting personal investments but also goes on to uphold the integrity of the broader crypto ecosystem as well.

Regardless, you must research thoroughly and depend upon it and not on someone you have recently met online while considering participating in a crypto airdrop.

FAQs

Home - Crypto

Airdrop farming in the crypto world is an attractive notion that extends your digital asset portfolio. In reality, however, quite a good number of airdrops have become frauds. This article will take you through the crypto airdrop scams, landscape, and detail the different types, how to identify them, and the difference between genuine and fake airdrop scams.

Airdrop scam refers to fraudsters luring people through free cryptocurrency tokens. Still, they have negative intentions. Fraudsters use the trust and popularity earned by real airdrops since they are common strategies for blockchain projects to distribute tokens, increase their visibility, or reward loyal users.

The participants in a valid airdrop will be called upon to perform the following activities: follow a social media account, join their community, or hold a specific token to get some airdropped tokens. 

On the other hand, fraud dwells on methods that scams use to deceive innocent individuals into releasing their personal data, private keys, or even cash.

Fraudsters will take advantage of people’s eagerness for free tokens. These are used to dupe people into revealing personal information or giving wallet access. However complicated all these scams may be, their main goal is fraudulent-participant deception.

Kinds of Airdrop Scams

1. Telegram Airdrop

Some genuine airdrops on Telegram bring in thousands of dollars immediately after listing on exchanges, while most of these airdrops are scams that dupe participants into sharing their tokens. Professional airdrop hunters would testify that authentic and rewarding projects on Telegram are outnumbered by scam projects, especially if one has more than a year’s experience in the game.

We will need to understand why fake Telegram airdrop scams are being created in the first place before we can determine if a project is legitimate. This insight will also show us the possible repercussions of engaging with them.

2. Advance Payment Airdrop

Scam airdrops are run by creating a sham campaign that looks like a real airdrop. The fraudsters might use various fabricated social media accounts, websites, and marketing materials to attract participants. 

Individuals targeted by scams are often instructed to transfer a small amount of cryptocurrency for wallet verification or to settle transaction fees. As soon as the payment is processed, the fraudsters disappear, and the victim is left empty-handed, without the tokens they expected.

3. Malware Airdrop

Victims of this scam are tricked into downloading the malware, which may come disguised as an airdrop application or wallet. The malware can compromise the private keys, record keystrokes, or even take control of the device for serious financial loss.

4. Bounty Airdrops

This method involves completing various tasks to earn tokens, such as following social media accounts, joining online communities, or writing articles. Crypto projects use these activities to increase visibility and expand their user base.

5. Holder Airdrops

This type of airdrop rewards current holders of a specific cryptocurrency. Tokens are allocated according to the quantity or duration for which a user has held the specified token.

6. Hard Fork Airdrops

These happen when a hard fork results in a new cryptocurrency, and developers distribute this new coin to holders of the original coin on the previous chain.

7. Snapshot Airdrops

Tokens are allocated based on a “snapshot” of your wallet holdings taken at a particular moment.

All About Fake Telegram Airdrop Scam

A critical way to differentiate a fake Telegram airdrop project from a real one is when it takes many referrers before you can cash out or withdraw the “free token.” These people are just looking for ways to bring in more people to their scam project to seek a large number of participants.

Next time you see a Telegram airdrop asking for a certain amount of referrers before a withdrawal can be made, it would be wise to have a little doubt about that particular airdrop project.

A fake Telegram airdrop will ask you for a certain amount of fee (Crypto) before you can get your ‘free token’.

This is one of the tell-tale signs that a particular Telegram airdrop is totally fake. An airdrop is meant to be free. It doesn’t make sense for you to pay a fee to get something that is meant to be free. 

The people who usually organize these fake Telegram airdrops are scammers. They plan on preying on unsuspecting, uninformed, and naive airdrop hunters.

A fake Telegram airdrop is not usually linked to an official channel or website.

Legit airdrops usually have official websites, and some even go further to have verified social media accounts. When a particular Telegram airdrop promises a free token, and it is not linked to any official website or social media account(s), then it is probably fake.

A fake Telegram airdrop group may have a post that contains some Grammatical and spelling errors.

Amateurs usually run most fake Telegram airdrop groups. These people do not take the time to correct any grammatical or spelling errors in their posts.

Another reason you should look out for grammatical errors is that some of these projects are run by people based in parts of the world where English may not be the native language.

A Fake Telegram project usually promises large amounts of money.

Like it or not, scammers are extremely smart people; they know that a particular airdrop project will entice more people if they promise a large amount of money in Crypto.

Telegram airdrop scammers usually shoot themselves in the foot with this strategy because the price of an unlisted coin can not be calculated until it has been officially listed on an exchange platform. 

The next time you see a Telegram airdrop project that promises a substantial monetary value, you should be suspicious of such a project.

In conclusion, you should be cautious when a project shows any of the above signs; however, this is not to say there are no real Telegram airdrops, but an airdrop hunter should be careful and knowledgeable about any particular Telegram airdrop before participating in them.

How to Identify Genuine vs Fake Airdrops?

It is often difficult to identify and distinguish between real and fake airdrops, but there are many telltale signs to watch out for. Here are simple ways to help you sift through them:

• Most genuine airdrops come through official channels announcing the crypto project.
• They may ask users to perform some actions: subscribe to a newsletter, like some social media page, or participate in the network. Keep in mind that crypto airdrop scams may be initiated by something like these as mentioned above.
• Actual airdrops never ask for private keys, recovery phrases, or confidential information.
• In contrast, fake airdrops frequently promise high returns with minimal effort and can use high-pressure strategies to push you into acting swiftly. Remember the adage: if it seems too good to be true, it probably is. They may also ask you to transfer a certain amount of cryptocurrency as a ‘verification’ or gas fee to claim your airdropped tokens.

FAQs

Home - Crypto

We are increasingly becoming dependent on technology; in fact, we can even manage our online investments and trading on the tip of our fingers. However, scammers are getting smarter and using the same technology to rip us to such an extent that the crypto market is also not immune to these attacks.

The crypto market is the latest asset class, with many traditional investors trying their luck to make substantial amounts of money. A highly volatile and liquid market, in recent years, has seen a huge surge in the rate of adoption. It also offers highly unrealistic profits compared to traditional financial markets.

Scammers exploit their victims through P2P crypto scams, which have seen an exponential surge in recent years.

Understanding P2P Crypto Scams

Although decentralized transactions are allowed in the cryptocurrency market, their immutability presents a major reversibility difficulty.

Since it is difficult to undo a cryptocurrency transaction, caution must be exercised before transferring cryptocurrency to a different wallet.

How do P2P Crypto Scams Operate?

A new trend that has been increasingly on the rise for P2P or peer-to-peer cryptocurrency scams. Such cryptocurrency lost or taken by scammers can prove to be elusive as cryptocurrency networks work in decentralized systems. Although P2P trading provides much flexibility and low cost to consumers, it gives the crooks some new ways of exploiting security holes and cheating gullible users.

P2P Scams: How Do They Work?

Of course, the P2P scam does exploit the direct nature of P2P transactions. In this scenario, two parties should exchange goods or services for fiat money or some other cryptocurrency without a third party.

Common P2P Trading Scams to Avoid

One of the best ways to avoid falling victim to a P2P crypto scam is to be aware of it and avoid it when such scams present themselves in front of you.

Fake P2P Exchanges

Scammers are known to develop bogus P2P crypto exchanges, websites, or platforms to mimic legitimate exchanges. As these exchanges, websites, and trading platforms are so identical to the real thing that many are misled and end up becoming victims of such fraudulent activities.

These charlatans have one more trick up their sleeves; they offer highly exaggerated liquidity, low fees, or even attractive incentives in the hope tend uptims can innocently bring their dear ones to these bogus investment opportunities.

Once these victims invest in the scam, they are given returns on their investments, convincing them that this is a good business opportunity. Motivated, they end up investing more and more. However, when they try to withdraw money from their account, the funds are either frozen or stolen outright, and the platform disappears. Users have no recourse because these platforms are decentralized and often unregulated.

Identity Theft & Phishing

Scammers frequently impersonate legitimate buyers or sellers by stealing their identities. These con artists will hack into popular trading platforms or create bogus profiles. They gain the trust and confidence of their potential victims and engage in fraudulent transactions.

Scammers, especially, launch phishing campaigns against users to steal their sensitive data like private keys, passwords, or recovery phrases. After stealing the stolen information, they steal those cryptocurrencies from the wallet of the victim.

Chargeback Fraud

These are another very common online P2P cryptocurrency scam. Such scams thrive when fiat currencies are exchanged for cryptocurrencies. The impostors will pretend to be buyers and make the fiat money pass through a payment gateway, such as PayPal or bank transfer, in order for them to receive cryptocurrencies from sellers.

These fraudsters will then reverse the payment that they made through their banks or payment gateways, claiming that it was an unauthorized transaction. So the seller loses out both in the cryptocurrencies and the fiat money.

False Escrow Services

Some P2P platforms will use escrow services, which will hold funds pending both parties’ confirmation of completing the trade. Scammers often design fake escrow sites or services to entice users to send their money, thinking their money is being locked away in a safe escrow. The scammers never return the cryptocurrency or the funds held to the user.

Overpayment Scams

In an overpayment scam, the scammer agrees to buy cryptocurrency at an overcharged price. The scammer “accidentally” pays more than the amount due to the seller and asks for it to be refunded in fiat. The scammer will make the payment using stolen funds or a fraudulent method of payment, and once the seller agrees to refund the difference, the original payment will be reversed and the seller left holding the bag.

Fake Payment Confirmations

In some P2P crypto transactions, fraudsters provide fake screenshots or confirmations of payment to deceive the seller into letting go of the cryptocurrency. Since the victim believes payment has been made, he/she sends the cryptocurrency to the scammer, and by the time the victim finds out it was not a successful transaction, it becomes too late to reverse the crypto transfer.

Advanced Fee Fraud

Scammers promise users large sums of cryptocurrency or exclusive opportunities to buy crypto at a discount if they provide a small “advance fee.” Thinking that it is a great opportunity to make a good amount of money, they will pay these charlatans with the said amount. Once they send the fee, these fraudsters will vanish without delivering the promised cryptocurrency or service. Although this is an age-old traditional “advance fee” scam but adapted for the crypto space.

Rug Pull Scams in P2P Token Trading

Every day a new cryptocurrency comes into existence. They are hyped based on how they would revolutionize the currency crypto market, with the hope of attracting attention and increasing the adoption rate. Regardless, blockchain technology is expensive, and crowdfunding is quite common in the crypto industry. However, many are fake, and those who invest lose thousands of dollars on these worthless coins.

Scammers will convince their audience that it will be the next Bitcoin, the reigning coin in the entire crypto market. They create bogus crypto and go for crowdfunding. Once a large enough amount of money is invested, the creators withdraw all the liquidity from the token’s market, leaving investors with worthless tokens. This can happen quickly and leave victims with no way to recover their funds.

Fake Wallet Apps

Scammers also use fake wallet apps that appear to be legitimate cryptocurrency wallets. These wallets may appear in app stores or be promoted via phishing emails. Once crypto users install these apps and deposit their funds, the scammer can easily drain their accounts. In such peer-to-peer scams, scammers encourage their potential victims to use bogus apps as part of the transaction process, gaining trust before the theft occurs.

Impersonating Customer Support

On P2P platforms, scammers may impersonate customer support representatives to deceive users. They fool their potential victims by sending a message claiming that there was an issue with their transaction or wallet. Charlatans will start to ask for personal details like private keys, passwords, or access to accounts. Thinking that they are dealing with official support may provide this information, resulting in their funds being stolen.

“Pump and Dump” Schemes

Promoting cryptos through text, messaging, and social media platforms is quite common in the crypto industry. Such P2P frauds, initiated by those with token-based ecosystems, can fall prey to pump-and-dump schemes. Scammers will buy some cryptos at a lower price before promoting them. Once they have sufficiently bought these cryptos, they start to promote them. Thus, their price artificially inflates by creating hype and encouraging people to buy in. The scammers then earn their money by selling their holdings when the price is up. In this case, it crashes and leaves most investors with huge losses.

Instances where crypto exchanges fell prey to P2P crypto scams

Several crypto exchanges offer P2P transaction services. Thus, in recent years, social media platforms have been flooded with Binance P2P scams and Bybit P2P scams online. There are also other crypto platforms that have also been frequent targets of cyber attacks.

Thus, as a crypto user, you should be aware of such threats to avoid falling victim to such peer-to-peer scams.

Avoid falling victim to P2P Crypto Scams

There are ways to avoid falling victim to online scams; all you need to do is remember the steps that we have laid out for you down below:

Use Reputable Platforms

Stick to well-known P2P exchanges with positive reviews and a proven track record. For this, you need to go online and do some research. For this, you can also join various crypto communities.

Escrow Services

Do decent research on the crypto exchanges that provide credible escrow services to safeguard your funds until both parties confirm the transaction. Choose those that do not exaggerate unrealistic returns on investments. Scammers tend to impersonate well-known crypto exchanges to lure their unsuspected victims towards them.

Check Buyers/Sellers Identity

Confirm the identity of your customer or seller by cross-checking their information on different sites. Read reviews that were suggested or provided to you by real users, not robots, as these will help you distinguish between the real and the unreal. Frequently, fake businesses use robots to create fake reviews for you to engage with them.

Scammers offer unrealistic business opportunities, promising high gains on investments. Most of the time they offer deals like overpayment offers or pressure to complete a transaction quickly; these are the common red flags.

Protect Personal Information

A genuine crypto exchange, platform, broker, and brokerage firm will avoid asking for your account details, such as private keys, passwords, and other sensitive or personal information. You can be sure that you are dealing with a scammer if someone begins probing you with these sensitive details regarding you.

Final Thoughts

P2P crypto scams are highly sophisticated and will end up crippling your finances if you fall for them. Thus, you should tread carefully with P2P crypto trade, verifying the credibility of the system and the people behind it and using secure means to transfer funds. Staying updated with the latest crypto scams and scrutinizing any business opportunity will keep you from falling victim to such P2P crypto scams.

FAQs

Introduction

Decentralized Finance, or DeFi, is rapidly transforming the finance sector by enabling people to manage their money directly with others, bypassing traditional banks. This new method empowers users with unparalleled control over their financial transactions through technology, but it also introduces new risks.

As DeFi gains popularity, it not only attracts investors and financial enthusiasts but also malicious actors looking to exploit the system. Understanding and navigating these risks is critical for anyone involved in this evolving space.

What Are DeFi Scams?

What Exactly are DeFi Scams?

• DeFi scams refer to malicious activities within the DeFi sector aimed at deceiving users out of their assets.
• Common DeFi scams can range from rug pulls to sophisticated phishing attacks.
• Understanding what DeFi scams are is the first step in protecting yourself from potential financial losses.

Understanding DeFi Scams

DeFi scams are fraudulent activities aimed at siphoning off investors’ funds under the guise of legitimate DeFi projects. These scams exploit the decentralized nature of the platforms, where traditional safeguards of centralized finance are absent. In 2024, as the landscape continues to evolve, so do the tactics of scammers, making it crucial for users to remain vigilant.

Common DeFi Scams in 2024

Rug Pulls

• This scam occurs when developers promote a new project to raise funds and then abruptly withdraw all the money from the project, leaving investors with worthless tokens.
• Rug pulls have become infamously common, often resulting in significant financial losses for investors.

Phishing Scams

Phishing remains a prevalent method where scammers create fake websites or send emails posing as legitimate DeFi platforms to steal users’ credentials and funds.

Pig Butchering Scams

These are elaborate schemes where scammers fatten the victim’s trust over time and then coax them into sending large sums of money under the guise of a lucrative investment opportunity.

Red Flags and How to Spot DeFi Scams

Lack of Transparency

• Genuine DeFi projects typically have clear documentation and transparent operations.
• A lack of these elements can be a significant red flag.

Suspicious Tokenomics

Projects that allocate a disproportionate amount of pre-mined tokens to the developers or insiders might be planning to dump these tokens, crashing the price and leaving other investors in loss.

Unrealistic Returns

• Promises of high returns with little or no risk are a classic sign of a scam.
• Always approach such claims with skepticism.

2024: A Year of Decreasing DeFi Scams But Increasing Sophistication

• From 2022 to August 2024, DeFi scams have continued to pose significant challenges.
• In 2022, there were 155 incidents totaling $3,180,023,103 in losses.
• By 2023, the incidents rose to 306, with losses amounting to $1,394,142,600.
• However, in 2024, the number of incidents decreased to 80, resulting in total losses of $220,810,113.
• These numbers show that there’s still a big need for good scam recovery services and more careful attention in the financial technology sector.

Steps to Avoid DeFi Scams – How to Outsmart Scammers

1.Due Diligence

• Always research a project thoroughly before investing.
• This includes reading the whitepaper, checking the project’s code if available, and researching the team behind the project.

2. Use of Reputable Sources

• Engage with established and reputable platforms and avoid clicking on unverified links.
• Always double-check URLs and email addresses for authenticity.

3. Security Measures

• Implement strong security practices such as using hardware wallets, enabling two-factor authentication, and never sharing your private keys.

Protecting Your Investments

Beyond the technical aspects, legal knowledge is also crucial. Knowing how to report scams and understanding the legal measures you can take to possibly recover your funds can act as a deterrent to potential scammers. Engaging with platforms that have robust security measures and active community involvement can also provide an additional layer of security

Case Studies

Several high-profile DeFi scams have made headlines in 2024, serving as stark reminders of the risks involved. These case studies not only shed light on the methods used by scammers but also highlight effective community responses that helped mitigate the damage.

Conclusion

As the DeFi sector continues to grow, the ingenuity of scammers grows with it. Staying informed and cautious is your best defense against becoming a victim. Regularly updating your knowledge about the latest security practices and scam tactics will help safeguard your investments in this dynamic and promising field.

Have You Been Scammed? We Can Help!

Do not lose hope if you have been deceived by a forex scam. Capx Recovery specializes in helping individuals recover their funds from fraudulent brokers. Our team of experts is dedicated to ensuring justice and financial recovery for our clients.

Contact us today to start the process of getting your money back and securing your financial future.

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Did you know that 20% of individuals believe that their romantic partner could install cyberstalking programs on their phones? This statistic highlights the prevalence of internet stalkers, a type of cybercriminals.

Learning about what cyberstalking is, its consequences, the laws in place to protect victims, and how to safeguard yourself from a cyberstalker becomes essential.

What is Cyberstalking?

Cyberstalking is a form of cyber harassment where a cybercriminal uses electronic communication, such as email or direct messaging, to intimidate, scare, or threaten someone with physical harm. This behavior can take various forms and can have extreme consequences for the victims, such as:

• Blackmailing someone by using their personal information or photos
• Sending a virus to someone’s devices to destroy or manipulate incriminating data
• Monitoring someone’s online activity or physical location
• Stealing a person’s identity for financial gains
• Sending death threats or other overt threats of violence to someone
• Doxxing is the act of publishing a victim’s private information online
• Cyberbullying someone by posting degrading statements about them publicly
• Posing as a victim online to cause harm to someone’s life or career
• Threatening with doctored photos or deepfakes of the victim or their family

Consequences of Cyberstalking

Cyberstalking can have devastating consequences for its victims, extending far beyond the digital realm and impacting various aspects of their lives. Emotionally, victims often experience profound distress, including fear, anxiety, and a sense of helplessness. The constant threat of being monitored or harassed online can lead to a pervasive feeling of vulnerability, affecting their overall mental well-being and quality of life.

Physically, the stress and anxiety resulting from having internet stalkers can manifest in varying physical symptoms, such as headaches, insomnia, and digestive issues. Victims may also experience a decline in their physical health due to the ongoing psychological strain of being targeted and the disruption of their normal routines.

Socially, cyberstalking can isolate victims from their support networks and communities. Fearing judgment or further harassment, victims may withdraw from social settings, both online and offline, leading to increased feelings of loneliness and alienation. This social isolation can further exacerbate the emotional toll of cyberstalking and make it more difficult for victims to seek help or support.

In addition to the personal consequences, having cyberstalkers can also have practical implications for victims’ daily lives. They may feel compelled to change their online behavior, limit their use of social media, or even avoid certain places or activities in an effort to evade their harassers. This disruption of their routines and activities can impact their work, education, and relationships, creating additional stress and uncertainty.

Furthermore, cyberstalking can pose a direct threat to victims’ safety and security. In some cases, stalkers may escalate their behavior to real-life threats or acts of violence, putting victims and their loved ones at risk. Victims may live in constant fear for their physical safety, requiring them to take measures such as seeking legal protection or relocating to a safer environment.

Overall, the consequences of cyberstalking are profound and multifaceted, affecting victims’ mental, emotional, physical, social, and practical well-being. It is necessary for victims to seek support from trusted individuals, mental health professionals, and law enforcement agencies to address the harm caused by internet stalking and to take steps to protect themselves from further victimization.

Cyberstalking Laws

In the United States, cyberstalking is illegal, but there are limited federal protections in place. Some of the existing federal laws include:

• The Combat Online Predators Act increased the maximum prison sentence for those who stalk minors online.
• Title 18 is an anti-stalking law that prohibits various forms of stalking, including using electronics to cause harm or distress.
• The Violence Against Women Act (VAWA) strives to protect women from violence and harassment, with new prevention and prosecution measures added in 2022.

Many laws protecting citizens from internet stalking are at the state level, so it’s important to contact your local law enforcement agency if you’re unsure of your rights. The VAWA also established the National Resource Center on Cyber Crimes Against Individuals to enhance protections for victims of cybercrime and to provide training for investigators and law enforcement personnel in dealing with these types of crimes.

Tips to Protect Yourself Against Cyberstalking

To prevent cyberstalking, it is crucial to take proactive measures to protect your personal information. Follow these essential tips to enhance your online privacy:

1. Adjust Privacy Settings:

• Review and improve the privacy settings on your social media accounts.
• Set your posts to be visible to “friends only” to limit access to people you know.
• Avoid publicly sharing your address or phone number, and consider using a separate email ID for social media purposes.
• When sharing private information with friends, use private messages instead of public posts.
• Consider using a gender-neutral screen name or pseudonym instead of your real name on social media.
• Leave optional fields, such as your date of birth, blank on social media profiles.
• Only accept friend requests from individuals you have met in person, and adjust your settings to accept requests only from friends of friends.
• Disable geolocation settings and, if necessary, turn off GPS on your phone.
• Remove personal data from the web, especially if it’s outside your social media accounts. Contact third-party websites to request data removal and consider using a post box or office address instead of your home address for certain purposes.

2. Exercise Caution with Personal Information:

• If using online dating services, avoid providing your full ID or personal information over email. Only share your phone number with individuals you have met in person and trust.
• Beware of phone calls or emails requesting personal details. Always confirm the legitimacy of the request before providing any information.

3. Secure Your Devices:

• Protect your smartphone and PC from hacking attempts by implementing basic security measures.
• Exercise vigilance when using public Wi-Fi and consider employing a Virtual Private Network (VPN) for additional security.
• Use strong and regularly updated passwords for your devices and accounts.
• Be mindful of where you leave your smartphone to prevent unauthorized access.
• Use anti-spyware software to detect and eliminate any malicious software from your devices.
• Always remember to log out of your accounts when you are done using them, and avoid installing apps that request access to your contact lists without a clear purpose.

How do I Recognize & Report Cyberstalking?

Recognizing cyberstalking is important for your safety. Here are some signs to watch out for:

• Do you suspect that someone is tracking your location using GPS or another system?
• Are you receiving unwanted, frightening, or obscene email IDs or text messages?
• Have you found evidence of someone using spyware, cameras, or listening gadgets to monitor you?
• Is an individual harassing or threatening you on the internet, social media, or your cell phone?
• Is someone deliberately making social media posts or spreading rumors to embarrass you?
• Is someone monitoring your internet and computer usage?

Cyberstalkers may be people you know, such as a former spouse or partner or even strangers. While victims are often women, men can also be targets of cyberstalking.

If you witness cyber harassment or receive threats, you must report it to the police immediately. Many police departments have specialized units to handle cyber crimes and internet scams. Before contacting the authorities, consider taking these steps:

• Scan your devices for spyware or other malware.
• Save any messages or images that prove the harassment.
• Keep a record of the dates and times you received the messages.
• Report the cyberstalker if the situation escalates or if you feel your safety is at risk.

The Federal Bureau of Investigation (FBI) operates the Internet Crime Complaint Center (IC3). In addition to reaching out to your local police, you can report a complaint online to report internet stalking and other cybercrimes to the FBI.

If you’re concerned about your safety, seek help using a public computer or somebody else’s device to prevent the internet stalker from interfering with your efforts to report them.

Stopping Cyberstalkers in their Tracks

It is more effective to prevent cyberstalking than to handle the aftermath. It’s important to be prepared for online stalking before it occurs. Take proactive steps to protect yourself from cyberstalkers, such as:

• Cease communication: Inform the individual to stop reaching out to you. If they persist, block them on social media and contact their internet service provider. Cyberstalking on social media is widespread, so Facebook, Instagram, Twitter, and almost every other social media platform offer tools to block electronic harassment. If the cyber harassment comes through email, establish a filter to redirect their emails to a spam folder. Moreover, block any unwanted online messages.
• Review your security: You can never be certain of a cyberstalker’s true motives or the lengths to which they will go to stalk you. Conduct a comprehensive security check of your online accounts and devices to prevent cyberstalking. Use an anti-spyware tool to ensure that suspicious apps are not on your phone and create strong passwords for your online accounts. If an internet stalker installs spyware on your iPhone or Android, remove it immediately.

• Keep evidence: If you suspect that you are being stalked online, gather evidence to report to the police. Even if it appears that your cyberstalker has vanished, it’s crucial to document the abuse. Capture screenshots of the messages they’ve sent you, including timestamps, and save them in case you need to refer to them later. If you need to report internet stalking, having evidence to support your claim is important.
• Use fake profiles as a decoy: If someone is cyberstalking you, you can attempt to mislead the perpetrator by introducing more false information about yourself. Create a decoy account on the platform they are familiar with and establish an anonymous, authentic-looking profile to help protect yourself.
• Report cyberstalking to the police: Many police departments have a specialized cyberstalking unit and are knowledgeable about how to report online stalking. Even if you don’t have enough evidence to warrant prosecution for stalking, filing a report will document the incident, and the police can assist you in handling future attacks.

FAQs About Cyberstalking

If you are still unsure about “what cyberstalking is?” or “what is an internet stalker?”, the following commonly asked questions will help you relax and clear up any confusion you may have.

Many individuals commonly refer to the term “stalking” when describing the act of closely monitoring someone’s online presence, such as their social media activities, and delving extensively into their profiles in a manner that goes beyond casual interest. However, it’s important to note that keeping tabs on an ex-partner or browsing through a friend’s social media likes is not inherently illegal, as long as these actions do not amount to cyber harassment or other criminal behavior.

Yes, cyberstalking is a crime in many jurisdictions involving the use of electronic communication to harass or threaten individuals. It includes behaviors such as unwanted contact, monitoring or tracking, impersonation, online surveillance, threats, and intimidation.

Online stalking laws vary by country and region, with penalties ranging from fines to imprisonment. It’s important for individuals to be aware of their rights and legal protections and to report instances of internet stalking to the appropriate authorities for investigation and prosecution.

Cyberstalking is a dangerous form of cyber harassment that can have severe consequences for victims. It involves harassment, intimidation, and intrusion into the victim’s personal life using digital platforms and technology. Internet stalking can cause emotional distress, anxiety, and fear for one’s safety, leading to feelings of helplessness and isolation. It can escalate to real-life stalking or physical violence, posing a serious threat to the victim’s safety and well-being. Victims may need to alter their online behavior or contact information to escape the cyber harassment, disrupting their social connections and overall sense of security. Moreover, a lot of internet scams begin this way. It is crucial to raise awareness, implement legal frameworks, provide support services for victims, and promote digital literacy to prevent and address cyberstalking.

Cyberstalking and cyberbullying are two related digital phenomena involving harassment, intimidation, or harm. Cyberbullying often occurs among young people and involves repeated acts of harassment, humiliation, or exclusion through social media or messaging apps. Cyberstalking, on the other hand, involves deliberate and persistent targeting of an individual with unwanted attention, threats, or surveillance. Both highlight the need for proactive measures to prevent and address online harassment.

Home - Crypto

Cryptocurrency forensics is both a science and an art. It requires meticulously looking at the data presented, analyzing, evaluating, and then initiating steps to uncover and recover crypto assets from crypto wallets that were used in the scam. They assist law enforcement in tracking down unlawful money, building a complete case on behalf of victims, and bringing culprits to justice.

It is the need of the hour to investigate and analyze blockchain transactions to uncover, compile the data, and organize the entire events leading to the fraudulent activity. Scammers are known to launder money in the form of cryptos by frequently changing their crypto wallets. Besides laundering cryptos, these con artists also engage in hacking, online fraudulent activity, and simply stealing cryptos and NFTs from their potential victims. And this is where crypto crime investigation plays a vital role.

The Widespread Of Crypto Crimes

In recent years, there has been a boom in the crypto adoption rate. During the pandemic period, many witnessed that during the economic hardship, it was the crypto market that prevailed, while the rest of the traditional economic market collapsed. This situation further fueled the adoption rate of cryptomania.

Cryptocurrencies can be classified into payment currencies, tokens, stablecoins, and central bank digital currencies. Such a boom in the crypto market and the ever-increasing dependency on digital transactions make it crucial to safeguard these financial assets.

Each crypto transaction offers pseudo-anonymous peer-to-peer transactions. These transactions are immutable; once a transaction is initiated, it cannot be reversed. Scammers make use of this loophole and target their potential victims. The daily crypto volume ranges in billions; thus, it is necessary to protect the asset class.

As per reports, compared to 2022, the total amount of money lost was in the tune of $4.2 billion, and another $40 billion was lost due to the collapse of Terra, Celsius, and FTX; roughly $2 billion was lost in 2023. These numbers are bound to be higher as many are clueless while reporting a crypto scam, while a small portion avoids reporting as they do not wish to be stigmatized by their close ones.

Given the current economic hardships, many are living from paycheck to paycheck. Many are also finding it challenging to continue living their lifestyle and are forced to downgrade it. They are ready to invest in cryptos as an alternate source of income. However, they lack the necessary awareness and knowledge while investing in the crypto market. Thus, these are the exact people who are on scammers’ radar.

Scammers take advantage of these desperate people who wish to upgrade their lifestyles. Since many are living paycheck to paycheck, their credit score is low, making it challenging to get a loan at a cheaper interest rate.

Con artists understand that they can rip off those who are willing to change their lifestyle. Thus, they attract these potential victims through a web of lies and offer the wrong financial advice, which further destroys their credit scores. Many are encouraged to take the money from their emergency funds, like college tuition fees and mortgage funds, and even give up their retirement funds only to invest in shady investment opportunities.

Challenges Of Cryptocurrency Forensics

Although it is far easier to launder money using fiat money compared to cryptocurrency, the FBI admits that some loopholes are exploited by scammers, which makes it challenging for law enforcement agencies to apprehend these criminals. This is where  crypto forensic experts come into the picture

• Lack of information about entities trying to get around the requirements of the US Bank Secrecy Act
• A lack of knowledge about other criminal groups is probably leading them to turn to crypto-related crimes.
• Criminal entities may engage in crypto services like tumblers and mixers, a process where coins are mixed, making it challenging to track original crypto.
• Using privacy-enhancing technologies.
• Freely flowing borderless transactions may cause jurisdiction challenges.
• Limited and ambiguous regulations may cause challenges.
• Evolving technology may further enhance privacy, making it challenging to track down original cryptos.

Malevolent Cryptocurrency Activities That Require Crypto Forensics

It seems that scammers are always one step ahead of law enforcement agencies. They quickly understand the technology and adapt it to their nefarious agenda. As technology evolves, these charlatans will quickly adapt the current available technology to scams. Due to their creative and innovative nature while pulling off a scam, the Boys in the Blue face challenging tasks ahead of them while apprehending the criminal tendency group involved in the scam.

Thus, there is a need for a crypto crime investigation to uncover these online scams and help prevent monetary losses that are to the tune of billions. These cybercriminals entice their potential victims through various methods, including:

Online Scams and Frauds

The chances of you finding potential online scams are high compared to genuine business opportunities. The sheer number of these scammers online makes it next to impossible for crypto regulators and the government to keep an eye on them. These scams include fake job guarantees and romance scams, and in all these scams, victims are left with poor financial health. Falling for an online scam only guarantees regret and misery, as it takes years to clear a messed-up credit score due to these fraudulent activities.

Dark Web Menace

It is surprising what one can find on the dark web. As the name suggests, one can buy an illegal drug consignment of unauthorized weapons delivered to their doorsteps. It is challenging to enter the dark web since it is also riddled with scammers. There is a high chance that you may select a product and buy it only to discover that it will never reach your doorstep.

The dark web is quite popular with scammers, and cryptos are the main source of transactions. From the complete data of identity theft to counterfeit fiat currencies, all can be traded within this dark web.

Ransomware

Another popular way for scammers to rip off their potential victims is to take control of their electronic devices, like smartphones and computers. These cybercriminals will prompt their potential victims to download malicious software through random emails, texts, messages, and so forth. Once the potential victim clicks on the link in the body of the message, malicious software gets downloaded and gives control to the scammer involved.

Once the controls are in the hands of scammers, they will ask for ransom. While their victims arrange for the ransom amount, these scammers will download all the sensitive details of their victims so that they can strike them again in the future through identity theft.

Cyber Attack

Crypto exchanges and crypto user wallets are always under threat of cyberattacks. These hackers not only attack big crypto exchanges, but they also target individual crypto wallets. Once they succeed, they ensure that the majority of cryptos are in their possession, leaving the exchanges and individual crypto users in financial disarray.

Terror Financing

In recent years, terrorists have understood the importance of borderless transactions offered by cryptocurrencies. They have smartly used this feature to their advantage. They can now launder money in huge amounts from one place to another using cryptocurrency; thus, it is quite challenging for the FBI to track all the crypto transactions carried out in bulk.

Money Laundering

It becomes easier for anyone to convert their black money into white money, as cryptos are notorious for their highly volatile nature. Thus, these antisocial elements invest and trade in cryptos, and it becomes increasingly challenging for the FBI to track all the illicit wealth that is used to promote illegal and criminal activities.

Thus, it is quite critical from society’s point of view to track down these stolen digital assets and bring the perpetrators to justice, and this is where crypto investigations come into play. With their assistance, law enforcement authorities may bring fraudsters, hackers, and other criminals to justice.

How Does Crypto Forensics Work?

Many are confused and ask, What are crypto scam investigations? We will shed light on how we operate and deal with the challenges that we face while investigating a crypto scam.

As we have mentioned, crypto forensics is both a science and an art. The science part deals with meticulously tracking down the stolen crypto assets using state-of-the-art technology while skillfully navigating through international financial rules and regulations and negotiating with third parties for the recovery of stolen crypto assets.

A crypto-forensic expert is impartial while pursuing the case and producing objective data. These experts do not engage in discriminating against anyone but rather work to collect all the data that will aid law enforcement agencies in their further investigation. The pieces of evidence gathered aid these law enforcement officers in bringing the involved con artists to justice.

While pursuing crypto fraud, cyber forensic experts follow certain methodologies to track down stolen crypto assets.

Pattern Analysis

Experts analyze activity patterns in blockchain; such analysis helps them identify suspicious transactions and, with the help of specialized tools, map them out.

Address Clusters

By observing the transaction patterns, experts can determine specific relationships between the wallet addresses. They can determine if it is the same individual or a group of individuals. It is a critical step as it allows investigators to understand the number of players in the scam.

Using Algorithms

Crypto forensic experts make use of advanced mental shortcuts and clustered algorithms, connecting dots that create the entire scenario of the crime. It helps better understand how the fraudulent activity was carried out.

Transaction History

Once the suspicious wallet has been identified, its transaction history is carefully studied. Experts collect all the data regarding the to-and-fro flow of funds in the suspicious wallet. This creates the necessary link when the wallet is used to steal crypto assets and launder them to another wallet address.

Transaction Tracing

All cryptocurrency transactions are registered like a ledger in the blockchain. It becomes easier for the experts to have a look at these blocks to understand the transaction records of suspicious wallet addresses. This helps law enforcement officers freeze and recover crypto assets that are illegally held.

Crypto Exchange

Cryptocurrency exchanges play an important role as they are authorized to confirm crypto users through KYC regulation. If the crypto user is a scammer, then law enforcement officers, through legal approval, can issue subpoenas, allowing them to investigate the crypto wallet in question. Based on the findings, the law enforcement officer can take further action against the suspected crypto user.

Attribution data

The most amazing operation crypto-forensic specialists can perform is connecting real-world identities to digital wallets. Accurate attribution data is critical to apprehending online perpetrators and perhaps retrieving any crypto funds they have stolen.

Active Capture

Honeypots are crypto wallets, tokens, or smart contracts that act as bait for con artists. Crypto investigators will use them as a lure, hoping for these charlatans to take the bait. Once they fall for it, these crypto investigators can use the information later to identify other transaction patterns.

OSINT

Open-source intelligence, or OSINT, involves the analysis of the data that is out there for the public to view. This publicly available data is used to link real-world entities to suspicious crypto wallets and transactions. These datasets are available on social media platforms, messaging platforms, forums, and public databases.

Cryptocurrency forensics is evolving at a faster pace, as they need to stay one step ahead of the cybercriminals, who are using their creativity and innovation to use the technology for nefarious purposes.

Future Of Cryptocurrency Forensic

Since its inception, cryptocurrency forensics has been trying to close the gap between cryptocurrency and crime. In recent years, this gap has become narrower and narrower as crypto cyber experts team up with law enforcement agencies to bring down crypto crime rates.

Law enforcement officers are relying more on these crypto cyber experts to expose scammers behind the scam and book them under the law.

As time progresses, the tools used by cyber forensic specialists are evolving, and their methodologies are also being refined, enhancing their accuracy and reliability. Thus, the emphasis on the accuracy of attribution data is considered essential for effective investigations and asset recovery.

At CapX Recovery, we understand the importance of crypto crime investigation using state-of-the-art hardware and software to track down the stolen crypto assets of the victims of an online scam. To ensure and enhance our quest to recover the stolen crypto assets and bring the scammers involved to justice, we follow:

• To meet the highest standards of data quality and reliability, we continuously refine our tools and methodologies.
• Strengthening partnerships and initiatives by emphasizing data verification, using cutting-edge technology, and encouraging cross-sector collaboration.
• Expand our investigative potential by encompassing a broad range of data sources and resources and providing an integrated strategy for each case.
• To create effective and efficient experts across the industry, providing both depth and breadth of knowledge to our crypto forensics team.
• Our team of specialists prioritizes integrity by validating our investigation findings while simultaneously ensuring every piece of information we provide strengthens reliability that can withstand rigorous legal scrutiny.
• Investing in long-term, creative solutions that improve the area of cryptocurrency forensics while also protecting the interests of our clients and the general public.

Adhering to and upholding these core values and beliefs not only helps us to maintain the highest industrial standards but also prepares the groundwork for future breakthroughs and legal accomplishments in the digital asset field.

While combating crypto crime, crypto intelligence, tracing, tracking, and forensics are indispensable tools. Such tools not only ensure the financial security of law-abiding crypto users but also help crack crime.

As technology advances, there is an ongoing conflict between those who commit crime and those who oppose it. It is a war that can prove costly if lost. Thus, at CapX Recovery, we share with our professionals the opportunity to study new technologies while also improving their knowledge and abilities, resulting in the sharpest tools in the box.

If you or someone you know has unfortunately fallen victim to an online crypto scam, then contact us at Capx Recovery. Our experts would be more than happy to help, advise, and guide you to recover your lost crypto assets.

Home - Crypto

For many, cryptocurrency is the future, and society will eventually adopt and run on cashless transactions. With current economic chaos and uncertainty, many have turned their attention and have started to adopt cryptocurrencies.

There are more than 13,000 cryptocurrencies in circulation. These cryptos are classified into four major categories: payment currencies, tokens, stablecoins, and central bank digital currencies. They run on a decentralized network backed by blockchain technology. As a result, experts in cryptocurrency fraud investigations are required to differentiate genuine crypto from bogus ones.

Although there are several cryptos in the crypto market, many still prefer investing and trading in the first ever crypto to be created, Bitcoin, also referred to as crypto gold by many. It has the largest market cap, and as the fourth halving is approaching, there is a Bitcoin frenzy of buying. Many investors are ‘hodling’ or holding in crypto terminology.

As the Bitcoin price appreciates, the crypto market also appreciates due to its large market capitalization. Thus, besides buying and hodling on to Bitcoins, many are also diversifying into different cryptos. As the crypto buying fever is rampant, the chances of many falling victim to online crypto scams are high.

As per research, more than $39.6 billion was lost in cyberattacks in 2022 alone, compared to $23.2 billion in 2021. Surprisingly, these figures were $24.2 billion in 2023. Since VidiLook and Chia Tai exited the market, they were major contributing factors to the crypto scam. Thus, their exit had a profound impact on the amount lost in the crypto scams.*

Regardless, these are just the official figures, and they are bound to be greater as many shun away to report to the authorities regarding the crypto scam due to shame and guilt.

Contrary to the belief that cryptos lost in a scam cannot be recovered, this is completely wrong. Cryptos can be recovered; however, due to poor crypto regulation, many scammers and hackers continue to exploit the legal loopholes and stay away from the law.

In the absence of regulation, scammers are out there to rip off their potential victims; thus, it becomes necessary to at least secure their financial interests. As we have already seen from the above graph, these cryptocurrency crimes are increasing annually.

Thus, it becomes important to recover and return stolen crypto assets to their rightful owners through crypto investigations.

Cryptocurrency & It’s Sensitivity Explained

Although most are aware that a cryptocurrency is a digital currency, many are still confused and often ask, “What is a cryptocurrency?” Cryptocurrency is more than just digital currency. Crypto was conceptualized in 2007–08, during the last global recession.

Bitcoin, one of the first cryptocurrencies, was created with the single purpose of stopping corruption by making each coin accountable by minting it to a maximum of 21 million. Although bitcoins are mined through a mining rig rather than minting them, new Bitcoins are given as a reward to Bitcoin miners after authenticating and validating a crypto transaction. Each transaction is a complicated mathematical puzzle, and upon solving it, a new Bitcoin is mined.

Bitcoin was created with the sole aim of replacing centralized authorities like the central bank with a decentralized network called the nodes. These nodes are responsible for authenticating and validating each transaction.

When a transaction is authenticated, validated, and complete, it gets recorded on the blockchain technology across the nodes around the world. Since each transaction is recorded and spread across the globe, it is next to impossible to manipulate any transaction, thus ensuring transparency.

Crypto users have two keys with them when they create an account. These keys are similar to email addresses. One of the keys is called the private key, through which cryptos are sent, and the other is called the public key, which is used to receive cryptos. Both keys are made up of alphanumeric characters, thus ensuring anonymity when they buy, sell, or trade cryptos with other crypto users.

Types of Cryptocurrency Scams

There are several types of cryptocurrency scams, and falling victim to one of them is quite common. However, if you approach each business opportunity that involves cryptocurrency with skepticism, you are sure to avoid becoming a victim of a potential scam.

Investment Scam

As per crypto investigations, one of the most common online crypto scams is the investment scam. Scammers will entice their victims by ensuring a fake promise of making a huge amount of wealth by investing in bogus cryptos. These charlatans will lure in their potential victims by promising them unrealistic returns on their investments.

They will also entice them through Ponzi schemes and pyramid schemes by providing fake incentives only to encourage them to recruit more and more. When these schemes collapse since they cannot be sustained for a longer period, the victims involved not only lose their hard-earned wealth but also endanger their relationships with their family and friends.

Initial Coin Offering

It is a common practice in the crypto world to crowdfund a cryptocurrency. Creating a cryptocurrency involves a significant amount of resources, namely money. Scammers are well aware of and take advantage of such situations.

To attract crypto users through crowdfunding to create a fake cryptocurrency, they publish a fake white paper. Once this paper is released to the general population, most crypto enthusiasts will start to invest in the project.

Once a sufficient amount of money is collected, they run away without a trace.

Managed accounts

Not everyone is cut for trading, especially in the crypto market, where the price of crypto assets fluctuates more than 1000X within a short span of time. The crypto market disregards all the laws of economics except for the law of supply and demand. Thus, it is common practice for a broker to manage the accounts of their clients. While managing these accounts, brokers will ensure the financial interests of their clients.

Con artists impersonating financial brokers will always keep their financial interests before their clients. They will offer services like stock, forex, and crypto markets. But they all end up as stock scams, forex scams, and crypto scams. They will indiscriminately trade, disregarding whether the client is making a profit or a loss.

Crypto Exchanges, Brokers, or Brokerage Firms

According to crypto investigations, it has been observed that scammers will offer unrealistic returns for staking cryptos on their trading platforms. These bogus trading platforms are poorly managed and will misappropriate funds that have been pooled through their clients. These firms are elaborate Ponzi schemes and have been doomed since the start.

Such enterprises go bankrupt with their top management untouched by the law. At the end of the day, their clients are the ones to suffer financial loss, while these top management entities run away with the money.

Signal Trading and Insiders Tip

Scammers will frequently announce that they have a good tip that will turn the fortunes of their clients. They provide them with trading tips under the guise of an insider tip. In reality, it is a substandard research-based strategy that anyone can create with good experience trading in cryptos. Scammers sell these tips at a premium, and there is no guarantee that these so-called tips are reliable.

Trading bots

Trading bots are software programs that are created to execute trades that minimize losses while maximizing profit potential. A lot of time, effort, and money are spent to create these complicated applications that execute trades based on historical performance. These bots are field-tested and provide a more than 70% success rate.

According to crypto investigations, scammers provide a bogus crypto trading bot that is not field tested, and the win-to-loss ratio is atrocious. They provide their bogus bots at a competitive price. Using these substandard bots will only result in losses.

Romance Scam

Another way that these charlatans prey on their potential victims is through romance. These con artists will create a fake, attractive profile that can fool anyone. They will possess the above-mentioned attractive personality that has the sole aim of making a difference in the world and making it a better place to live.

No matter how they lure in their potential prey, they all end up in different ways. First, they will ask for money frequently in one way or another, and second, they will lure in the above-mentioned investment scams.

Social Media Scams

Con artists are known for their sweet talk to entice their potential victims through a web of lies. Once trapped, they will then start to bleed financially. As per cryptocurrency fraud investigations, it has been revealed that online celebrities will often influence their fanbase to promote certain obscure cryptos and lead them into financial insecurities.

Scammers are known to use rug-pull and pump-and-dump schemes to make quick money at the expense of their audience and fan base. They will first buy an obscure cryptocurrency in bulk and promote it on their social media platforms. Their audience will follow their lead and start to invest in those cryptos.

Once the price of the crypto has artificially inflated, and after appreciating a predetermined price, these charlatans will start to sell off those cryptos. While these scammers make money, their audience is left with worthless cryptos.

Understanding the Role of Cryptocurrency Investigators

The cryptocurrency investigations team plays an important role in the crypto world. Acting like detectives, they track down the stolen crypto to the last penny. At Capx Recovery, our team of dedicated and diligent cryptocurrency investigators is out to safeguard the financial interests of the victims who have fallen prey to online cryptocurrency scams.

The role of such crypto detectives is becoming increasingly important as the popularity and adoption rate of cryptocurrencies are becoming more mainstream. Thus, possessing a unique blend of technical knowledge, investigative skills, and cyber forensic analysis is vital in combating the ever-increasing number of these crypto scams.

Our experts in cryptocurrency fraud investigations employ both open-source intelligence methods and closed-source tools that include licensed government-grade software that helps compile vital data that is essential to constructing a comprehensive case on behalf of our clients.

As scammers involved in the scam leave behind digital footprints, it is up to our crypto recovery specialist to recognize and follow them using data that is publicly available, like social media profiles, forum posts, proprietary databases, and advanced analytical tools.

We have a vision and mission statement that encompasses empowering the victims of online scams by returning lost crypto assets, including non-fungible tokens, or NFTs, to their rightful owners by delivering unparalleled expertise and cutting-edge solutions.

Our cyber forensics will leave no stone unturned and gather all the important details, even those that victims may not consider. We assure the safety and confidentiality of the data provided by the victim throughout the recovery process and beyond. Thus, the data gathered and entrusted to us by victims of online scams is safe and secure.

As a cryptocurrency detective, our team possesses a vast amount of experience and expertise that are crucial to tracking down stolen cryptos from the victim’s wallet to the scammer’s wallet. The task is challenging since scammers frequently change their wallets.

Our experts, armed with state-of-the-art software and hardware and in-depth knowledge of the international financial system, with their technical skills and investigative mindset, are able to uncover the exact wallet where scammers have hidden their victims’ stolen crypto assets.

Once victims of an internet scam contact us and give us the authority to work on their investigation, our experts will first gather all the information, right from the onset of the scam to the point where victims realize they were scammed.

Our experts in cryptocurrency fraud investigations will create a strategy unique to each individual that maximizes the recovery process of crypto assets based on the information provided by victims. They will also engage and negotiate with third parties, such as cryptocurrency exchanges.

When every action is carefully thought out, our experts execute the plan of action. While recovering, our experts honor international financial boundaries and work within the legal framework. After negotiating with the third parties involved, our crypto recovery specialist will initiate and maximize the recovery process.

Our experts will also create a strong case that will allow these victims to hold scammers accountable in the courts of law.

6 Tips to Identify and Avoid Crypto Scams

One of the common questions that many victims of an online scam face is ”What to do when you’re scammed?” You can easily avoid these dilemmas if you keep your eyes open, especially when a business opportunity comes along.

• Offering a once-in-a-lifetime opportunity or providing unrealistic returns on investments.
• The business opportunity offers low risk with unlimited profit potential.
• You are required to submit sensitive details to the business that you would generally avoid sharing with your close ones.
• The business model revolves around how much money you will make instead of how the funds will be allocated to the business.
• You are encouraged to reinvest in the business and discouraged from withdrawing from your account.
• There are irregularities while receiving the promised amount of money.

Crypto Scam Investigation Process

With the rampant online crypto scams in our society, there is a need to protect the financial interests of crypto users who only wish to create wealth and increase it by investing and trading in the crypto market. We at Capx Recovery have taken this responsibility on our shoulders. Although there are huge challenges ahead, it is not impossible for our dedicated and diligent crypto asset recovery specialists.

Our cryptocurrency fraud investigations team will gather all the information from victims caught in an online crypto scam. They will probe the minute details that victims may not consider to be evidence. After gathering all the information, they will provide a realistic crypto asset recovery plan.

Once these victims give us the authority to pursue their case, our crypto asset recovery specialist will meticulously try to track down the stolen crypto assets. For this, they will use the details provided by the victim of the scam.

Our experts will go through social media platforms and other public platforms to hunt for scammers. Once these scammers have been located, the next phase of the investigation begins. Since these con artists have the habit of moving stolen cryptos from one wallet to another, our team will hunt for the stolen cryptos.

Once all the cryptos are located, our experts then begin the negotiation phase, where they will interact with the crypto exchange and tell them about the scam. When the talks are over, these exchanges give the go-ahead to freeze the scammers’ accounts, help our experts recover the stolen crypto assets from them, and hand them over to their rightful owners.

Conclusion

As we are slowly but surely moving from a paperless environment to a digital currency one, we must take extra care to safeguard our financial interests. Relying on the government to recover assets is indeed a good idea; however, their resources are thinly stretched, and the number of scammers online is large. Thus, it becomes necessary for us as individuals to depend on crypto asset recovery specialists like Capx Recovery.

One of the most important advantages is that we have a team of cryptocurrency fraud investigations that can work on the recovery of stolen crypto assets at an individual level. Thus, it becomes easier to pursue crypto scams at an individual level, and the results are fast.

Frequently Asked Questions About Crypto Scam Investigations

Cryptocurrencies are digital tokens for online payments that are independent of government or financial institutions. Bitcoin and Ether are two of the most widely recognized and utilized cryptocurrencies.

The term “cryptocurrency” comes from using encryption to verify transactions. This process involves complex coding to store and transfer crypto data between wallets and public ledgers. Encryption ensures the security and safety of these transactions.

These are fungible, meaning they have a consistent value when buying, selling, or trading. This sets them apart from non-fungible tokens (NFTs) with varying values. Unlike crypto with fixed values, NFTs’ value changes based on the digital asset they represent.

The crypto market is active because of speculation, not because people are adopting a new payment system. Speculation caused significant fluctuations in prices. For example, in late 2021, the value of Bitcoin surged to almost $70,000, but it dropped to around $35,000 in early 2022.

Other cryptocurrencies, like Ether, also experience similar changes. The growing popularity of it has led to more logical work to solve complex codes, improving security.

How Does Cryptocurrency Work?

Crypto coins or tokens are digital currencies on a decentralized public ledger called a blockchain. Currency holders maintain this ledger and keep a comprehensive record of all transactions. Users can buy cryptocurrencies from brokers and store them in cryptographic wallets for transactions and safekeeping. Owning cryptocurrency doesn’t mean you have anything physical, which is important to note.

When someone wants to transfer their crypto assets, the network combines their transaction with others into a block. Subsequently, this block converts into a cryptographic cipher.

Miners compete to decipher the code and add the new block to the blockchain. Once the network verifies the new block, it adds it to the end of the blockchain, confirming the original transaction. We must process six blocks of transactions to ensure successful transactions, which takes time.

Cryptocurrencies and blockchain applications are still developing in the financial industry, even though Bitcoin has been around since 2009. Blockchain technology can potentially transform how financial assets like bonds and stocks are transacted.

What Is A Crypto Scam?

Financial frauds are regrettable, and the realm of cryptocurrency is not immune. Crypto scams imitate the methods of financial criminals. They try to steal money from bank accounts or make unauthorized charges on credit cards.

Similar to conventional financial scams, crypto coin scammers employ various techniques to snatch cryptocurrency. To safeguard your crypto holdings, it’s crucial to be aware of potential threats and comprehend the strategies employed. Act accordingly if you have suspicions about any fraudulent cryptocurrency-related communications or activities.

Different Types Of Cryptocurrency Scams

Though a relatively new trend, thieves resort to old cryptocurrency-stealing techniques. To protect yourself, it’s important to be aware of common crypto coin scams:

Investment Scams

Be cautious of scammers who pose as knowledgeable “investment managers” and offer Bitcoin investment deals. These fraudsters can trick you into giving them money and disappear with your funds.

These scammers claim to have invested millions in cryptocurrency and promise high returns, but it’s a lie. They demand an upfront fee and then disappear with the money. They may also ask for personal information while transferring funds, which can lead to unauthorized access to your cryptocurrency.

Another type of investment scam involves fake celebrity endorsements. Scammers trick others into investing in their fraud schemes by creating fake accounts, ads, or articles containing real celebrity images. These scammers use celebrities’ images to deceive people. They use reputable company names like ABC or CBS and professional-looking websites to make their scams seem legitimate.

NFT Scams & Investments

Rug pull scams are fraudulent investment schemes scammers use to attract investors with promises of high returns. They do this by falsely inflating the popularity of a new project, non-fungible token (NFT), or coin. They disappear once they get the funds, leaving investors with worthless holdings. You can’t sell the acquired bitcoin because of the coding of these investments, making it a useless investment.

One example of this scam is the Squid coin scam, based on the popular Netflix series Squid Game. This scam involved playing games online to earn crypto. Participants purchased tokens to play games and then exchanged the tokens for another crypto.

Squid tokens experienced a significant increase in value, skyrocketing from 1 cent to roughly $90 per token. But suddenly, trading stopped, and the funds vanished. The token’s value then dropped to zero, leaving investors unable to sell their tokens. The scammers made about $3 million from unsuspecting investors.

Rug pull scams are not just limited to crypto. They also extend to non-fungible tokens (NFTs), which are unique digital assets…

Romance Scams

Scammers often use dating apps to trick people into giving them crypto. They use a sneaky approach by pretending to be someone trustworthy, making the victim feel comfortable, and then asking for money. Once they receive the money, they disappear. Fraudsters often refer to this scam as the “pig butchering scam.”

Ponzi Schemes

Crypto scammers use Ponzi schemes where they pay older investors with the money they receive from new ones. To attract new investors, they use bitcoin as bait. These schemes revolve around targeting new investors for money.

However, there are no legitimate investments, and the main promise is huge profits with little risk. But there’s always a risk involved and no guaranteed returns.

Forex Trading Scams

Forex trading scams come in various forms, all with the same goal: to illegally acquire money from unsuspecting traders. Scammers use various tactics to cheat traders and investors.

It can include some companies tricking people into buying products that don’t work as promised. They might pretend to be famous traders or investors to get people’s personal information. They also create fake websites that look like real brokers to steal people’s deposits. These tactics are dishonest and often illegal.

Internet Scams

Fraudulent posts on social media platforms falsely offer Bitcoin giveaways. Be careful of fake Bitcoin giveaways on social media. Scammers use fake celebrity accounts to con people into clicking on a link that takes them to a fake website. The website asks for payment to confirm the account’s legality, but this is a ploy to steal money from the victim.

These fake websites also contain links that can steal personal information and cryptocurrency. Clicking these links may result in harmful software infecting your device and stealing your personal information. Information like your passwords, credit card numbers, and other sensitive data.

Before making any payments or giving away personal information, it’s important to research and verify the offer’s legality. By following these tips, you can protect yourself from becoming a victim of scams. Make sure to only provide information or make payments after you have confirmed the offer’s genuineness. Always be careful when clicking on links or responding to posts about Bitcoin giveaways on social media.

Other Scams

Cryptocurrency traders can use flash loans to make quick profits. Flash loans are short-term loans that allow traders to buy coins or tokens at a lower price on one platform and then sell them on another for a higher amount. Traders can repay the borrowed amount within the same transaction, making it a convenient option for them.

However, flash loans have some risks associated with them. Since they do not require collateral or credit checks, attackers can exploit this system by borrowing funds and manipulating prices on decentralized finance platforms. The attacker can create a false impression of heightened demand by orchestrating multiple buy-and-sell orders.

After inducing price increases, they cancel these orders, causing an immediate price decline. This way, the attacker can acquire the asset at a lower price on an alternative medium and profit from it.

How To Spot Crypto Scams?

Having the right knowledge makes it easy to identify crypto fraud. Genuine cryptocurrencies provide transparent information, including detailed disclosures about their blockchain and associated tokens.

Read The White Paper

Cryptocurrencies undergo a developmental phase where they release a white paper summarizing protocols, blockchain, and mathematical formulas. Legitimate cryptocurrencies produce a well-researched and well-written document, while fake ones lack clarity and details.

Identify The Developers

When considering investing in a cryptocurrency, reviewing the white paper to identify the individuals and developers involved in its creation is important. You can assess the coding, comments, and discussions on platforms like GitHub or GitLab, even if you don’t mention people. Furthermore, individuals frequently utilize forums and communication applications like Discord for project discussions. If any of these elements are missing, along with errors in the white paper, it may be a red flag indicating a likely scam.

Beware Of “Free” Items

Many crypto scams lure individuals with promises of free coins or claims of coin “drops” into wallets. Remember that everything comes with a price, particularly regarding money and crypto. Stay vigilant and skeptical of such offerings.

Analyze The Marketing

Before investing in any cryptocurrency, it is crucial to analyze its marketing strategies thoroughly. This will help you make an informed decision and avoid scams or fraudulent schemes.

Legitimate developers will provide clear documentation about the purpose of their cryptocurrency. Some businesses may use blockchain technology to offer services, and their advertising should be professional. However, scammers may use the tactic of hiring celebrities and pushing people to buy their cryptocurrency.

Protect Your Crypto Using Cold Storage

If you want to store your cryptocurrency assets, a few options are available. One option is hot storage, like web-based, mobile, or desktop wallets. However, cold storage is a more secure option.

A hardware crypto wallet is a device that helps you manage your cryptocurrency keys securely from home. Storing your digital assets offline and completely controlling them is a popular way to protect your financial investments. It allows you to keep your assets safe and secure.

Cautiously Approach Before Making Investments

If you’re considering investing, being aware of scams is important. Scammers may pressure you into making quick investments without giving you enough time to research. Before investing, take the time to learn about the companies you’re considering working with. Knowing the authentic avenues for investing in cryptocurrencies and other assets is important.

How To Avoid Crypto Scams?

To avoid becoming a victim of scams, take several safety measures. If you notice any warning signs, avoid clicking on links, calling phone numbers, contacting individuals, or sending money. Additionally:

• Ignore requests for your cryptocurrency keys. Legitimate transactions don’t need them, and they control your access to your wallet and assets.
• Stay away from businesses promising substantial financial gains.
• Exercise caution when approached by investment managers claiming rapid growth of your funds.
• Be skeptical of any “celebrities” contacting you regarding cryptocurrency purchases, as authentic celebrities don’t typically engage in such requests.
• If you’ve connected with someone on an online dating platform, be careful and avoid giving them money. Always insist on meeting in person.
• If a company sends you a message saying your account is frozen, ignore it. Even if it seems familiar or new, don’t respond to anyone who claims they can “unfreeze” your account.
• Don’t respond if someone who claims to be from the government, law enforcement, or a utility company contacts you and says that your accounts or assets are frozen. Instead, go to the official website of the relevant agency to check the information.
• Steer clear of job listings for cash-to-crypto converter or crypto miner positions.
• Verify claims made by scammers regarding explicit material they threaten to post unless you send cryptocurrency; report such blackmail.
• Decline offers of “free” money or cryptocurrency to protect yourself from potential scams.

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