We’ve all heard of crypto scams. Hardly a day goes by without a headline about yet another cryptocurrency scam. Many people may think the best way to avoid losing their money to crypto scams is to not use digital currency.
That may be fine for some people. However, it’s akin to what many psychologists term “avoidance behavior.” In the end, it isn’t realistic for everyone, and simply avoiding the problem isn’t the answer.
Those of us who were around in the 1990s may recall how many dangers were lurking on the internet. These hazards haven’t disappeared, but in the old days, people were rationalizing not using the internet at all. We may remember friends or family members back them swearing they would never use their credit cards online
So what happened? Are we all online nowadays because there are no online scams? Not at all. Have we gotten used to fraud? No. We’ve learned how these internet crimes operate and how to stay safe from them. For instance, we know better than to give anyone our email password or to click on random links.
We can approach crypto scams in a similar way. Learning about the dynamics of bitcoin scams will help us understand what to avoid so we can keep our money safe. We may not think we’ll use digital currencies today, but there’s no doubt they are here to stay. Governments are even issuing digital versions of fiat currency.
So why are there so many crypto scams? The reason people like cryptocurrencies, ironically, is the same reason there are so many crypto currency scams. When you make a payment in bitcoin, it’s instantaneous.
You don’t need to submit an ID or even your name. It’s not like making a bank transfer. No address is required either. Your money could be going anywhere to anyone. This makes transactions quicker and easier. It also introduces a lot of hazards. Fraudsters love the fact that they don’t need names or addresses. It saves them the trouble of coming up with aliases.
When people get crypto scammed, crypto recovery can be a challenge. In fact, fraudsters believe it’s impossible. However, Broker Complaint Registry experts know that with the right experts on your side, crypto recovery is likely. If you need crypto recovery, talk to our experts today.
The following are some of the major crypto scams you’ve been reading about. You’ve probably run into a few of these online.
Crypto trading scams are quite common. Along with forex, crypto is one of the most popular speculative trades. There are many more fraudulent crypto trading schemes than legitimate opportunities. Always check your crypto broker has a license before opening an account.
Whatsapp is a convenient way to message people. It also has very little oversight. If you spend any time on WhatsApp groups, you’ve likely been spammed with ads telling you to quit your job and make millions. These are often obvious WhatsApp scams crypto scams, but a lot of people decide to take a chance.
Also, people we meet on social media may ask us to switch to Whatsapp. They may prefer Whatsapp or there may be a dodgy reason. Crypto scammers may be worried that social media platforms may be vigilant about fraud, but Whatsapp seems like a safer place for them. Be careful about these requests.
Crypto mining is an opportunity to literally make money. However, few of us can do these complex mathematical problems on supercomputers. Instead, crypto mining scams give us the opportunity to invest in crypto mining.
Like crypto trading scams, most crypto mining scams are frauds but not all of them. If you want to participate in crypto mining, make sure you are dealing with a licensed platform.
One of the most painful types of crypto scams is crypto romance scams. Many people earnestly look for love, but crypto romance scams slam the door in their faces. They lure people in emotionally and count on them to be in denial later when they ask for money. Too often, people tolerate money coming up in romantic conversations. This is always a huge red flag.
NFTs are another form of crypto, but they aren’t currencies. Instead, they are pieces of art or collectible items. Many people hawk these NFTs with the promise that they will accumulate in value. Like crypto trading scams, there is no reason to make these claims and no way of knowing whether an NFT will increase in value.
NFT crypto scams are often rug-pull schemes. This means a YouTube influencer or a celebrity will push an NFT, encourage people to invest, and then not mention it again. They probably sold it, cashed in on the hype, and left the NFT to decline in value, which isn’t hard, because most of them were worth nothing, to begin with.
Social media is a favorite venue for crypto scams because they allow people to be anonymous. Crypto scammers don’t need a website. They don’t have to identify themselves. All types of crypto scams can be found on social media–crypto romance scams, crypto trading scams, NFT crypto scams, crypto mining scams. It pays to be skeptical about money-making claims on these platforms.
USDT or Tether is considered the most reliable form of stablecoin. People who are otherwise nervous about cryptocurrencies may feel reassured by stablecoins because they are supposed to be levered to the U.S. dollar. However, as we saw with the Luna USDT collapse, stablecoins can become disconnected easily from the dollar and plummet in value.
A common USDT scam takes the form of tether giveaways. You may get a message saying that you’ve received the equivalent of $1 million of USDT. They do this to get your information and to convince you to pay a fee. Keep in mind that no one will give you something huge out of the blue. If you haven’t joined a contest or sweepstakes, there is no reason for anyone to give money away.
One of the things that crypto scams count on is that many victims will just give up. Too many people are under the false impression that crypto recovery isn’t possible. However, if you follow these cases, you may have seen many news stories about the authorities cracking down on crypto scams and judges rewarding money to bitcoin scam victims.
Broker Complaint Registry has your back when you make a crypto recovery claim. We’ll consult with you and investigate your case immediately. Using crypto trace software and bitcoin forensics, we can successfully track down your funds on the blockchain.
If you suspect you are dealing with a crypto scam, request a withdrawal or refund. If you are not given your money back, contact the Broker Complaint Registry right away. We will consult with you, work to track down your funds and create investigative reports, and will assist with fund recovery efforts.