Financial scams, like the infamous Nigerian Prince scams and ‘get rich quick’ schemes, have been a severe issue for most people. With the advancement of technology and the prevalence of cryptocurrency, scammers have adapted and transitioned from taking your money to cryptocurrency.
This article will examine some common crypto scams per the Federal Trade Commission and tips to avoid getting ripped.
Scam #1: Unsolicited Communication from ‘Investment Managers’
A common tactic among crypto scammers is to invite you to ‘invest’ in them or their company and claim significant returns. They may even lead you to their website and show proofs of profit through screenshots of large withdrawals to get your trust. But don’t be lured; all these are fabricated to take your tokens.
Pro tip: Take time to investigate the people or companies you’ll be investing in. You can even ask if they’re a legitimate business on forums or crypto chat groups.
Scam #2: Scammers Posing as Celebrities or Companies
Most celebrities are known endorsers for brands and businesses, as they can quickly gain the confidence of the masses. And for the uninitiated, a direct message from a celebrity or well-known company via social asking you to invest in a crypto project can be a dream come true. Unfortunately, scammers know this and capitalize on popular names in the entertainment industry to steal crypto tokens.
Pro tip: Celebrities won’t contact you directly. If an account does, it’s most likely a scam. Additionally, never tap on a link or send funds on a QR code from people unless you can trust them 100%.
Scam #3: ‘Too Good to be True’ Promises
As with any business, cryptocurrency projects can’t guarantee large returns, especially in a short timeframe. Moreover, most crypto investments usually include risks, with volatile crypto coins having higher risks than stablecoins. Scammers will even promise the moon to get your attention (and investments.)
Pro tip: Ask important questions before placing an investment. Stay away from them if they can’t explain how you’ll get the promised returns or how the process works logically. Always think critically before investing: if it’s too good to be true, it probably is.
Scam #4: Dating App Lurkers
Studies show that as of early 2023, most crypto adopters in the US are males in the 18-34 age group. And with how challenging the dating scene is, many males opt for dating sites to find companionship and someone to be with. That’s why many scammers lurk on dating sites, posing as females, and butter up their pray before diving in with their scam.
Pro tip: Investment advice and dating shouldn’t mix – either one or the other.
Staying Safe in the Crypto Landscape
Vigilance and common sense will be an investor’s strongest weapons in steering clear of crypto scams. Knowing how to spot a scam from a mile away will help avoid being their next victim.
If you’re in the market for a safe and reliable crypto investment, ETHi is your best choice. Visit our website today to learn more about ETHi and how you can revolutionize homeownership through the blockchain.