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This cryptocurrency scam is made quite attractive to greedy people. For example, an unknown group of entrepreneurs is running the iCenter bot scam, which is a Ponzi scheme for Bitcoin and Litecoin, which provides no information on investment strategies, but somehow promises investors a 1.2% daily return. The iCenter scheme operates via group chat on Telegram. Starting with a small group of scammers, they get referral codes that they share with others, on blogs and on social media, wishing them to join the chat. Once there, newcomers see an uplifting and interesting message from the original scammers. Some of the newcomers decided to invest, where they were tasked with creating individual bitcoin wallets in order to store bitcoins. They agree to wait some time period - 99 or 120 days - to receive a significant return. During that time, newcomers often used social media to share their own referral code with friends, bringing more people into group chats and into investment schemes. When a new person joins, the person who recruits will get a percentage of the new funds, and the cycle continues, paying the previous participant each new round of investors. Some members are working very hard to raise new funds, posting video tutorials and pictures of themselves holding large sums of money to entice them to join the scam.

Some scammers commit outright scams. The founders of the scam cryptocurrency OneCoin scammed investors of $ 3.8 billion by convincing people that their non-existent cryptocurrency is real. Other scams are based on impressing potential victims with jargon or special knowledge claims. Global Trading Scammers claim they are taking advantage of the price differences on various cryptocurrency exchanges to profit from what is called arbitrage - simply buying cheap and selling at a higher price. Global Trading also uses a bot on Telegram - investors can send balance inquiry messages and get responses with false information about how much is on their accounts, sometimes even seeing balances go up by 1% in an hour. With returns looking like that, who could blame others for sharing the schemes with their friends and family on social media?

Another popular scam technique is called an "initial coin offering (ICO)." A potentially legitimate investment opportunity, ICOs are essentially a way for startup cryptocurrency companies to raise money from future users: In return for sending active cryptocurrencies like bitcoin and ethereum, customers are promised a discount on new cryptocoin. Many of the initial coin offerings turned out to be cryptocurrency scams, with organizers engaging in sneaky plots, even renting fake offices and creating fancy-looking marketing materials. In 2017, a lot of hype and media coverage about cryptocurrencies gave rise to a massive wave of ICO scams. In 2018, some 1,000 ICO attempts collapsed, costing at least $ 100 million. Many of these projects have no original ideas - more than 15% of them have copied ideas from other cryptocurrencies, or even plagiarized supporting documentation.

Investors looking for returns in the new technology sector are still quite attractive in the blockchain and cryptocurrency sectors - but should be careful, as they have quite a complex system. Newcomers and experts alike can potentially fall victim to cryptocurrency scams. In an environment like the current cryptocurrency market, potential investors must be very careful to research what they are putting in, and be sure to find out who is involved and what the real plans are for making money - without tricking anyone else.

There is no direct or concise manner in which crypto currency scam works; there are different methods employed in the past; and different methods emplpyed today; if we bring into consideration both events; they are different from one another. So how do you avoid crypto currency scams in the future ? AVOID It totally.

You need to credit the source for your post though; it is against the forum rules. Always do your own research and ensure that you do not let greed and emotions be your guide.

the initial basis for following a project is to research in as much detail as possible, who is the owner and who supports it,
and indeed the experts and newcomers are very many victims of project fraud, all back to yourself wanting to invest in a
new project or continue a proven project that works and survives.

i know so many information  about crypto currency and first time Project coming it's real Projects now Projects is good potential and good team have then so many people are jion this project then increase members and started pre sale tokens then getting so many amount from members then Projects ower things way are giving tokens let's stop the project and its a calling is scam

In order not to get caught up in the hands of dishonest crypto market players, you must:
- common sense :)
- understanding that no one will just make you a millionaire
- any investment is a risk. And we need to reduce the risk assessment and manage them
- the desire to make money quickly and without doing anything - this is one of the key reasons why people fall into the clutches of scammers.
Understand the simple principle - nothing comes out of the void! Someone has to pay for everything!
And even in a good project, you need to invest money and effort, and only then will it bring multiple profits

One of the measures or solutions put in place to curb crypto scam is the escrow system. This helps to determine the authenticity of a transaction before the two parties receives a settlement of their transaction.

Well, i personally suggest that we could be scammed if we don't have accurrate knowledge in crypto .

An interesting thought, but unfortunately there are different ways of fraud and we can see the number of frauds that we find in the market. Many projects with a strong community and fundamentals of development and suddenly the developers disappear with all investment from investors. However, knowledge and solid research are the ideal basis for not falling into ambushes.

You had made a wonderful work by this post.Many scam telegram group was organized by huge people like trading company and Mining company and asked you to send certain amount as initial and they say will add your bitcoin address to mining and scam you at the last.

Quoted for future reference (if needed).
Archived. (https://archive.is/wyzYA)

Your post is very similar to this article https://theconversation.com/how-cryptocurrency-scams-work-114706
Next time don't just paraphrase some article without citing the source.

Scams are gonna everywhere, mate.
Even things involving money in social media, it happens.
You mentioned also ICOs and that's the reason why they started disappear now especially back in 2017 where they boomed and started todecline.
Looking for project is quite harder than ever now.




Edit:

Didn't notice that until I searched the OP's content as well in Google.
Might be using article spinner?  ???

I will really commend your efforts but scams in the crypto space can happen In many other ways, that is, just as there were scams during ICO days, IEO and DeFi also had and still having theirs, also there are even airdrop scams. In addition, I think one of the driving force which makes many people to be victims of these scams is greed, that is, being contented will go a long way in helping people to be safe from scam platforms offering unreasonable returns on investment, trading crypto groups promising sure gains with their trading signals as well as giveaway and airdrop scams. Another driving force is lack of information, if one lacks the right information about an upcoming projects, he will likely fall into the hands of these scammers, that is, before investing, ask the right questions, check the neccessary information about the team and so on.

I want to add some of the ways to scam newbie money on Twitter and Telegram. Currently, there are still quite a few trading pool funds opened without clear information about the team, but they promise to pay 1% (or more) daily interest. They often release images with big win orders and lots of money, which increases the trust of newbies and after they send money they will run away.
So I just want to remind newbies that never trust anyone on this Crypto market, Of course, money will never come to us so easily.

It's better to stay away from such scam. Especially their will be a trading bot scam. Most of the trading bot may failed to predict the 16700$ fall. I was dam sure about it. Mostly the trading bot work good at the stage of dump and pump beginning. They can't predict correctly most the time.

Avoiding scams is relatively simple, avoid all coins except for bitcoin and altcoins like etheruem, never give your private key to anyone, download your wallet only from the official sources and then verify it has not been modified in anyway or form, do not deposit your money in new exchanges and casinos and avoid any investment opportunity no matter how attractive it may seem, if you follow those tips then you are going to eliminate 99% of the scams and you will be able to get the most out of your coins just when you needed them the most.

unrealistic profit from any site link will indicate as a scam my friend
so, you don't need to be worry, if you drop your money in good and solid altcoins project now,
and always do your own research before invest in any cryptocurrency project
regards

Why they can scam? look at the projects you talk about are projects that attract people to invest in that project and hope to get a high return. That is the problem of greed or psychology of fomo following the crowd in the market. I have been a victim of such projects too, and i see most people recognize the scam in this market when they have lost money :) .

Scammers are being creative nowadays, usually, they roam around platforms where crypto enthusiasts are, and they target newbies. Some would pretend to be a support in certain telegram group, or pretend to be an admin who asks for private keys, etc. Some would randomly chat with you and ask for help withdrawing a certain amount from an unknown trading platform telling you they couldn't withdraw due to an IP ban or blocked. Just beware and be aware, anything that promises you quick bucks is a red flag.

Scammers are skilled and bright Person and just happen that they choose to use their ability in Wrong manner in which scamming .

Those Big time scammers are well organized and i believe same groups are running around this market and just Continue Creating different approach to Victimized crypto investors.

What we need to do is understand their ways and make sure that you are familiar so you won't get Hooked by them.

It's quite simple: just don't invest in something which doesn't have any practical usage and avoid passive investments which doesn't explain with property from where it generates profit.
For newbies it's not so easy to spot bad investments, but after you acquire some experience you can do this easily, especially when spotting traditional scams, such the ponzies and ico ones you mentioned. However scammers are very smart and don't repeat the same schemes forever. As crypto currency evolves, their methods evolve as well. So we may face new kinds of scams in the future, which can also trick the average experienced investors.

"Skillful and cunning" scammers cannot exist without stupid and greedy consumers. Stupidity leads to ill-considered steps, a superficial assessment of the project, and greed says "come on, now we will quickly and simply earn x1000". This is what scammers use! Well, plus - the entrance to this market is virtually free for anyone! Look at the stock market and ordinary exchanges - it is very difficult to become a trader there.

Cryptocurrency scam will have so many models that can scam people easily if they can not be careful. The easy thing that you should pay attention to is when you read about the offers that promise to give you a big profit in the short term because that is not impossible, although that can be possible if you have more info or data about that. But mostly, if they give offers like that, you should stay away from them and don't even try to ask or join them. There will be many other ways that the scammers will use to scam people, so be careful.

I have seen many scammer try to get much profit from cryptocurrency and I think looks very easy how to make investor scam with investing in cryptocurrency, I know many investor still interested with ICO project and make big news with your ICO project list on bigger exchange like Binance, Bittrex and Houbi, almost investor will trust with your ideas and you should listed you coin above on bigger exchange then when many investor buy coin during ICO and after trading you can sell all your assets and make price dump, this the way what did by many scammer of ICO and coin project, its not give guarantee although coin listed on Binance like happen with Sushi coin when developer sold more than 50% coin supply price from $5 become 0.8$, very bad impact for investor.

An intriguing idea, however shockingly there are various methods of scam and we can see the quantity of scammers that we find in the market. Numerous projects with a solid team and essentials of development and abruptly the developers vanish with all investment from investors. Be that as it may, information and strong examination are the ideal reason for not falling into scams

Needless to say, they can’t permanently remain in using a specific approach in deceiving investors. As the different fraud techniques become familiar in the public, which implies that they have to look for alternative ways to continue their scheme. In such a way, people won’t suspect anything. Regardless, we have to be vigilant as they make innovative changes with their techniques and understand that scams can happen in different ways.

I see many people offering the same scheme mostly in province where Bitcoin is not so popular and not known they explain about Bitcoin and how the price increase that way . And then offering investment to earn bitcoin or other coins that they say that can be a Bitcoin someday in their explanations. The most victim they had is those people who doesn't even know what Bitcoin is and no knowledge how it's actually works.

Most of the Bounty hunters understand how crypto currency works. In order not to scammed by people you will have remove any traces of greed and understand the principles of life saying Rome is not build in a day. To understand scam project there must be research carried out, most of real cryptocurrency comes with both investing and hard work.
Note that: there's no free money anyway.

Another very obvious tell that a site or a coin is a scam is that they promise guaranteed returns on your investment, while no one can do anything like that, those that have traded for years or even decades despite having success in the markets will tell you that they cannot guarantee profits of any kind, after all if the market is not moving how are they going to generate profits in that case? Honest traders and investors will display their previous success but will always put a disclaimer somewhere on their website that past results do not guarantee future performance.

Hopefully it's not a modus made often by scammers, as long as there are people who keeps thinking that crypto is an easy money, many will be tempted to join in like projects and ruin every investment plan they have jsut to be able to join  always be careful since price were volatile and market is too decentralized we don't have no  one to blame when things went wrong but it's only us,every scammers have their on way and style so we must have our own measures to not be a victim.

It's still a popular way to scam people, there are new projects coming out using ICO, but not all projects that does this are scammers right away, you have to figure out if they really are, some of them are copying other project's whitepaper and some employ fake profiles and fake credentials and they are lying about on their roadmap.

There are different ways on how cryptocurrency scams work and those evolve as time goes by for the fact that scammers are getting wiser to think of other possible ways on how they will execute their scheme which is the aim or main goal is of course to obviously scam people which is more specifically targeting newbies or inexperienced people that still do not have any prior knowledge on how cryptocurrency do work. Scams can be commonly executed through projects, site promotions and even strange emails and personal messages offering you to invest into such crypto to give you a big bunch of profit in return which is obviously impossible. It is better to make yourself aware and be knowledgeable enough to determine those common and obvious schemes to avoid getting caught in a scam and ended up being victimized by those scammers in crypto world.

The basic things that scam works are commonly like giving incertain information about the project, but they offer very promising reward and also projects. That seems to be unrealistic. Moreover, the uncleanness of the project development, whitepaper, and also team will also make the project seems suspicious.
And what happens here is that there are many people deceived o this high reward to get.
Sometimes, investors are confused about deciding which is a scam and which is a legit project. And if you choose the one with unrealistic project, rewards, and also promise, it may be closed to the scam projects. Additionally, it is also about scams done in many more media like social media Youtube, Telegram, and also other media. They look like the same, giving very high opportunity to earn much money with easy ways, depositing first, and others.

Paraphrase or text spining and did not leave a source link. Plagiarsim. Honestly when I saw OP, I searched and found plagiarism (same article as you found), then I scroll down a few posts and saw your plagiarism report.

[TIPS] to avoid plagiarism (https://bitcointalk.org/index.php?topic=5133485.msg50666258#msg50666258)

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About scam methods, I have
Collection of comprehensive guides on identify and avoid scam projects (https://bitcointalk.org/index.php?topic=5125435.msg50347145#msg50347145)

Having an ICO doesn't make the coin/token a scam, most big market cap coins/tokens have ICO on their end but look where they are right now. IMO, the most successful one is Ethereum https://icodrops.com/ethereum/ and that's almost x2000 gains to those hodlers of ETH this time around. But we can say that almost 90% of those that conducting an ICO will turn out to be a scam.

Not all ICO but you can easily say if the project is scam under the ICO program and this is why scammers are also trying to do a project under IEO and DeFi because this is the new trend now. We have to understand how the scammer works and take our necessary precaution before investing into a project, if you are doubt with the project you can easily ask here if the project is legit or not, don't rush things to invest on new project whether its ICO, IEO, DEFI you have to analyze it.

ICO programs or their whitepapers aren't mean to say they're legit some of the time even those strong projects and has strongest way to success almost end up pulling the rug, same as this DeFi and IEO. What I want to emphasize is most of the projects do tend to fail it's on the investors end to be responsible on where they put their hard-earned monies.

It's not that this forum could provide you of all the answers to all of your questions since not all crypto projects are in here but yeah we have an extensive helpful members here that might give us an idea of a certain project. My advice is always DYOR, responsible investing and always take the risks.

Yes, criminals are also online now.

They wear attractive masks to lure people in and steal their bitcoins.

It's unfair, but it's the best way to learn. I too have lost thousands of dollars.

PlusToken, OneCoin among others are the biggest scams in the crypto world.

I share with you is a good article: https://es.beincrypto.com/conoce-6-cripto-estafas-mas-grandes-historia-hasta-2020/

This is such a great summary. These are most of the things I experience throughout my first 2 years in crypto. It's a great share for anyone willing to start, just for them to avoid the usual bad scenario, but there's always a catch for the innovation, new ideas come, as well the scams/fraud trying to catch-up.

Just do the research first, or experience it first hand and get the lessons learned.

Most of scammers aren't that bright. It's those hackers who stole for example from smart contract by exploiting that have bright mind or high intelligence but most of scammers usually just luring innocent peolpe using the most basic social engineering into tricking all those people.
Trust me, if these so called scammers were really bright then they don't go around scamming people but instead make something and make money out of it but nah. Their only skill is to scam people and just that.

Not all ico project that are release are scam. There are still some good projects. But people need to study the project very well. And made some research. So that we must not victimize by scammers.

research is the key for us, we should not be lazy to analize any project that occur in market recently. maybe some of them will provide high opportunity for us , but maybe they could lie to us and take our money. in any market we will face two condition , and could not avoid it.

The number of scams in crypto has been there for a long time and now the number of scams is increasing with the increase in demand for crypto this is why you need to do a market analysis to understand how cryptocurrency scandals work. Will be crypto the reason why newcomers are more vulnerable is because they plan to work without knowing anything about the market so they are more vulnerable to avoid scams you need to know and learn about crypto well try to know all the information by analyzing the market.

That is not only for crypto scam that attitude and strategy is for general meaning scamming in all parts of the system either inside crypto or outside.

Never put your money in investing that you don't fully understand even How legit this is.

Take time to lean first so in case obstacles come then you know how to survive and knows what will coming next.
The problem in Many victims is they tend to Just look at the profit but not ready for the losses.

There is the same rule in all kinds of investment based business when a project or people offer something that is too good to be true, you need to be suspicious, it most likely scam. But since the raising of IEO I think it is easier to pick crypto investment. Just invest in a project that launch IEO on big Exchange, it less likely to be a scam.

There were many such scams where these people try to get many profit from scamming people and I think it looks very easy if you think about it how these people are able to scam others, but of course easy in a sense you have to be good at talking to people to be able to convince them to give their money and invest it on the project. There are also those like Sushi coin that invested first on the hype and tried to get as much people as possible then do tactics that seems legit and will simply affect the coins price, and then blast off into space. By now many of us know a bit how they operate so we can ignore them and not support them.

Things got so bad in 2017 that even today and I include myself among those people that anyone that listens to the word ico immediately assumes that any coin that is using that model is a scam, and even if it is unfair for the few coins that are legitimate you are going to be correct most of the time by using this thought process so I do not see why we need to change it when it has saved us a lot of money over the years by not investing in all of those scams which are floating on the market using that label.

Usually they do make really good promises and sometimes it make sense. but in the end they don't make it happen for some reason that obviously isn't a problem. The scam happened because it was planned from the beginning, and we can see it clearly from how the development of the platform they built, from their seriousness and other things.

Based on my observations, cryptocurrency scams occur because many investors are not careful in choosing projects. There are still
many investors who are lazy to do research on the projects they want to join, and only believe in the opinions of others. Which other
people's opinion is not necessarily correct. As long as we do research on projects that we will join properly. Cryptocurrency scams
should be avoided, because scammers work by exploiting the weaknesses of their victims.

Scammers are getting better over the time and their methods are mostly like a legitimate project, Too good to be true offerings are the one that newbies and lazy people who don't research fall but a realistic project that pretends too good make the serious investors who made some research about the project fall. There are some obvious signs that can reveal that the project is fake/scam. Fake project team, counterfeit whitepaper, too good to be true returns are the good signs that the project is fake. Investing in an IEO doesn't make the project a scam proof investment. I believed that there are potential loopholes in IEO.

We do learn from our experiences and mistakes, but the best thing to do is we should learn from others mistakes that we usually read in this forum. So when we encounter the same situation we already know what to do and what not to do because scam and other illegal activities is everywhere in the crypto and blockchain space.

whatever it is about investing, be it projects or coins, it is highly recommended to always research in detail, such as the background of the team & Dev, especially experience in managing previous projects, what products they offer in the market, how big is the community & partners in inside etc. As an investor you need to manage finances properly and also not be greedy in taking profits.

What happens is that scammers have a huge edge over legitimate projects, while legitimate projects have to worry about creating a working product, the price of their coin, the community and the promotion of their project and balance all of it at the same time, the scammers only have to worry about one thing and that is the marketing, they only care about promoting their scam as much as possible because they know they are not interested in building anything and just want to scam their victims so they can make any kind of unrealistic claims and unskilled investors believe in their promises and eventually lose it all.

There are actually lots of scam projects since then, there are also lots of people being scammed. That is the reason why we should really take some information about the project first before taking part or supporting that, since your own money is involved, once you've sent it to them and they intended to scam people, you have nothing to do with it. Knowledge and understanding are important before you invest because not all projects are scams. There are some people who really want to take advantage of your ignorance so be aware.

Scam projects will persist as long as there are people patronizing it. I know it is hard to know if the project is really legit or not, especially during its early days, but you need to check for warning signals if you are serious in investing your money to them. I have experienced also with ICO failure before. Even if I searched and read about its background, team member published and endorsed by known user here, still the project failed and lost my money. Couldn't call it as a scam as their platform just didn't have success in the market. But you can't get your money back.

is this some kind of mlm scheme? I can't believe people will still buy his brag. what I mean is we have internet access, at least do some research or learn a little about bitcoin. but if this happens, I hope that no one will be affected by this kind of scam anymore, most of them are old people and will probably use their money for old age

Well said mate, scammers don't normally make use of one pattern all the time, they keep evolving and changing their scamming methods since investors are becoming smarter nowadays, scammers are always looking for a new way to make whatever ponzi scheme they are running look real and catching to investors, for me the best way to avoid scam is to stay away from anything that seems too good to be true, any hyip or project that promise insane returns is a red flag for me,also investors should stop looking for the next bitcoin.

Maybe the main reason why people falls to easily to crypto scams is because of the fake/false promises that they promise to mostly new to this crypto industry. Also, one reason why people get into fraudulents is because of too much greed which lead them of getting scammed. Nonetheless, always bear in mind to be more vigilant and cautious in anything that you do in this cryto industry to avoid becoming a victim.

May we not fall victim to fraudulent crypto currency scams because there is no single module of operation, just recently there are rumors of emporium finance developers eloping and abandoning the project after a good trading and high price spree, betraying the Bounty hunters and also their investors. While we also have projects that exitscam immediately after token sale

As investors we just have to stay alert to ensure that we do not invest wrongly. Always do your own research

"Make profit faster" has always been a shady promotion. and most newbies are often caught in this. If a crypto offers unrealistic profits and no development or no team backing up behind it, the project will usually end up being a scam and you will lose your investment.

in history, many have been frustrated especially, newbies, Who Assess that scam, perhaps it is a cause to don't think something for build-up porpuses when participating in any crypto projects, as long as we have a newbie, all scammers are happy right' so that it is easy to use for their investment scam as a counterpart with a good project, instantly it is hard to elide and still work behind, therefore, in progress, cooperation with others before we enter are the best answer with this matter to prevent scams work.

This is why it is important to not let yourself be enchanted by their words and try to look at things from a logical point of view, if a scammer is offering big returns if you invest with them then why they just do not ask for a loan to bank? It will be easier and faster than trying to obtain money from people and he will obtain profits for himself and he will not have to reveal the method that he has, the truth is they cannot do what they say they can and they are only saying it to see who falls in their scam.

A closer look at cryptocurrency scamming reveals that scammers first create unsolicited stories, lure members through some social media, and recruit members. Later, when the audience is more, they scandalize the accepted coin wrapper by saying that it is a lucrative profit. It is the main thing to scam.