For newbies eyeing to involve in cryptocurency, be careful!

[jademaxsuy]

5 Most Common Crypto-Currency Scams

ICO fraud/scam

ICO’s work just like a “head Starter” campaign, investors can invest in a small coin AKA Alt-Coins to help it gain value and become a substantial token/ coin.

All and all a legitimate way to invest in a company/ product, betting on the future of that product/ company. A real ICO will have a profile, a site and a founder, keep a close eye and a healthy dos of skepticism if you are looking to invest in ICO’s, look for clear communication (available support team, that the numbers on the site are available etc.), realistic product expectations (the product predictions are not exaggerated, notice deals that are ‘too good to be true’ ) and shady profiles.

When investing in ICO’s, if there is a doubt, take a step back, don’t be timid to ask ‘hard’ questions like ‘what your yearly forecast is? What this product/coin is for? What needs it will answer?” a dignified ICO will have this information available for their investors.

Exchange Scam

Many platforms offer to allow investors trade with their Bitcoin or trade on Bitcoin against other currencies such as the US Dollar, on a Forex model platform, whether they have a very strict withdrawal policy or they would ask you to deposit your BTC in their platform to never allow you to take them out, these exchanges seem to open in large amounts like mushrooms after the first rain. Many ex-Binary Option companies have moved their business to these types of exchanges, which should indicate the nature of thus exchanges. Some exchanges are legitimate, but just like the case in KuCoin; their domain was duplicated and many of their investors were redirected to use the scam platform, all the investors lost everything they sent to what they thought to be their regular exchange. When investing with an exchange make sure – clear communication (again, it’s very important to know you have someone to ask and consult with) and working phone numbers and lines, advise is given by professionals only! Don’t be shay to ask if your consultant studied finance and where, dos he have a license? what are the withdrawal policy? are you getting clear information? (it’s very easy to get confused when your account manager is talking in ‘technical terms’ but can he explain it in simple words and it will still sound logical?) At the end of a trading day – is it possible to withdrawal your BTC to an offline wallet? There are no stupid questions when looking for a legitimate exchange.

Payment fraud

 Like the case with Bitconnect; some platforms will allow you to take a loan to ‘borrow’ a Crypto-Coin for a set profit and other bonuses, Clients then are asked to purchase BCC tokens to keep the participance, naturally that got the token to increase in price. Reminding us the High Yield pyramid scam, where that only the first investors profit while all the others payed the price for that taken payout. In conclusion, the best way to invest and get in the Crypto-Currency world is to educate yourself and buy small amounts of coins from quality exchange. If something smells fishy, or if you are not sure if you’re in good hands; let it go. Better to take your time and feel confident of what you know then to fall a victim to another scam.

Impersonation Fraud

Decentralized money is meant to be personal, therefore many scammers impersonate to high profile investors, offering to work with your wallet to help increase the account for a fixed percentage, asking for the wallet address and user details. In result ether they hold the account as a captive, blackmailing the account owner to get funds out or to allow access to the account or just plainly steal the account whole leaving nothing behind to try and track them down. Never ever provide your wallet address/ key address to anyone! Your privet Key and wallet address is to remain privet. If you are approached by a ‘professional trader/investor” on social media such as Facebook/ Twitter/ Instagram/ What’s Up etc. close, block- do not respond back, remember one thing; a real investor/ trader/ broker will not start ‘fishing’ for client’s, if an investor is that high profiled you should be able to find information about him online, and no respectful brokerage or investment house will contact client’s through social media.

Fake Free Promotion

Fake giveaway’s go’s hand in hand with the last criteria, impersonators will use promotions like free bonus, free counseling, free tokens/ coins to attract the client’s, everyone loves a free product, but make sure one free promotion will not come at a heavy cost; if you been lured by a promotion like this and get to a page asking you to make a deposit/ investment/ account activation first- do not continue, probably that deposit will be gone before you know it never to be returned.

Source: https://rexwealthrecovery.com/cryptocurrency-scams/#about

[1714729913]

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[1714729913]

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[BIT-BENDER]

Good article, but what can you make out of it? You have read it so a bit summary of what you think and how a knowledge of it can help can accompany the link.
You wrote what was on the article, we can get that on the link, its like reading it twice
You can summarize it on
+ how it can help -Newbies-
+ suggesting alternative to a scam
 And more, make it indepth let's understand/get what you picked out from the topic/article.

Try providing suggestions with summary
Why we should not just write an article and put a link without our own summary, intake from the article was discussed there

[Charles-Tim]

I like the write up, but I will like you to include the recent one which seems more like the ICO, which are some DeFi projects. Many people have although gained this years from DeFi but many people have also been scammed this year alone. I hope we have known many scam in DeFi while the last one I knew about for now was about Tron that legitimized a project that pulled an exit scam. There are many of such scam now and will not be the last. You can read about the scam by click below link.
https://cointelegraph.com/news/tron-legitimized-a-project-before-it-pulled-an-exit-scam-community-says/amp

People need to have an excellent knowledge about DeFi project before investing because it can be scam.

[Cadaver20]

You can read about the scam by click below link.
https://cointelegraph.com/news/tron-legitimized-a-project-before-it-pulled-an-exit-scam-community-says/amp

There are also some topic in Alternate cryptocurrencies section which disscuss about DeFi exit scam. Such as
1. 💩DeFi scams [history]💩
2. Another DeFi exit scam
3. Define the (scam) DeFi.

People need to have an excellent knowledge about DeFi project before investing because it can be scam.

I have a collected topic about DeFi. I think people need to visit here before investing any DeFi project/ICO.
[DeFi] Some excellent topics on DeFi.

[jossiel]

Don't forget about the email scam.

Those emails that are telling you that they've seen you and gained access to your personal computer and saw you did naughty things. They're asking for bitcoin payments and payment must be sent to the bitcoin address that they've left.

That's an obvious scam.

[Bitcoin_Arena]

This thread includes almost all the scam methods you have listed and it's much more detailed and elaborate on how the scams are carried out - List of (un)known methods scammers user to scam users with honorable mention

Mybe it would be a good idea to the the link in the OP.

[tranthidung]

Collection of comprehensive guides on identify and avoid scam projects

The most common and traditional scam method is PONZI, MLM. This scam method is used by scammers in society for too long. In specific period, they will try to abuse a specific are in one nation, from sell, medicine, agriculture to crypto. They switch around different area to scam.

On social media or messenger platforms, impersonation scam is too common. It is easy to detect impersonators if you know basic investigation steps (account ages, number of followers, audit scores, badge, username, account ID number, etc.)

The DeFi trend brings another scam type (it is not new but nowadays it is too popular). Scammers create new projects with same or similar token names to steal money from investors. To avoid this scam trap, please make sure to check smart contract address (smart contract addresses are always different for different projects), decimal of the token. Furthermore, do double or tripple checks on different DeFi market-capitalization websites. Make sure you spend capital to exactly a token you want to invest in.

Overview on DeFi (get list of DeFi market-capitalization sites there).

[jademaxsuy]

What could be the forum stand against this scam? Are we really being helpful for spreading awareness or not? I do not know if there are statistics that could prove that spreading awareness could help new users to get away from fraud and scams. Sad to say that the information on this scam had been made already here with more and more users posting related topics but still there are some users get scam and being fraud. So, what could be done to make it more effective to to combat against scammers and fraud people?

[tranthidung]

What could be the forum stand against this scam? Are we really being helpful for spreading awareness or not? I do not know if there are statistics that could prove that spreading awareness could help new users to get away from fraud and scams. Sad to say that the information on this scam had been made already here with more and more users posting related topics but still there are some users get scam and being fraud.

The forum has its Scam accusations board and helpful guides. I thought they are enough to help newbies. The rest responsibility is their own attitude to read and learn. Last but not least, people must control their own greed activities.

Beyond the forum, there are many educational articles from blogs, websites, exchanges, crypto academies (you can find many articles with Google) but people still get scammed. It is their responsibilities, not anyone else. They have to change their attitude, then read more, learn more and practice more to better control their investment behavior.

Binance has its Binance academy and you can find the article: 5 common cryptocurrency scams and how to avoid them. Unfortunately, I doubt most of Binance users read that article 

[Alucard1]

Most of the techniques or ways of scammers to trick other people is by creating a fake website. I already have an experience of being scammed through a fake website, the website has an offer to double your money for only 24 hours so as a beginner I've hooked up by that offer because it seems like easy money got me but then a day goes by, there still no money that came to me from that investment website, it took a week before I realized that it is a scam, it is just a normal experience for every beginner of this crypto world. Thankfully I already know that there is no instant money from this world, there would be no website that can double your money for only a few days. It is an obvious scam.
In order for us to avoid these scenarios, we should always be vigilant, we may identify whether the website is fake or not, by reading the reviews of it. We may also check it on their official website.

Collection of comprehensive guides on identify and avoid scam projects

The most common and traditional scam method is PONZI, MLM. This scam method is used by scammers in society for too long. In specific period, they will try to abuse a specific are in one nation, from sell, medicine, agriculture to crypto. They switch around different area to scam.

That's true, that is also a common way of the scammers, sadly those people who are at the bottom will suffer for the scam. Scammers are so intelligent by doing this, we should be intelligent as well to define whether we are on the fake website or not.

[Smartvirus]

The impersonation fraud are not quite new in our world today in contrast to the ICO fraud, Exchange scam, Payment Fraud amongst others to newbies but then, a particular ignorance or should I say is due to excitement to have been involved in something new, makes users not to recognize the difference between a potential scam and an opportunity.
These are two different things but it takes a bit of experience to differentiate between the two. Starting small doesn't always mean you investing immediately or walk the paths with a promise of earning. Start small could mean you learning the basics and tricks in the new field.

[erikoy]

The article is long, you does not explain to beginners how to identify scam and how to bypass this type of fraud?
There are few earning and many scam, teaching people how to identify fraud is better than telling them what fraud is?

It does  not matter how long or short the article was the important is the title. One can have their common sense even if being lazy to red it all. The important thing is that we knew already what are those things tha we should be aware of and continue to spread awareness to all even if it means making another the same thread. It can save users getting into these baits and we do not want that to happen to other users being a victim.of such activities.

[plvbob0070]

It is a must to remember how these types of scam work, so we can have a better understanding that scam can happen in different ways. Especially nowadays, that scammers don't want to miss any chance of tricking people to get what they want. For everyone who is seeking additional information to prevent falling into bitcoin scams, you can check this out.

To check if the project is a scam
Link: Collection of comprehensive guides on identify and avoid scam projects

To protect yourself from fake giveaways:
Link: How to protect yourself from fake giveaways.