Honeypot scams really offers too good true opportunities which the victim enters with the hope of making it big and ends up being the sacrificial lamb and like the name goes, such opportunities are too sweet looking until you are hit with the reality that your funds are gone. The Honeypot scams are effected in three stages
a)
Setting the trap: This is the stage whereby the mouthwatering opportunity is set up either in crypto field or other enabled environment, active maretting is done to promote these projects through running ads on social media and even via influencers to spread the news and channel victims through the various trap funnels into the investment pit.
b)
Closing the trap : At this juncture the owners of the fake project have amassed some considerable wealth margin and are ready to trap users funds,, they make slight adjustments to their code to prevent further withdrawals while still accepting new investors. Most times people are not even allowed to withdraw their funds from the onset as only the scammer or few selected users are allowed to withdraw on the platform.
c)
Exit : At this point the scammer makes away with the users funds, leaving the investor trapped and unable to withdraw his investment and in some cases of crypto the liquidity is sharply removed and the coin amounts to nothing.
TYPES OF HONEYPOT SCAMS - Crypto scams : e.g. fake token sales, fake exchanges e.t.c
- Investment scams : e.g. Fake E-commerce websites, Ponzi schemes
- Social scams e.g. Dating scams
Honeypot scams are well organized and most times targets unsuspecting and greedy clients. So the next time you see an offer do well to scrutinize it very well and do not embrace offers that are too good to be true or have suspicious undertones.