In the crypto space, it can be challenging to differentiate between a legitimate opportunity and a potential scam.
Common Crypto Scams
Fraudulent emails or text messages trick users into revealing sensitive information or downloading malicious software.
Detecting
- Suspicious Links or Attachments. Emails or texts contain links or attachments that prompt you to provide personal or wallet information.
- Urgent Requests. Messages create a sense of urgency, claiming your account will be suspended or funds will be lost.
- Unknown Senders. Messages from unknown or suspicious senders pretending to be a legitimate service or company.
Rejecting
- Do Not Click. Avoid clicking on any links or downloading attachments.
- Verify Sender. Contact the company directly through their official channels.
- Delete and Ignore. Delete the message immediately if it seems suspicious.
Reporting
- Report the phishing or smishing attempt to your crypto platform’s support team by sending an email or contacting by other supporting methods of contact.
- Report to the Anti-Fraud Center in your jurisdiction.
- Report fraudulent activity to your local law enforcement agency as soon as possible.
Scammers use psychological manipulation to deceive individuals into providing sensitive information or making decisions that benefit the fraudster
Detecting
- Emotional Manipulation. Creates fear, urgency, or excitement to influence your decisions.
- Requests for Personal Info. Asks for private details or passwords.
- Unexpected Communication. Comes from an unverified source or person.
Rejecting
- Verify Identity. Contact the entity directly through trusted channels. Do Not Share Info. Refuse to provide sensitive information.
- Ignore Requests. Avoid engaging with suspicious messages.
Reporting
- Report the phishing or smishing attempt to your crypto platform’s support team by sending an email or contacting by other supporting methods of contact.
- Report to the Anti-Fraud Center in your jurisdiction.
- Report fraudulent activity to your local law enforcement agency as soon as possible.
These platforms claim to offer high returns within short periods, sometimes by using complex jargon or promoting secretive investment strategies.
Detecting
- Guaranteed High Returns. Promises large profits with no risk.
- Pressure to Invest. Urgent requests to act quickly.
- Unverified Platforms. Lacks regulatory or official information.
Rejecting
- Research Thoroughly. Check for regulatory approval and reviews.
- Avoid Unverified Offers. Decline any offers that sound too good to be true.
- Consult Experts. Seek advice from financial professionals.
Reporting
- Report the phishing or smishing attempt to your crypto platform’s support team by sending an email or contacting by other supporting methods of contact.
- Report to the Anti-Fraud Center in your jurisdiction.
- Report fraudulent activity to your local law enforcement agency as soon as possible.
Scammers set up fraudulent trading platforms that show fake profits, convincing users to deposit more funds, which they later steal.
Detecting
- Unusual Platform Design. Websites that appear unprofessional, look suspicious, or lack proper design can be signs of a scam or unreliable platform
- No Contact Information. Lacks clear customer support details, address or any other contact information.
- Negative User Feedback. Numerous complaints or scam alerts.
Rejecting
- Do Not Engage. Avoid creating an account or depositing funds.
- Verify URL. Confirm the website’s authenticity.
- Check Reviews. Look for feedback on trusted review sites.
Reporting
- Report the phishing or smishing attempt to your crypto platform’s support team by sending an email or contacting by other supporting methods of contact.
- Report to the Anti-Fraud Center in your jurisdiction.
- Report fraudulent activity to your local law enforcement agency as soon as possible.
Scammers create counterfeit versions of legitimate platforms to capture login credentials or spread malware.
Detecting
- Imitated Branding. Mimics legitimate platform logos and designs.
- Mismatched URLs. URL does not match the official website.
- Unverified Sources. Apps downloaded outside official app stores.
Rejecting
- Use Official Sources. Download apps from verified sources only.
- Double-Check URLs. Ensure the website address is correct.
- Do Not Enter Credentials. Avoid entering login info on suspicious sites.
Reporting
- Report the phishing or smishing attempt to your crypto platform’s support team by sending an email or contacting by other supporting methods of contact.
- Report to the Anti-Fraud Center in your jurisdiction.
- Report fraudulent activity to your local law enforcement agency as soon as possible.
Fraudsters pose as representatives from legitimate companies or government agencies or pretend to be brokers or advisors who can help with crypto investing.
Detecting
- Unexpected Contact. Getting contacted by email, online message or call from someone who claims to be a company representative without prior notice or without you requesting to be contacted.
- Requests for Personal Info. Asks for login details, such as username, password multi-factor authentication or private keys.
- Spelling/Grammar Errors. Email or an online post contains typos or errors that seem unprofessional.
Rejecting
- Do Not Share Info. Never provide sensitive data without verification, legitimate service providers or support representatives will never ask you for your password.
- Contact Company Directly. Use the official contact information to confirm.
- End Communication. If you suspect that you are dealing with an impersonator, disengage from the conversation immediately and contact your service provider directly.
Reporting
- Report the phishing or smishing attempt to your crypto platform’s support team by sending an email or contacting by other supporting methods of contact.
- Report to the Anti-Fraud Center in your jurisdiction.
- Report fraudulent activity to your local law enforcement agency as soon as possible.
Responding to Scams
Crypto Scam Detection Tool
This self-assessment tool is designed to help you identify whether the service provider or platform you are using to trade cryptocurrency may be engaging in fraudulent activities.
Answering the questions truthfully and carefully analyzing the service provider can help protect you from potentially losing your crypto assets and investments.
Engaging with service providers that operate illegally provides unnecessary risk and often leads to the loss of all invested funds.
Where to Report Fraud?