Cryptocurrencies Scams And How To Avoid Them

(from dating apps to Elon Musk deep fakes)

Recently we reported a few scam alerts. And jee, it seems today they happen much more often than we’d like. So, Noft Games is here to bring you a concise guide on how to identify crypto scams, what are the red flags, and how to avoid crypto frauds. 

Why Crypto?

Crypto ends up being one of the preferred methods for scammers to collect their funds as:

• It’s new and not yet well known 
• Mass adoption is on the way, and few people know ins and outs 
• It operates outside of any government or institution control

Stick with us to learn what are common crypto scam schemes out there and how to protect your hard-earned money from any of these. 

Warning Signs of Cryptocurrency Fraud

🚩 Random people approaching you with “opportunities of a lifetime” 

🚩 Asking you to pay first to get access to special giveaways 

🚩 Ads calling to a sense of greed and urgency 

🚩 Promising unrealistic returns and enormous profits  

🚩 Asking you for your private data, passwords, or seed phrase

🚩 “Big companies” doing a “stealth launch” for a few selected 

Read more to learn tips on how to not get scammed. 

10 Cryptocurrency Scams To Avoid In 2022

1. Phishing Cryptocurrency Scams

🚩 Emails and DMs in socials promising bonuses, discounts, and whatnot. 

👉 It usually ends up with sending you links leading to fake sites and asking you to submit your private info. Uh-oh 😮 They may even look like a legitimate sender - the exchange or wallet app you’re using. 

1. Imposter or Impersonation Cryptocurrency Scams

👉 Scammers often use high-profile people and crypto-related influencers to advertise their shams. If you’ve seen “Elon Musk” promising a 30% income from your crypto investment, you've probably seen a deepfake. 

1. Investment or Business Opportunity Scams

🚩 “Trading gurus” offering you:

•   “amazing investment opportunity”
•   “guaranteed” big returns
•   “huge profit” in short-term 

is a 100% scam. Any advertisement that’s too good to be true, promising unreal profit, indeed, is too good to be true. 

☝️ Crypto’s main idea is to make you a real owner of your finances, so trusting other people is contrary to this idea of crypto. 

1. Giveaway Cryptocurrency Scams

🚩 Promise 2x drops in exchange for your deposit 

👉They generally ask you to make a deposit, say they’ll double the amount, and send it back. In fact, they never do. 

1. Employment Cryptocurrency Scams

🚩 Offering highly profitable job, but… you have to pay for the training course first 🤔 

👉 Once you do, they run away with money and disappear 🤷‍♀️

1. Blackmail or Extortion Cryptocurrency Scams

👉 Finding or fabricating sensitive info about you and urging you to send them crypto; otherwise, they threaten to reveal that information. 

1. Fake apps and websites

👉 Apps that mimic popular exchanges and attract by offering free crypto. 

1. Romance cryptocurrency scams

👉 Find you in Dating Apps. Spend weeks and months trying to set up an actual relationship with the victim and make them believe their sob story - their dog needs urgent surgery, or they’re a crypto investor who needs seed money.  

1. Ethereum
2. Merge
3. Scams

👉 Promise to transfer your ETH to ETH 2.0 

⛔️ Be aware: ETH remains the same. The process went seamlessly for ETH holders, so this is definitely a scam.  

1. Fake ICOs 

👉 Pump and dump projects, made solely to collect money and get away with it.

How to Spot A Cryptocurrency Scam Project?

When doing your research, check the following: 

1️⃣ Who is behind the project?What’s their background? Are they transparent?

❌ anonymous or fake team is a warning sign

2️⃣ Does it have a purpose, real use case, value, and long-term plans?

❌ free money and big returns is a no 

3️⃣ Do they have a detailed white paper?Roadmap?

❌ no such info is a big red flag 

4️⃣ How big is the market cap?

❌ Low capitalization is defo not good

5️⃣ Is the project audited?

How can I Protect Myself from Cryptocurrency Scams?

Dumb mistakes to avoid: 

❌ Never trust random people texting you with any crypto offer. “If somebody approaches you first, that’s almost always wrong” © CryptoHustleLive

❌ Never tap any link from a random sender. 

❌ Any online acquaintance may not be trustworthy to transfer them your crypto funds.

❌ Do not store your private keys, seed phrases, and passwords digitally - be it a web browser, screenshots, iCloud, and the like. 

Wallet security:

✔️ Many exchanges offer anti-phishing codes so that you’re sure the mail is sent by the exchange. So don’t get lazy and set up one!   

✔️Best possible way to protect the seed phrase is to memorize it or write it down on a piece of paper and store it somewhere safe. 

✔️ Use Cryptosteel Capsule or Keystone tablet for maximum seed-phrase security

✔️ Connect the Ledger or Trezor hardware wallet to your software wallet (MetaMask) so that you will need to physically connect it to sign any transaction. 

Stay informed:

✔️ Understand the investments you’re getting into. Study the projects before rushing to invest your money.  

✔️ If you’re feeling it may still be risky, invest money you can actually afford to lose. 

✔️ Educate yourself: there’s a bunch of open resources to learn blockchain and trading basics, including Binance courses, Coursera, and various crypto Blogs.

Stay alert: 

✔️Double check the website URLs. Consult CoinGecko or CoinMarketCap for projects’ official websites and socials. 

✔️ Be careful with credentials, always apply strong passwords to your socials and apps.

✔️ Use 2FA wherever it’s possible. 

✔️ Check the developer information on the AppStore or GooglePlay before uploading apps. 

✔️ Always check what permissions and transactions you’re signing on MetaMask and other wallets. 

That happens with the best of us. All you need is a healthy amount of skepticism. Take a critical eye on everything, and stay informed on the newest crypto scam schemes. Follow our blog or Medium to stay up to date with the latest game updates and crypto news! Be safe y'all!