The worst cryptocurrency frauds to date (2023)
In Brief
Scammers will often create fake websites that look like legitimate exchanges or wallets.
Cryptocurrency scams are becoming more and more common as the price of Bitcoin and other digital assets continues to rise.
Scammers use a number of tactics to trick people into making false cryptocurrency investments. They even go so far as to engage in fictitious relationships on dating websites like Tinder. Let’s have a look at the largest cryptocurrency frauds to date.
According to a 2022 study by the Federal Trade Commission, victims were really duped out of $139 million last year by cryptocurrency romance scammers (FTC). But there are many different kinds of scams.
The FTC also discovered that between January 1, 2021, and March 31, 2022, more than 46,000 consumers reported losing more than $1 billion in cryptocurrency. Additionally, there are probably more victims out there who did not report their occurrences, so this may only be the tip of the iceberg.
What Are Crypto Scams?
There are many types of cryptocurrency scams, but they can broadly be divided into two categories: those that trick people into sending money and those that trick people into investing in worthless digital assets.
Scammers will often create fake websites that look like legitimate exchanges or wallets. They may also impersonate famous figures in the cryptocurrency community to try to get people to send them money. Some scammers will also create new digital currencies, which they claim are the next big thing. They may promise high returns and get people to invest, but the currency is worthless, and investors end up losing all their money.
Top Crypto Scams
The Bitcoin Code
In February 2022, The Bitcoin Code website appeared online. The site claimed that investors could make huge profits by investing in their new bitcoin mining operation. Victims were asked to send money to a Bitcoin address to get started, but the address was actually controlled by the scammers, and the victims never saw their money again.
The BitConnect Ponzi Scheme
BitConnect was a cryptocurrency investment platform that promised huge returns to investors. The platform turned out to be a Ponzi scheme, and investors lost an estimated $4 million when it collapsed in early 2018.
The Central Investment Scheme
The Central Investment Scheme was a fraud that promised to pay investors returns of up to 1,000% per year. The scheme raised $4 million from investors before it was shut down by the US Securities and Exchange Commission in 2020.
The PlusToken Ponzi Scheme
PlusToken was a cryptocurrency wallet service that promised to pay investors high-interest rates on their digital assets. The platform turned out to be a Ponzi scheme, and investors lost an estimated $2 billion when it collapsed in 2019.
The WannaCry Ransomware Attack
In May 2017, a group of hackers used the WannaCry ransomware to encrypt the files of fraud thousands of victims worldwide. The hackers demanded payment in Bitcoin in order to decrypt the files. While many victims paid the ransom, the hackers did not always provide the promised decryption key. The WannaCry attack is estimated to have caused $4 billion in damages.
How To Avoid Crypto Scams?
There are a few things you can do to avoid being scammed:
Do your research: Make sure you understand cryptocurrency investment before you put any money into it. Be especially wary of investments that promise high returns with little or no risk.
Get referrals: If you’re thinking about investing in a new cryptocurrency, get referrals from people you trust.
Avoid unsolicited offers: Be wary of unsolicited emails or social media messages that promote investments.
Check the website: Make sure the website looks legitimate and is secured with SSL encryption.
Don’t send money to anyone: Only send money to an investment platform or exchange that you know and trust.
Report scams: If you think you’ve been scammed, report it to the authorities.
Conclusion
Cryptocurrency scams are becoming more and more common as the price of Bitcoin and other digital assets continues to rise. Investors need to be careful and do their research before putting money into any investment. If something sounds too good to be true, it probably is. The best way to avoid being scammed is to only send money to exchanges and platforms that you know and trust.
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Disclaimer
Any data, text, or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.
The Trust Project is a worldwide group of news organizations working to establish transparency standards.
Ken Gitonga is passionate about writing. His work involves writing crypto articles on SEO, TAs, News writing, Web3 articles, crypto price prediction, and white paper drafting. Ken is a content writer and marketer. He has worked in the SEO and content marketing industries for over 3 years and has helped businesses grow their online presence and traffic.
More articlesKen Gitonga is passionate about writing. His work involves writing crypto articles on SEO, TAs, News writing, Web3 articles, crypto price prediction, and white paper drafting. Ken is a content writer and marketer. He has worked in the SEO and content marketing industries for over 3 years and has helped businesses grow their online presence and traffic.
