Types of Crypto Fraud

Crypto is exciting, but it can also be risky. You can make money trading crypto, but it’s important to watch out for crypto frauds. 

If you’ve lost your cryptocurrency to a suspected fraud, you’re not alone. Since 2020, illegal crypto schemes have grown 516%, with total losses increasing 82% in 2021 to reach $7.6 billion, according to CNBC.

With such a treacherous crypto landscape, you need experts at KoinTrail to use crypto forensic methods to locate your lost funds on the blockchain. It’s also important to be proactive and familiarize yourself with major crypto pitfalls so you can buy, trade and make crypto transactions safely. 

Victim of Fraud?

The following are leading types of Crypto Fraud:

  • Crypto-Forex scams
  • Fake crypto brokers
  • Loan scams
  • Debt collection fraud
  • Phony bitcoin mining
  • Fake bitcoin wallets and apps
  • Crypto extortion
  • Giveaway scams
  • Crypto-only deposits
  • Social media imposter scams
  • Romance scams
  • Fake ICOS

Crypto-Forex Scams

Sham brokers capitalize on the popularity of cryptocurrency and forex. They may make extravagant promises about profitable forex or crypto trading, or they may allow you to fund your account only with crypto. Not surprisingly, no trading takes place and they take client funds.  Trade only with regulated brokers who give you a selection of payment options.

Fake Crypto Brokers

Whether you want to grow your retirement or college savings or simply want to make some extra money, quick crypto deals that promise huge returns can be tempting. Don’t fall for them! Instead, trade only with licensed brokers who have a solid reputation. 

Debt Collection Fraud

Cyber criminals may gain access to information about your debts. They will contact you and will threaten to repossess your car or other valuables if you don’t pay them in cryptocurrencies immediately with fake interest rates or late fees. Many people don’t find out this is phony until the real creditors contact them about the debt that hasn’t really been paid.

Loan Scams

Debt can spell trouble for many consumers–but fake loans are even worse. These frauds involve an upfront fee paid in digital currencies to people who claim they will find a loan for you with low interest rates. They will keep “searching” for a long time and hope you give up or disappear with your cryptocurrency.

Fake Bitcoin Wallets and Crypto Apps

There’s an app for everything, but unfortunately, many of them are fake. Don’t assume that just any app sold on Google Play or the Apple Store is legit. A fake crypto bitcoin wallet or crypto management app can steal all of your digital currency

Phony Bitcoin Mining

There are plenty of schemes that lure people into the exciting world of bitcoin mining only to disappear with their initial investment. Since so few people understand how crypto mining works, scammers find it easy to fool would-be investors.

Crypto Extortion

This is an extreme case, but consumers should beware. People may claim to have compromising photos of you or sensitive information and will demand cryptocurrency or they will publicly release them. Since many people don’t want to risk calling the extortionist’s bluff, they pay anyway. 

Giveaway Scams

If someone tells you online that you have won a sweepstakes you never entered, beware! Too often, scammers will convince people they have won huge cash  prizes or fancy vacations and offer to release information only with sensitive information or a cryptocurrency payment. Of course, there is no prize. 

Social Media Imposter Scams

Watch out for social media imposter schemes in which someone posting as a celebrity endorses a short-term crypto trading deal or an ICO. They may encourage you to send cryptocurrency for a quick trade, but you may never see the money again.

Crypto-Only Deposits

Cryptocurrency may be a convenient way to pay, but beware of merchants and brokers who refuse to accept any other payment method. Most likely, they want to benefit from the apparent anonymity of bitcoin wallets.

Fake ICOs

You may notice a lot of hype over the next big crypto coin, but did you know that 80% of ICOs are fake? Don’t take a chance on fly-by-night deals, but invest in ICOs only on legitimate crypto platforms.

Romance Scams

It’s fine to find love online, but don’t mix romance and money! If someone is trying to woo you and yet asks for a loan or access to your bitcoin wallet, you can’t dump them fast enough.

Have You Lost Money to a Crypto Fraud? KoinTrail Is the Solution!

Don’t wait, try the KoinTrail solution!. Our self-directed crypto forensic services will identify crypto transactions and identify who is holding your cryptocurrency. Our investigation reports guide official investigations and are the key to getting law enforcement to pursue your claim. Get started with KoinTrain today!!

40 billion dollars in cryptocurrency scams this year alone!

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