Many investors and miners managed to understand the profitability of this type of investment. They become interested in working with crypto currency and trying to make money on it on their own. But, like everything that attracts public attention, scammers who want to cash in on unsuspecting people are also interested in cryptocurrency.
Crypto Scams That Actually Happened
There are quite a few ways for such a deception, and most often, beginners who are not at all savvy in security rules and are inspired by the success stories of cryptocurrency investors fall for it. There are the main ways of cheating when exchanging ETH to ZEC or doing something else.
1. Fake resources
This method of cryptocurrency scam has become very popular at the peak of cryptocurrency popularity. The essence of the method is that scammers create fake websites. Its name and address are very similar to the name and address of some well-known cryptocurrency exchanges. The differences can be minor:
- A replaced letter;
- A dot somewhere in the middle of the name;
- Just a very similar company name.
Like most cryptocurrency scams, fake sites are geared towards novice users. Such people are not yet experienced enough in working with financial technologies. Therefore, when they come to the market, they can easily get confused in the abundance of similar crypto-names and simply don’t understand that they are fake.
2. Cheating in mobile applications
Fraudsters have begun to practice this type of user deception quite recently. However, it can also cause quite serious damage to the cryptocurrency wallets of unsuspecting users. Despite the information about such scammers, it can be difficult to identify them or predict new theft cases through applications.
One thing is clear: you shouldn’t rush to download a new application if it is unknown to you. But at the same time, it is “popular” among users. An example of such false popularity can be inflated ratings and many extremely positive comments, which may even turn out to be custom-made.
3. Deception on authority
It is also quite difficult to identify the type of fraud. The bottom line is that scammers try and pretend to be real professionals. Users will not even suspect that a reputable site or person is a scammer. Then such scammers simply disappear after raising funds in various ways.
If you are thinking about attending an event, it is better to double-check the information about it on the site where this event is advertised and tickets are sold. It would be best to visit the social networks of guests. Usually, they announce their presence at events of this kind. But you can also specify the venue of a particular forum and send them a request. If the event is genuine, the site administration will be happy to confirm this.
4. Fake cryptocurrencies
Even though it is almost impossible to counterfeit most cryptocurrencies (especially if we are talking about such giants as Bitcoin or Ethereum), in some cases, it is still possible to bypass the security system. So, in September 2018, messages about a fake EOS cryptocurrency appeared on the network. Then it was reported that scammers were able to create a fake token, exchange false assets for real ones, and even withdraw them to the anonymous exchange crypto website.
The fraud was noticed rather late. As a result, the total loss amounted to about 58 thousand dollars. Such an operation became possible due to the vulnerability of the EOS platform. The fraudsters were able to create a cloned token, which couldn’t be identified as fake promptly due to the lack of smart contracts on the platform.
Now you know about the most popular scams, so you can avoid them.