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1. Never send money to receive a package.
Scammers prey upon consumers who believe they are purchasing legitimate goods and services. Scammers take advantage of consumers who fall prey to scams such as cryptocurrency mining or gift card schemes that appear natural but end up being fake, using various techniques such as sending them to Bitcoin ATMs with instructions on how to convert cash to cryptocurrency.
ATMs for cryptocurrency transactions can be found anywhere from laundromats and gas stations to shopping malls, providing criminals with an easy way to take advantage of cryptocurrency’s less transparent nature compared to cash transactions and its storage in digital wallets that are unprotected by central banks.
Criminals targeting crypto communities on social media or instant messaging apps often pose as representatives from crypto exchanges, mining operations, or new coin projects, promising unrealistic returns in return for investment in their projects – repeatedly promising unrealistic and guaranteed returns despite warnings by scammers. They then make attempts to convince members of these communities that investing in these projects would be worthwhile by appealing to fear of missing out (FOMO). Some will succumb to FOMO pressure to make an investment decision despite scammers’ warnings against doing so and send their money anyway despite scammers’ warnings against doing so.
Another form of cryptocurrency fraud occurs when con artists utilize dating apps to trick victims into investing their hard-earned money. Scammers use flirtatious messages until they can switch the topic over to cryptocurrency, making it much harder for police and companies to track. Once that has occurred, they’ll convince their victims to transfer funds into their digital wallet, which law enforcement authorities or company investigators cannot reach.
Romance scams are an increasingly prevalent and growing form of crypto fraud. A criminal can engage in such schemes by pretending they have fallen in love with their target and then asking for money; alternatively, they might make up an illness story and claim they need expensive treatment, then bemoan their financial difficulties while lamenting they wish they had more funds available.
These scams can be especially hazardous to older adults. One elderly couple in northern Michigan lost $350,000 this summer after being led to believe they owed Apple Support money for an iPhone refund.
2. Always do a reverse image search of a profile picture.
Reverse image searches are an invaluable way to verify who you’re communicating with online, mainly if they use stolen photos, as profile pics are often taken without permission by catfishers and romance scammers. Unfortunately, however, sophisticated people can edit their image so it doesn’t show up in reverse image searches, making it hard to spot fake profiles.
Scammers are preying on dating apps and social media websites for victims, so be vigilant! Do not send money for packages sent from unknown senders, nor wire funds directly to people you don’t know, as these could all be signs of crypto scams. Before sending any funds, it is always advisable to perform a reverse image search using their profile picture, as this will provide added assurance before proceeding further with sending money.
3. Always ask for references.
Crypto scams are an all too familiar means by which individuals lose money. Scammers typically target members in cryptocurrency communities via social media or instant messaging platforms, posing as an established exchange or mining enterprise and promising unrealistic returns at guaranteed rates to unsuspecting investors. Fraudsters also create fraudulent websites and apps in order to lure victims.
Scams involving romantic relationships involving cryptocurrency have gained widespread prominence within the crypto space, particularly among women. Con artists will use dating apps like Tinder or social media platforms like Instagram to locate potential victims before building friendships and romances with them online before encouraging them to invest via a fraudulent app.
Scammers sometimes take on the appearance of celebrities or high-profile businesspeople in order to sell their fraudulent opportunities, using images without permission and outrageous claims to convince people that investing in their projects would be worthwhile.
Pump-and-dump schemes are another common crypto scam, where fraudsters purchase obscure coins at low costs and artificially boost their value through social media promotion. This scheme often traps unwitting consumers into sending large sums of money for investments, which later crash due to price volatility.
Avoid scams by conducting thorough research before investing in any new project, being wary of heavy marketing, unauthorized images, and outlandish claims, and never sending money via wire transfer or cash reload card, as these payments cannot be reversed easily.
4. Always do a background check.
Cryptocurrency has quickly become a go-to method of purchase and sale, giving rise to an emerging form of scam where criminals use seduction techniques online to convince their targets to make fraudulent cryptocurrency investments. These schemes have come to be known as “pig-butchering,” wherein criminals first build relationships with their targets before leading them towards a scam crypto platform with high returns that seems attractive before cleaning out their accounts later on.
The FBI reports that cryptocurrency scams are one of the fastest-growing types in the US and target those with investments in digital assets like cryptocurrency. Scammers will typically ask their victims to wire funds or place cash on a prepaid card or cash reload app, as these payments can be more difficult to trace than others, providing scammers with an advantage.
Tech support scams are an increasingly common way for criminals to access your cryptocurrency. Scammers will attempt to convince their victims they have a virus on their computer and try to convince them to pay for services they don’t require or fix an issue that doesn’t exist – often demanding payment in cryptocurrency like Bitcoin so their transactions won’t be easy to reverse in case the victim files a police or other complaint against the scammer.
Romance scams are another popular type of crypto scams. Criminals will typically create fake profiles and start communicating with their target before slowly asking for money using excuses such as medical bills or emergency expenses.
Scams involving dating sites or apps that ask for money should always be treated with extreme caution, as these scams have the potential to do severe financial harm and devastate families. When someone contacts you via dating apps asking for cash, it is always advisable to perform a background check so as to determine who they claim to be and protect yourself from becoming victimized.
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