What are some examples of crypto scams?

Crypto scams can take many forms. Here are a few of the most common examples. Investment scams involve a bad actor enticing people to send their cryptocurrency to the fraudster with promises of “huge gains.” Scammers can play many parts, such as an “investment manager,” a celebrity or even a love interest on an online dating site.

How do you know if a crypto exchange is a scam?

Look for HTTPS. HTTPS—as opposed to just HTTP—in a crypto exchange or wallet URL indicates the site has secured and encrypted traffic, Leinweber says. Getting your money back from crypto scams is tricky. “As transactions on a blockchain are immutable, the likelihood of getting your coins back is pretty low,” Leinweber says.

What is a crypto scam?

Crypto scams are like any other financial scam, except the scammers are after your crypto assets rather than your cash. Crypto scammers use many of the same tactics employed in other financial crimes, such as pump-and-dump scams that lure investors to purchase an asset with fake claims about its value or outright attempts to steal digital assets.