Cryptocurrency scams have rocked the financial industry since the day Bitcoin rose to prominence and sadly, it is estimated that over a billion dollars have been lost to such scams. At the same time, millions are lost each year to these types of scams. We hope you do not fall victim to these types of scams and therefore we are bringing you this very article which will help you in one way or another to know about many of the crypto scams out there.

These are the types of cryptocurrency scams:

gift scams

It’s incredibly unlikely that someone has a legitimate gift that requires you to send your own money first. On social media, you need to be careful with these kinds of varieties of text messages. They can be derived from stories that may seem identical to the types a person knows and likes, but this will be part of the trick. As for the many responses thanking the accounts mentioned for their particular generosity, they are just fake business accounts or implemented bots involved in giveaway fraud.

fake mobile apps

Once the client installs a malicious application, everything seems to work as expected. On the other hand, these programs are specifically made to steal your cryptocurrency. Within the crypto room, there were many cases where customers downloaded malicious apps whose developers posed as a major crypto company.

In such a scenario, when the user is presented with an agreement to fund the wallet or to receive payments, they are actually sending cash to an address owned by the scammer. Of course, when the cash is transferred, there are no undo buttons.

Pyramid and Ponzi schemes

In a Ponzi scheme, you might notice an investment opportunity with certain returns, which is the first red flag. Generally, you will see this particular scheme disguised as a portfolio management service. Actually, there is no magic formula in the office, here the “returns” acquired are just money from other investors.

In a new pyramid scheme, a little more work is required on the part of the people involved. Usually at the top, the pyramid will be the coordinator. They will recruit a specific number of men and women to work at the particular level below these people, and each of the people, men and women, will get their own number of people, and so on. As a result, you end up with a substantial structure that grows exponentially and results in new levels that are disguised as a pyramid.