4 Common Cryptocurrency Scams

Cryptocurrency Scams: How To Avoid Bitcoin Investment Fraud

It is time to talk about cryptocurrency scams in this article. Why? The promise of an immediate return can make people eager to embark on cryptocurrency investment. Unfortunately, there are many bitcoin scams online that can could result in a person losing a substantial sum. 

If you’re entering the world of bitcoin, Ethereum, or XRP, you must familiarize yourself with various trading risks. To protect your investment, read about four common cryptocurrency scams and how to avoid them.

cryptocurrency scams

1. Phishing Scams

You’ve likely heard of a phishing scam. It is when a cybercriminal uses deceptive emails to gain access to a person’s private information. For example, they might send an unsolicited email that could appear to be from your bank, PayPal, or a retailer. 

It’s also a rather common cryptocurrency scam, as a cybercriminal will send an email from an address and site that looks identical to your crypto exchange or wallet provider. Once you enter your information into an identical scam site, a cybercriminal could access your account using your details and then steal your funds.

To ensure you never fall victim to a cryptocurrency phishing scam, you must:

  • Never click on a suspicious URL
  • Check the URL is from a genuine exchange or wallet provider’s site
  • Don’t submit your private key.

Report any phishing scams to a new anti-scam hotline to prevent others from falling victim to the online con.

2. Fake Exchanges

It’s also vital to be aware of fake Bitcoin exchanges, as they could be a front to encourage a consumer to part with their funds. For example, they might provide various promotions that could seem too good to be true. Once they have your critical details, they could attempt to steal your cryptocurrency.

It is, of course, important not to overlook questionable promotions altogether. If you click here, you’ll find that gambling promotions and bonuses can top up your funds. However, it would be best if you did your homework to avoid fake exchanges.

For example, you should: 

  • Research an exchange before creating an account – learn where a company is registered, read reviews, and find out more about its team.
  • Don’t pick a random wallet from an app store.
  • Never feel pressured into providing personal information or depositing funds.

3. Unsolicited Phone Calls

While Bitcoin and XRP are new financial technologies, many scammers often undertake traditional cons to steal a person’s funds. For example, you could receive an unsolicited phone call from a person claiming to be from the IRS. They may then attempt to convince you that you have unpaid tax and could face legal action if you fail to deposit an amount using the cryptocurrency immediately.

To ensure you don’t fall victim to the scam, you must:

  • Never trust an unsolicited call
  • If in doubt, call back the IRS on a trusted number
  • Report their phone call

4. Malware Attacks

While you might know a malware program can steal your bank details and credit card information, you could be unaware that a cybercriminal can use similar tactics to access your web wallet and take funds from your account. A scammer could even infect your laptop, desktop computer, or tablet with a cryptocurrency miner.

Ensure you don’t fall victim to a malware scam by:

  • Never opening suspicious email attachments
  • Installing and regularly updating antivirus software
  • Avoiding downloading programs unless they’re from a reputable provider

If you follow the above tips, you could avoid various cryptocurrency scams and quickly grow your funds throughout the years.

Cryptocurrency Fraud: How To Report a Scammer

Warn your family and friends about these cryptocurrency scams by sharing this article on social media using the buttons provided. You can also officially report the scammers or any other suspicious activity in the industry to the Federal Trade Commission using the link below:

Report To The FTC Here

How To Protect Yourself More

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You’ll receive periodic emails – we promise not to spam. Meanwhile, educate yourself with some other fraud-related articles right under this paragraph, so that you can protect yourself in many other aspects and niches. Last but not least, use the Comments section below to expose other scammers.

Here are some must-reads for the end:

Securities Fraud Scam

Sell My Structured Settlement Scam

Pump and Dump Scheme Scam

Gold IRA Investment Scam

Sell Annuity Payments Scam


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