As digital assets have grown rapidly, the number of cryptocurrency scams have increased.
Scammers are becoming increasingly sophisticated in the ways that they deceive traders.
You can protect your crypto assets by understanding how scams like these work.
Pig Butchering Scams
Pig butchering scams are named what they are because they are kind of like fattening up a pig before butchering it.
First, a stranger unexpectedly contacts you and builds rapport. Then, the stranger attempts to establish trust. Then, the stranger tries to convince you to invest in something. Finally, once you have invested in what you think is a legitimate opportunity, the scammer takes everything you invested and suddenly cuts contact with you.
Nadrich Accident Injury Lawyers is a California-based law firm pursuing crypto recovery claims on behalf of clients who were victims of pig butchering scams.
The firm’s founder, Jeff Nadrich, notes that his legal teams are currently representing over 250 U.S. pig butchering scam victims. “This practice is so widespread, we receive daily requests for our services from men and women who have fallen prey to these scams. Several of our clients have lost their savings and retirement funds to these fraudulent operations.”
Be wary of any strangers who unexpectedly contact you then encourage you to invest in something if you wish to avoid falling victim to a pig butchering scam.
Social Engineering Fraud
Scammers often use deceit and psychological manipulation to obtain vital information regarding crypto holders’ accounts. They often convince people they’re dealing with friends, co-workers, community members, tech support, well-known businesses or government agencies.
They typically ask victims to send money or reveal private keys once they’ve gained the victims’ trust.
Be wary of anyone asking for cryptocurrency or a private key.
Fake Crypto Giveaways and Impersonations
Scammers often pose as crypto influencers, successful businesspeople or celebrities, then promise to multiply or match crypto sent to them in “giveaway scams.”
In addition, scammers often pose as crypto exchanges’ security or support teams, contacting crypto owners and trying to trick them out of crypto funds.
Fake Romance Schemes
Dating websites are often used by scammers, who trick victims into thinking they’re in real relationships. Once trust is established, scammers often suggest that victims invest in cryptocurrency opportunities, or transfer crypto to help loved ones in financial emergencies.
Extortion and Blackmail
Scammers often inaccurately claim, sometimes via email, that they have evidence that victims visit illicit web pages such as adult websites. The scammers threaten to release this evidence to the public if the victims don’t share cryptocurrency or private keys with them.
Phishing
Scammers often send emails with links to cryptoholders. These emails often look very official, but actually direct crypto holders to fake websites which ask for their private keys. Crypto funds are stolen once the scammers get a hold of these keys.
Peyman Khosravani is a seasoned expert in blockchain, digital transformation, and emerging technologies, with a strong focus on innovation in finance, business, and marketing. With a robust background in blockchain and decentralized finance (DeFi), Peyman has successfully guided global organizations in refining digital strategies and optimizing data-driven decision-making. His work emphasizes leveraging technology for societal impact, focusing on fairness, justice, and transparency. A passionate advocate for the transformative power of digital tools, Peyman’s expertise spans across helping startups and established businesses navigate digital landscapes, drive growth, and stay ahead of industry trends. His insights into analytics and communication empower companies to effectively connect with customers and harness data to fuel their success in an ever-evolving digital world.
