There is a significant amount of money being thrown around when it comes to cryptocurrency, and there’s potential to make massive amounts of money with cryptocurrency if you invest well. Unfortunately, because of the large amount of money in the cryptocurrency space right now, many scammers have entered the field hoping to make quick money off of unsuspecting newbies in the space.
If you want to avoid getting swindled by these scammers, it’s important to be aware of the various scams that are taking place so you can recognize (and hopefully report) them. In this article, I’m going to go over three of the most popular scams in cryptocurrency today so you know what they look like and can avoid them. These scams are the following: phishing scams, social media scams, and ponzi scams/fake ICOs.
Phishing is one of the most popular scams in the cryptocurrency field. You might be wondering, what is phishing and how does it work?
Phishing is when a person attempts to get valuable, usually sensitive, information about an individual. This information can include cryptocurrency exchange passwords, private keys, seed phrases for digital wallets, etc.
Phishing is usually done by setting up a fake website that appears to be legitimate, and having unsuspecting victims enter their information in the website so that the owners of the website can steal that information and take advantage of it.
Why is phishing such a popular scam?
Phishing is incredibly popular with scammers because there is a low barrier to entry to do phishing. Phishing requires minimal technical knowledge, and it is very low investment compared to other scams that exist.
All that’s required to do a phishing scam is registering a domain name as well as an email address, meaning it requires very little money to get started with. Meanwhile, the potential return for scammers is massive. Thus, phishing is becoming increasingly popular.
How do victims fall for phishing scams?
Phishing scams are done the following three ways: Online advertisements and email. Let’s look at these in close detail.