3 social media crypto scams you should be aware of
No investment can guarantee you a profit. You will be able to evaluate how well an investment has performed only post factum. However, there are many offers in the world of crypto that, although sounding tempting, have almost a 100% chance of ruining an investor.
Giveaway scam
This type of fraud is called by different names. Some people call it “Bitcoin doublers”, and others – “giveaways”, but the scam most often operates on the same algorithm:
1. Scammers create a fake celebrity or brand account on social media.
2. They offer to send a cryptocurrency to their wallet, while promising to send back twice as much.
3. As soon as users send their coins to the address, they lose them forever (what a surprise).
An offer to participate in a giveaway by “Elon Musk”. Source: Twitter
Although this type of scam may seem trivial, it should not be underestimated. In 2021, scammers used Elon Musk’s appearance on the TV show SNL to bilk users out of $10 million through fake giveaways of BTC and DOGE on Twitter and YouTube.
It is worth mentioning that sometimes there are legitimate giveaways on social media done by large brands for advertising purposes, so it can be difficult for a new user to distinguish between a real promotion and a scam.
You should always double-check any promos on the company's official websites and verify the authenticity of the celebrity on the brand's Twitter account.
It is generally advisable to never send your money to unverified people on the Internet.
PancakeSwap scam on Telegram
With the advent of decentralized exchanges and the ability to quickly create and list their tokens on these DEXs, scammers have got a new tool for illicit enrichment. This scam works as follows:
1. Fraudsters create new or buy an existing telegram channel dedicated to crypto trading (pump groups, signals groups).
2. In their channel, they offer a “unique opportunity” to earn money – to buy a token on a DEX before a pump, or before it gets listed on a centralized exchange.
3. Users who are confident that their favorite analyst is giving them a good trading recommendation buy this coin.
4. Once they swap their crypto for the new coin, they realize that they can't swap it back and can’t sell it. There is nothing they can do with this shitcoin, and the scammers run off with the money.
Groups promoting scam tokens often look like this. Source: Telegram
The latest major example of such a scam is the Trader Issa channel (60,000 subscribers), which promoted the TECH token created on PancakeSwap. This time, the scam looked much more plausible, and within a few days, the con artists managed to steal more than $1.7 million from gullible investors.
Gullible investors have invested more than $1.7 million in the TECH token in a few days.
If the channel you are following offers you to buy an unknown token on a PancakeSwap or BSC exchange and promises you huge profits, they are trying to lend themselves to your money. Never buy these coins and never follow any links.
You can also help other users avoid falling into this trap – you can report such channels. If enough people report the channel, it may be flagged as a SCAM.
Crypto catfishing
Catfishers create fake accounts of “successful traders” or celebrities and send private messages to users on their behalf. Nevertheless, there is a 1 in 1000 chance that you get a unique opportunity: for example, Busta Rhymes started collaborating with his NFT artist by simply DMing him on Twitter. But in the remaining 999 cases, it's the fraudsters trying to steal your personal data or money.
An example of a scam message. Source: Telegram
In order not to fall for catfishing, there is some simple advice – you should never click on any links from strangers, and you should never send them your money. You need to remember that most users who text you about crypto are trying to deceive you. You should always double-check all information on the account that sends you private messages.
Pyramids and scams are always built on big promises and unjustified expectations. One of the most important rules in the crypto market is that if something sounds too good to be true, it probably is. If you are promised mountains of gold and luxurious life in return for a small investment, there is a high probability that someone is trying to cheat you.
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