Cryptocurrency scams come in different forms, making it crucial to stay alert to protect our assets.
We’ve got investment scams, luring you with promises of quick riches, and social engineering frauds, where people are tricked into giving away their personal details. Then, there are common threats like phishing attacks and P2P payment frauds – and more.
This article takes a closer look at the key crypto scams in 2023, offering insights on how to spot them and stay safe.
Fake Giveaways and Airdrops
Scammers on platforms like X (formerly Twitter) often pose as known entities, especially since getting verification marks has become more accessible. They lure victims with fake websites and Telegram groups, with odd URLs as key indicators.
Tip: Always verify the authenticity of giveaways on the official websites and approach new accounts or those with few followers cautiously.
Phishing is one of the tactics scammers use to extract sensitive information. Phishing emails also appear to be from legitimate sources, such as a bank, a well-known company, or a contact. These emails aim to trick recipients into revealing sensitive information like passwords, credit card numbers, or other personal data.
Tip: Handle emails with suspicious links carefully; refrain from engaging with or clicking on them.
Address Poisoning Attacks
Scammers employ “address poisoning”, identified by MetaMask in early 2023, by sending small amounts of cryptocurrency to users. They aim for users to mistakenly send funds back to a scammer’s similar-looking account. This scam takes advantage of how addresses are truncated on various websites, allowing attackers to create an address that closely resembles the user’s.
Tip: Be wary of small, unexpected cryptocurrency deposits in your account. Always thoroughly check the details of the receiving address before initiating any transactions to avoid sending funds to a scammer’s account.
Unsolicited NFT Airdrops
Crypto users may receive unsolicited NFT airdrops that seem like vouchers for free money but actually lead to third-party websites designed to phish for sensitive information.
Tip: Do not disclose your 24-word recovery phrase to anyone or enter it on any website or app. Instead of trying to send or burn the unexpected NFT, simply hide it from view.
AI-deep fake scams
Scammers can use AI deepfake technology to generate convincing videos and audio recordings that mimic famous individuals. These deceptive videos are used to promote various cryptocurrency frauds, like the deepfake video of Ripple CEO Brad Garlinghouse promoting a bogus XRP giveaway.
Tip: Treat schemes promising “easy money” as hoaxes and avoid sending crypto or providing wallet access to unknown entities.