Cryptocurrency Scam

It’s easy to get swept up in the excitement of new developments in cryptocurrency, especially when you read about an ICO that promises to change the world.

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Cryptocurrency Scam

The digital currency industry has made a name for itself as an exciting new way to make money, with many people reporting huge gains on their investments. But the industry also presents an opportunity for scammers to prey on their victims.
Scammers will make up stories about how they can double your crypto, claiming that they can “unlock” it or “release” it from a holding pattern. They’ll also send out fake emails asking you to verify your information. These are all scams! The real people who have access to your crypto don’t need to ask for verification—they already have enough information to do what they need to do.
Cryptocurrency is exciting, intriguing… and risky. After all, the whole premise behind Bitcoin is that it’s decentralized—there’s no central authority to regulate it or keep it in check. So if you get scammed, there’s not much you can do, right?

Going About Tracking Your Cryptocurrency

Some of the most exciting things about cryptocurrencies are also the things that make them more susceptible to scams and criminal activity. As you probably know, cryptocurrency is decentralized. It is not regulated by any government or central bank. That means no one has control over it—which can be really exciting for people who like the idea of freedom from government oversight.

The cryptocurrency industry is known for being volatile and rife with scams, so it’s no wonder that the people behind these scams have a harder time getting away with it. 

Cryptocurrency can be a dangerous investment without the right skills. Trustworthy and skilled individuals like yourself will find this article helpful in combing through all the scams out there on the web. We’ve seen people track down criminals using simple methods and make sure that they don’t get away with it. Check out our latest blog post if you’d like to find out how it’s done today!

How Cryptocurrency Scam Works

Cryptocurrency scams are on the rise. The industry has seen a 154% increase in scam reports in the last year alone, according to researchers at Chargeback Pros. And there’s no sign that the trend will slow down. If you’re looking to enter the world of cryptocurrency, you’ll want to be prepared to avoid these modes of attack.

Cryptocurrency scams range from social media schemes where you’re asked to send cryptocurrency to someone in exchange for more—which is never delivered—to more sophisticated attacks on wallet software or exchanges. It’s important that you and your loved ones stay informed about the different kinds of scams that can pop up. Here are some of the most common ones:


Scammers try to get you to send them small amounts of cryptocurrency by promising to return a much larger amount. Don’t fall for this!

Sharing your private key

The work you do with your cryptocurrency is done through a private key, which is essentially a password that gives you access to your account. A scammer can gain access to your private key from an unsuspecting post or email—so never share it with anyone!

Fake wallets

A fake wallet is a program or website that looks like an authentic one but is actually designed to steal your information. If you’re choosing a new wallet, make sure it’s from a reputable developer and has been reviewed by other users.

Spear-phishing emails

These emails look legitimate and direct you toward fraudulent sites in order to steal your information or get you to download malicious software. If you get an email from someone claiming to be with your bank or another company, call them directly rather than clicking any links in the email.

Fake ICOs

ICO stands for ‘initial coin offering.’ It’s a way to raise funds for a new blockchain-based business. But scammers have been creating fake ICOs to trick people into giving them money. Be wary of any ICO that doesn’t have a functioning product yet, is promising huge returns, and isn’t backed by well-known people or companies in the blockchain industry.

Cloud mining scams

Cloud mining is when you buy access to computing power used to mine cryptocurrencies. There are websites that claim they can mine cryptocurrency for you—but they don’t actually have the mining equipment necessary to do it. They may give you access to some cryptocurrency, but not enough to make it worth your while, and then they’ll shut down their website and leave with the rest of your money.
If you want to try cloud mining for yourself, be sure to research the cloud mining company first and make sure it has a physical presence before investing your hard-earned cash.

Fake Exchange

Crypto exchanges are online platforms where users can buy and sell cryptocurrencies using fiat currency or other cryptocurrencies. Fake exchanges look just like real ones, but they’re trying to steal money from unsuspecting users.
These fake exchanges take deposits or transfer information without allowing withdrawals or trades. You can avoid this scam by checking reviews and joining online forums before choosing an exchange.

Fake customer support

Scams on social media and email often present themselves as being from customer service

How To Not Fall For Cryptocurrency Scam

It’s easy to get swept up in the excitement of new developments in cryptocurrency, especially when you read about an ICO that promises to change the world. But it’s just as important to be mindful of what might be a scam or a red flag.
Here are a few things to keep in mind:
  • Watch out for exchanges that don’t have any regulations. Make sure they’re registered with the SEC and that they follow the guidelines set by the IRS.
  • Keep an eye out for scams that want you to “invest early” or give you bonuses for investing early, but which don’t have any proof of concept or working product yet. The most reliable companies will already have something built and working before they start soliciting investments from the public—and if anyone pressures you into investing early, walk away.
  • Don’t engage with accounts that promise absurd returns on investment, such as those that say you’ll earn over 1000% return per month. These are almost always scams, and even if they aren’t, the returns are so implausible that there’s not much point in engaging with them anyway.
  • Set up a separate email address that you use for cryptocurrency exchanges. In the past, if your main email got hacked, the hacker could easily get access to your bitcoin wallet and drain it. If you use a separate email only for your cryptocurrency-related activities, then even if they hack into your main email, you’ll still be protected.
  • 2FA Everything; we do recommend the use of authentication apps like authy or google authenticator rather than using SMS or email for 2fa verification codes.
  • Hackers and phishers are targeting individuals by creating fake cryptocurrency exchanges and trading platforms, luring users with promises of high returns. They may also reach out to you directly via email or social media. The best way to avoid getting caught up in this kind of scam is never giving out personal information or clicking any links that you can’t verify as safe.
  • A lot of people who trade in cryptocurrency get emails and messages saying they can be part of something called “pump and dump.” Don’t fall for this—it’s basically a scam where someone tricks people into buying stock in a company that doesn’t actually exist.
Scammed Or Stolen NFT?

It happens to the best of us—you accidentally send it to the wrong address, or you lose your key. Whatever happened, we'll help you recover it.

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Here are some more tips 

  •  Never invest more than you can afford to lose.
  • They should have a whitepaper or a roadmap that clearly explains their product or service, who’s on their team, and what kind of security they use. If they don’t have one, or it’s unclear or poorly written, it’s not worth investing in.
  • Never accept an offer or payment directly into your bank account—scammers can easily cancel those transactions and leave you with nothing.
  •  Remember: cryptocurrencies are only decentralized if you’re using paper/hardware wallets or another offline wallet option. If you’re trading on a regular exchange (i.e., Coinbase or Kraken), then your money is just as safe as it would be if you were doing a regular trade on the stock market.
  • Cryptocurrencies backed by fiat currency (like Tether) are no safer than the average currency itself—in fact, some of these currencies are even less stable because their value is determined by the issuer rather than traded on an external and independent market.

Let the Journey To Recover
Your Money Begin

Chargeback Pros is here to help you fight back against cryptocurrency scams.

The cryptocurrency scam industry is booming, and unfortunately, it’s making it hard for the rest of us to do our jobs.
Some people think that cryptocurrency scammers only call older people, but we’re here to tell you that’s not true. Cryptocurrency scammers harass people of all ages and backgrounds. If you receive a call from a cryptocurrency scammer, hang up right away.
If you have already been scammed, don’t worry—you can take action! First, report your scam to the state of [your state]. Second, contact your local police department as soon as possible to let them know what happened. Third: get help from the Federal Trade Commission by calling 1-877-FTC-HELP or visiting their website.
We know this can be scary and confusing. We want you to know that we’re here to help you through this difficult time in any way we can.

I am a victim of hackers who stole more than $100,000 from my Metamask account. I have tried many ways to recover my nft and I was in a real mess. Then I found chargeback pros, who helped me to recover my lost nft tokens. Thanks to chargeback pros for their help.

Jameson Green
NFT Scam Victim

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