What to Watch Out for When Dealing With People
When you’re navigating the world of crypto, it’s crucial to be aware of the various scams that individuals, not just teams or projects, might try to pull on you. Scammers in crypto communities can be incredibly convincing, and understanding their tactics can help you protect yourself. Below, we’ll go over some of the most common scams you might encounter from regular people and how to avoid falling victim to them.
Fake Investment Opportunities
One of the most prevalent scams you’ll come across involves people offering “high-profit” investment opportunities. They may claim to have inside information, show fake screenshots of massive gains, or spin up success stories about how they turned small amounts into huge profits. The catch? They ask you to send them crypto to get started. Once you do, they disappear.
How to Avoid: Be skeptical of unsolicited investment offers. No legitimate trader will ask you to send funds upfront with a promise to multiply them. Always do your own research and verify everything before making decisions.
Trust Trading Scams
This scam plays on your desire to quickly grow your crypto holdings. A scammer will tell you that if you send them a certain amount of crypto, they’ll double or triple it for you. They often claim to have some “special method” or access to exclusive opportunities. Once you send the funds, they vanish without a trace.
How to Avoid: Never trust anyone who asks you to send crypto with a promise of multiplying it. Always assume that this is a scam, no matter how convincing they seem.
3. Impersonation Scams
A common tactic in Telegram and Discord groups is for scammers to impersonate someone you know or trust within the community. They’ll use similar profile pictures and names, asking for a loan or offering a deal that seems like a can’t-miss opportunity. Scammers rely on the quick pace of chat rooms and the assumption that you won’t verify their identity.
How to Avoid: Always double-check who you’re speaking to, especially if they ask for money. Contact the person on another platform or use known communication methods to confirm their identity before taking action. The golden rule in the crypto world is that nobody in a support role will ever message you first.
4. OTC (Over-the-Counter) Trade Scams
Over-the-counter (OTC) trades often occur between individuals who want to avoid the fees associated with exchanges. In these trades, one party sends crypto directly to the other. Scammers will promise to send funds in return, but after receiving your crypto, they disappear.
How to Avoid: Only use trusted OTC platforms with established escrow services to mediate trades. This ensures that neither party can access the crypto until both have fulfilled their obligations. Use platforms such as Trocador which have proven themselves as reliable.
5. Fake Escrow Services
In some cases, scammers will suggest using an escrow to make a trade safer. However, the escrow service they recommend is controlled by the scammer, giving them full control over the funds once you send them.
How to Avoid: Always use a well-known, reputable third-party escrow service. Never trust an escrow recommended by the other party unless it’s one you’ve personally verified.
6. Phishing Links
Some scammers will send messages with links to fake websites that look like real exchanges, wallets, or DeFi platforms. When you enter your credentials or connect your wallet, they can steal your funds. This tactic is common in social media DMs and group chats.
How to Avoid: Never click on unsolicited links. Always type the URL of a crypto service directly into your browser to ensure you’re going to the official site.
7. Unsolicited NFTs or Tokens
If you notice random NFTs or tokens in your wallet that you didn’t purchase, do not interact with them. These unsolicited assets are often part of a scam, and if you engage with them (by transferring, selling, or connecting to a dApp), you might give the scammer access to your wallet, allowing them to drain your funds.
How to Avoid: Ignore and avoid interacting with any NFTs or tokens that mysteriously appear in your wallet. If they show up, assume they are malicious, and never connect your wallet to a site to “claim” or “verify” them.
8. Social Engineering
Some scammers will try to build trust over time, acting like genuine friends or fellow investors in the community. After they’ve gained your trust, they’ll ask for small loans, invite you into joint ventures, or provide investment advice. Once they receive money or access, they disappear.
How to Avoid: Be cautious about sharing personal information or making financial commitments with people you’ve only met online. Keep personal relationships and finances separate, and don’t let anyone pressure you into making hasty decisions.
9. Giveaway Scams
People in crypto groups often post about fake giveaways where they promise large returns for small crypto payments. The scammer might claim that by sending a small amount of crypto, you’ll get double or triple the amount back. Once you send the funds, nothing happens.
How to Avoid: Legitimate giveaways don’t require you to send money first. If anyone asks you to send crypto as part of a “giveaway,” assume it’s a scam.
Protect Yourself: General Best Practices
- Turn off group invitations on Telegram and other messaging platforms to avoid being added to fake or malicious groups.
- Assume anyone who messages you first is trying to scam you. Legitimate support or moderators will never reach out to you privately unless you’ve contacted them first.
- Verify everything: Whether it’s an offer, investment opportunity, or person claiming to be someone you know, take time to verify through official channels before interacting.
- Don’t click on unsolicited links or trust unexpected tokens or NFTs in your wallet.
By staying vigilant and following these best practices, you can protect yourself from falling victim to the various scams that are common in crypto communities. Always remember: if something seems too good to be true, it almost always is.
