Last year, almost $2 billion was lost in crypto. The very decentralized nature and irreversible transactions of cryptocurrencies expose the landscape to significant vulnerabilities. Retrieving funds post-crypto scam becomes an insurmountable challenge, necessitating vigilance, early detection, and cautious engagement as paramount defenses. Here are the top 10 things you need to know about crypto scams in 2024. For more information, check our ultimate guide.
Emerging Trends in Crypto Scams
Pig Butchering – The New Face of Romance Scams
The rise of pig butchering, also known as romance scams, is a cause for concern. This type of scam utilizes emotional manipulation on social media or dating apps to lure in victims. Scammers create fake identities and develop relationships with victims before steering the conversation towards investments. Reporting of such scams is hindered by victims’ reluctance, leading to significant underreporting.
Continued Threat of Investment Scams
Crypto investment scams continue to be prevalent, with a reported 23% increase in 2023. Scammers entice victims with promises of high returns and quick profits, but lack transparency about fund utilization and underlying mechanisms. Legitimate projects, in contrast, provide detailed information about their goals, technology, and the team involved.
Rise in Phishing Scams
Phishing scams targeting crypto users through deceptive emails and links drained $300 million in 2023. Incidents of phishing attacks have been on the rise, with recent notable cases involving MetaMask, Blockstream, and Trezor wallets falling victim to new and hazardous phishing tactics.
The Emergence of Double Scams
As a result of more investment scams leading to court convictions, other fraudsters are now targeting the victims seeking recovery. The rise of “double scams” adds complexity to crypto fraud as victims face a second wave of scams from firms posing as recovery agents, promising to reclaim lost funds for a fee.
Protecting Yourself from Crypto Scams
Exercise caution with promises of big profits, double investments, or free money.
Be wary of communication errors and discrepancies in information.
Avoid transactions with unclear details or vague terms.
Stay alert for fraudulent contracts and manipulation tactics.
Question unusual endorsements from influencers and conduct thorough research.
Adopt vigilance and due diligence before considering any investment opportunity in the crypto space.
