We’ve all heard of phishing. It involves a phony identity to hide criminal activity. In this case, someone will pretend to be someone you know (they may have hacked a friend’s social media account). Whether they are impersonating a friend, a government official, a celebrity or a customer service, their goal is the same–they will try to get personal information or convince you to transfer crypto funds to their wallet. 

Many people look for love online. However, in some cases, it’s like the Wilie Nelson song, Looking for Love in All the Wrong Places. There are many fakers out there pretending to offer romance. They may present an ideal picture of themselves with fake photos. However, the topic turns to money inevitably. They may claim they need to pay a charge to release the remainder of their funds. In any case, once they receive their money, they may either request more at some point or disappear. 

We hear of terrific deals online. Many of these are frauds. However, some may be hard to resist. A public figure, YouTuber, celebrity, or a complete unknown may use their influence to generate interest in an NFT or a new crypto coin. However, after people invest, the asset is never heard of again. The celebrity won’t mention it or will disappear entirely. 

The most recent and high-profile example of a crypto Ponzi scheme is the FTX and Alameda Research fiasco created by Sam Bankman-Fried, who is now facing fraud charges. A Ponzi scheme isn’t a fly-by-night operation. Instead, they cultivate relationships and give a false appearance of trust. People are in denial that they are being cheated. No actual trading goes on–withdrawals are funded by deposits from other people. When everyone wants to withdraw at once during a crash, that’s when the Ponzi scheme comes to light. 

It’s sad that when someone is simply applying for a job, they can make themselves vulnerable to fraud. Scammers will give fake job offers to get personal information about targets. They may even claim to be an employment agency and will ask for a crypto deposit for their service should the client get the job. They may even claim to need crypto wallet information to pay a salary. However, that’s the last the person hears from the employer. 

The types of crypto broker scams are many and varied. Fake crypto brokers may offer trading of crypto pairs, bitcoin mining investment, or a new coin offering. In the end, they will just keep deposits, show fake trading information, and will refuse to allow withdrawals. 

There are plenty of problems with real celebrities backing what turn out to be crypto scams. Often, fake accounts pretending to be owned by celebrities will tout a new crypto coin or an NFT. These fake endorsements are intended to attract investors or in other words scam victims.

Fake crypto wallets are like phony software and apps. They are simply intended to grab sensitive data and install malware into a device. This is one reason it’s important to be very careful about where you purchase bitcoin wallets and apps.

You may be told that you need to upgrade your software. Usually, if you already have software, this can be free of charge. However, a crypto scammer may demand a bitcoin payment for an upgrade. Always confirm this on a website to verify its authenticity. You may often find that your software company made no request. 

Social media is still a favorite habitat of crypto scams. They don’t have to verify their identities and create fake social media accounts. Also, Facebook, Instagram, Twitter, TikTok and other platforms allow them to generate buzz over some fake crypto trading opportunities and find potential victims.