Known Scams

Known Scams

There are many types of crypto scams and we want to make sure our customers are prepared in the event they find themselves in any of these situations. Crypto exchanges aren’t reversible. Since the transaction doesn’t go through a bank, it cannot be reversed or refunded in any way. Here you will read about common types of crypto scams to avoid.

Investment Scams

Investment scams include scam artists who convince you to invest in crypto by promising to increase your returns. These scammers sham you into believing that they are investment managers and will typically reach out to you on social media or other digital platforms. They can also entice you to buy crypto at a low price assuring you that the price will soon skyrocket. The scammer will guarantee gained returns once you transfer your cryptocurrency to them. Beware as we guarantee you will never see a penny of it once you send it. To avoid investment scams steer clear of those who reach out with promising to increase your profit with no risks.

Romance Scams

Romance scams include fraudsters who create a fake online identity through social media or online dating platforms. These scammers will work on establishing your affection and trust and make you believe that you are in a romantic relationship with them. They will fabricate a story saying they work outside of the US or traveling outside of the country to avoid meeting you in person. The scammers will typically invite you to get started in crypto investments through a platform that has increased their gains and entice you to continue to deposit more funds. They will also encourage you to send them crypto to help them pay for critical expenses such as bills, travel, visa, or any other fees to get them out of trouble. To avoid romance scams do not ever send crypto to someone you met online but haven’t met in person.

Impersonation Scams

Impersonation scams include someone pretending to be another person or company for the purpose of fraud. These scammers will contact you pretending to be someone from the organization you work for, the bank, IRS, or even the FBI. They will use convincing information to gain your trust and will even email or text you pictures of doctored credentials or documents. The request varies depending on where they are pretending to call from but nevertheless, the goal of the scammer is to have you send cryptocurrency to them. Companies and government organizations will never email or text credentials and demand any kind of crypto payment. To avoid impersonation scams, never send crypto or transfer digital funds to anyone via a phone call or email who claims to work for your company or a government organization.

Phishing Scams

Phishing scams involve scammers using text or email to trick you and gather your personal and financial information. These messages are often linked to websites or apps that imitate the crypto platforms that you usually use. Once the link is clicked the platform it takes you to has viruses installed to steal your passwords, digital wallet, and access to withdraw the digital funds in your crypto account. To avoid phishing scams, never click on a link sent via email or text from a message that looks like a cryptocurrency company, app, or site.

Utility Scams

A utility scam will include a fake call or text from your gas, electric, or water company saying a bill is due and will threaten to immediately turn off your service unless you pay with cryptocurrency. This is a scam as real utility companies will not call you demanding crypto payments and especially will not text you about shutting off your service. To avoid utility scams, do not ever send crypto to a utility company insisting payment via crypto, or any other digital transfer.