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How To Avoid Cryptocurrency Scams

Cryptocurrency scams can occur on several levels, from Fake cryptocurrency apps and websites to fraudulent influencers. These scams are most likely to occur outside the U.S. so victims should report any crimes and local law enforcement to their crypto exchange.

Crypto scams - Refundee helps

Fake cryptocurrency apps

Fake cryptocurrency apps are scams that trick people to deposit their money in a scam account. This type of scam is most common on social media, which is the most popular source for false information. These fraudulent apps use a fake logo, as well as other tricks to trick their victims into downloading and depositing the cryptocurrency in the wallets associated with them.

Fake cryptocurrency websites

Fake cryptocurrency websites are designed to lure new crypto users by offering big investment opportunities. They may convince you that your investment will increase in value, but this is not the case. Once the scammers collect your money, they will shut down the website and take your profits. Fortunately, there are ways such as Crypto scams – Refundee helps to protect yourself and avoid becoming a victim of crypto scams.

False cryptocurrency influencers

There are many fake cryptocurrency influencers online, some of which promote shady investments in crypto. Some of these scammers are not necessarily scammers. There are many of them, and more are popping up all the time. It is difficult for the average person, however, to distinguish between scammers and trustworthy ones.

Money-making Ponzi schemes

You should be aware of the potential risks associated with investing in crypto. For one thing, you should never invest in a scheme that promises high returns without any risk. This is a common sign of a Ponzi scam. In this instance, the promoter will use your investment money to pay interest on others’ investments. In time, the promoter’s funds will run out of money and he will no longer be able to pay you.

Blackmail

The first step in avoiding blackmail in crypto scams is to learn the difference between a threat and a genuine request. Threats are designed to create fear. This primal emotion can cloud your judgement and prevent you making rational decisions. Different people experience fear differently so some may be more vulnerable to threats.

Extortion

Extortion is one the most common types crypto scams. This type of scam uses an email or other medium to demand money from a victim. The scammer might claim they have access to the victim’s computer or that they have installed Trojan viruses. They might also threaten to expose the victim’s private data. The best way to avoid becoming a victim is to report any such activity to the FBI’s Internet Crime Complaint Center.

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