The most common crypto scams and how to protect yourself from it

Cryptocurrencies have gained enormous popularity in recent years. The mainstream media report worldwide and celebrities wear their NFTs as profile pictures. This activity has not been unnoticed by malicious players and hackers. An overview of the most common crypto scams.

With increasing digitization and new AI tools, it is becoming increasingly important for private individuals to be vigilant and take protective measures. The FBI reported for 2022 losses of more than 2.5 billion US dollars from crypto scams (German = fraud). In order to protect yourself against fraudulent machinations, it is important to know the most common stitches and take steps to protect your own investments. In the following, some of the most common crypto scams are described and tips are given on how to avoid them.

1. Phishing-Scams

Phishing frauds are common in the area of ​​cryptocurrencies and use emails, text messages or social media messages to tempt users to disclose your private information. These messages often seem to come from legitimate sources, such as cryptocurrency exchanges or employees of well -known companies. You may request account details, authentication codes or Seed phrases on, for access to Krypto-Wallets be used. Under no circumstances may the wallet seed phrase be passed on to third parties. The transfer of the seed phrase enables access to all cryptocurrencies stored in this wallet. It is recommended not to save these phrases digitally, but only to store them as physical copies.

To protect against phishing fraud, you should take care of suspicious e-mails or messages, especially from those embedded links or attachments. Move the mouse pointer over the left or right-click to save the address of the links and insert it into a Word document to see the actual target URL. Never release sensitive information in unsolicited messages. Especially not when the message was not expected. Even if the message apparently comes from a reputable source, you should always check the website and the associated social media accounts. Fraudulent websites often change the domain, e.g. when the official website runs under a “.com” domain and the fraudsters create a fake “.org” page. Social media handles are often written immediately, whereby a letter is swapped or sounds similar, for example @fr3derik instead of @Frederik.

Fraudsters also use relatively simple methods to get digital assets. Be careful when using messaging apps like Telegram, where it is easy to get contact information and disguise your identity. You can be sure that messages like “Send me 1 BTC and you will receive 2 BTC back” or “I'm very sorry, but I have lost access to my wallet. Can you please send me XYZ?” Likewise, private messages from alleged “support agents” are always to be enjoyed with the highest caution.

2. SIM swap attacks

In the digital age, smartphones have become an indispensable part of daily life. They serve as a primary connection for communication, banking transactions, navigation and countless other online services. This dependence on mobile devices has also made it a main goal for cybercriminals that have developed sophisticated plans to take advantage of them.

In the case of a SIM-SWAP fraud, a fraudster makes the mobile operator transfer the victim's telephone number to a new SIM card. As a result, the fraudster receives complete control over the victim's telephone number. It enables you to receive text messages, such as codes for two-factor authentication (2FA). Hackers can also pretend to be victims to receive unauthorized access to their financial accounts, social media profiles and other services.

The consequences of a SIM-SWAP fraud can be devastating and range from financial losses and identity theft to emotional stress and call to call. The latest example is that compromised Twitter account of the Secwhere Hacker published an early tweet about the upcoming Bitcoin-Spot ETF, which caused an increase and subsequent price fall. In order to protect yourself from this threat, you should be aware of the fraudsters' tactics and take a protective measure to protect your telephone number and personal data. It is also recommended to never use mobile phone numbers as a 2-factor authentication (2FA), but to download a special app such as Google Authenticator or Authy.

3. fake investment opportunities

Frauds often create websites or social media pages that imitate serious cryptocurrency exchanges or investment platforms. They attract unsuspecting people with promises of high returns, temporary offers or exclusive investment opportunities. These pages are usually new and have not yet received much feedback from users. Twitter (X) is an important source of information that enables you to form a first opinion. If the mood or reviews of a product or platform are negative, this most likely has a valid reason and should be considered before interacting with the app.

In order not to fall into such machinations, you should always get a thorough information about an investment option before investing money. Pay attention to serious reviews, check the authenticity of the website or platform and never rely on unsolicited emails or messages if you would like investment advice.

4. Fake Airdrops or giveaways

Fraudsters also create fake Airdrops Or giveaways that promise free cryptocurrency tokens or prices. This is intended to tempt users to connect their wallets or to provide personal data. Even if there are legitimate airdrops, these frauds often contain malware or transfer users to malignant websites. Just take part in AIRDROPS or giveaways of reputable sources or projects to avoid that you are victims of fake Airdrops. Research the project thoroughly and verify the authenticity of the airdrop before connecting your wallet.

Airdrop tactics can also be sent by sending free tokens or NFTs can be applied to wallet addresses. This leads users to interact with fraudulent websites or contract addresses. This tactics can be easily implemented, since the wallet addresses due to the way the blockchain is structured are open to the public and the receipt of transactions on a non-trustworthy wallet cannot be prevented.

5. Wallet-Drainer

So-called wallet drainers usually use weaknesses in cryptocurrency exchanges, wallets or dapps. As soon as a user connects his wallet with a compromised website or platform and signs the smart contract with its wallet, the user gives permission for everything that is in the code of the fraudulent smart contracts. As a rule, the signature triggers a transfer of all cryptocurrencies and NFTs to a wallet controlled by the hackers.

Wallet drainers can be devastating for the victims. The stolen funds are irretrievably because blockchain transactions cannot be undone or stopped. Fortunately, the transparency of the blockchain enables the tracking of transactions. These wallets, which are controlled by criminals or are contaminated with cryptocurrencies from dubious sources, can be marked. This in turn can make criminals difficult to convert their stolen cryptocurrencies into Fiat. Especially when they have been marked by compliance tools like Chainalysis. Nevertheless, users should proceed with the most important caution when approving transactions on websites.

Protect yourself from crypto scams

Protect yourself from crypto scam by taking the following steps:

1. Only interact with reputable websites
   Always check the URL of a website before entering personal data or connect your wallet. Avoid clicking on suspicious links or attachments in emails or messages.
2. Keep your software up to date
   Crypto wallets sometimes publish security updates to fix weaknesses. Make sure that your software is always up to date to minimize the risk of abuse.
3. Never pass on your private keys or seed phrases
   These are the keys to their cryptocurrency stocks. If you share them with someone, it's like giving away your money. Never put these keys on websites or in messages.
4. Beware of unusual offers
   Mails that claim that they receive high returns, free cryptocurrencies or other unrealistic promises. These are often signs of fraud.
5. Do Your Own Research (DYOR)
   Create thorough research before investing in a cryptocurrency project or participating in an airdrop. Only invest in projects with a strong track record and a transparent team.