Scammers are looking to catch crypto investors not paying attention. But their methods aren't that unique. Let's look at the most common ways scammers like to steal crypto and some ways to protect yourself.
Phishing
Phishing is still the #1 go-to for hackers. With phishing, hackers use emails to impersonate crypto exchanges or wallets.
These crypto scams will always contain a link that takes the victim to a scammer-controlled website. The goal is to get rookie investors to click the link and enter sensitive information.
Crypto phishing emails will also try to entice investors with free giveaways or scare them with fake security issues.
Be skeptical of any direct emails you may get. Check the sender; phishing emails usually have a unique sending address. The text in the email may be misspelled and have grammar issues.
If you are still unsure, the best practice is to log on to the exchange or access your wallet in a separate tab.
Rug Pulls
A rug pull is a type of scam where developers abandon a project and take their investors' money.
Rug pulls thrive on DEXs because these types of exchanges allow users to list tokens for free and without audit. Plus creating tokens on Ethereum's open-source blockchain is free and easy.
Scammers will create a token and list it on the DEX, then pair it with Ethereum. Then, they'll start grifting on Discord, Twitter, and other platforms to drive up the hype.
Once a large number of investors swap their ETH for the scam coin, the creators withdraw everything, driving the coin's price to zero.
Rug pull coin prices usually shoot up fast. It could move from 0 to 100X in a day. This trick is designed to drive FOMO so more newbies will invest in the token.
Also, if the development team holds a large portion of tokens, it could be a rug pull.
AI Crypto Scams
Artificial intelligence has allowed scammers to get creative. Scammers use AI chatbots or virtual assistants to engage with rookie investors.
These chatbots provide investment advice, promote fake tokens or ICOs, or offer phony high-yield investment opportunities.
And with the right social media tricks, scammers can use AI-generated content to initiate rug pulls.
Deepfake technology can easily imitate a celebrity or influencer and have them promote a scam coin.
Keep an eye on all crypto-related sites you visit. Carefully type the exact URL into your browser and double-check it. Make sure the website is using HTTPS - there should be a small lock symbol next to the URL.
Like with rug pulls, due your due diligence on all projects you're interested in. Verify the project, its team members, and any endorsements.
Wrapping Up
A scammer's first option is almost always a phishing attempt.
Don't let FOMO cost you money. Take the time to thoroughly research the projects you are interested in. Look for legitimate growth and traction.
Make the websites you use HTTPS and are spelled correctly. Sometimes the difference between keeping your crypto and losing it all is just one letter.
To spot a deep fake, check for blurry or obscure features in hair, skin, or environment. The lighting will look unnatural because the algorithms use clips from different sources.
