In recent years, cryptocurrencies have become increasingly popular, and with this popularity, the number of crypto scams has also increased. Crypto scams come in different forms; some involve phishing scams, Ponzi schemes, and ICO scams. In the latest crypto scam, over 14,000 people were duped to invest money in fake tokens, with the scammers making a total of $6.4 million.
The scam involved creating fake tokens and promoting them as legitimate cryptocurrencies through social media platforms such as Twitter, Telegram, and Facebook. The scammers used fake profiles to promote their scams and even created fake news articles to lure unsuspecting investors.
These fake tokens were promoted as offering great returns on investment. Investors were told that by buying these tokens, they would get a huge return on investment in a short time. The scammers promised that the tokens would be listed on major exchanges, and their value would skyrocket, leading to massive profits for early investors.
To appear more legitimate, the scammers also conducted fake airdrops, where they would offer free tokens to people who followed certain instructions. These instructions would often include following them on Twitter or joining their Telegram group.
Once investors bought the tokens, the scammers would disappear, leaving investors with worthless tokens. In some cases, the scammers would even sell the tokens on legitimate exchanges for a profit before disappearing altogether.
The scammers used various tactics to make investors believe they were legitimate. For instance, they used social engineering tactics to make their stories more believable. They would use fake pictures and names of CEOs, investors, and even celebrities to make their scams look more legitimate.
Moreover, they would use fake news articles and social media influencers to promote their scams. By using influencers with large followings, the scammers could reach a broader audience and convince more people to invest in their fake tokens.
The scammers often targeted people who had little knowledge about cryptocurrencies or investing in general. These people typically had little experience with cryptocurrencies and were more likely to fall for these scams. The scammers would also target people who were eager to make quick money, promising huge returns on investment in a short time.
Despite the fact that these scams have been widely publicized, people continue to fall for them. To avoid being a victim of such scams, investors should always do their own research before investing in any cryptocurrency or token. They should also avoid investing in projects that promise unrealistic returns and conduct extensive research on companies before investing in them.
Investors should also be wary of any investment advice they receive on social media or from unverified sources. They should verify any claims made by these sources before investing in any project.
Furthermore, investors should avoid investing in tokens that have not been listed on reputable exchanges. By only investing in tokens listed on reputable exchanges, investors can verify that the project has undergone a rigorous process and has been vetted by the exchange before listing.
Lastly, investors should avoid investing in tokens that have no real-white paper, roadmap or a practical use case in the market. They should invest in genuine projects with real business models, which show the team’s commitment. This way, investors can avoid falling victim to scams that often promise huge profits but deliver nothing but losses.
In conclusion, the crypto industry is still in its early stages, and scammers are taking advantage of the lack of regulation to defraud unsuspecting investors. As the industry grows, it’s essential that investors remain vigilant and conduct extensive research before investing in any project. By doing their own research and carefully vetting projects, investors can avoid falling victim to these scams and protect their hard-earned money.
The rise of cryptocurrency has brought about an unfortunate increase in fraudulent activity. The latest scam involves fake airdrops, which have resulted in the loss of around 3,234 Ethereum (ETH) worth over $6 million in the past nine months.
According to a recent report by AegisWeb3, these scams have defrauded 14,605 people between August 2022 and May. These phishing scammers typically send links asking unsuspecting users to claim airdrops. However, once individuals connect their wallets to these sites, their wallets are exploited, and their funds are drained.
The most profitable drainer reportedly gained 1024 ETH from 1,714 victims, while the scammer with the most victims stole 302 ETH from 2,137 addresses. The recent proliferation of memecoins has allowed scammers to create fake tokens with the name of the original coin to give the impression of free airdrops.
One such scammer reportedly used on-chain functionality to create an illusion that PSYOP creator eth_ben was airdropping the memecoin to the public. However, upon closer inspection, the link led to a phishing website.
These scammers prompt users with messages containing words like “Approve,” and when users click on Approve, they unknowingly transfer all their assets to the phishing contracts. The most popular tokens subjected to these scams include Blur and Arbitrum (ARB).
This increase in fraudulent activity highlights the importance of due diligence when dealing with cryptocurrencies. It is essential to verify the authenticity of any offer before committing any funds. Individuals must take security precautions to ensure the safety of their assets in the cryptocurrency world.
In conclusion, the popularity of cryptocurrency and its decentralized nature have, unfortunately, made it an easy target for fraudsters. The rise in fake airdrops highlights the need for caution and due diligence when it comes to investing and trading in cryptocurrencies. As cryptocurrency becomes more ubiquitous, it becomes paramount to take the necessary security measures to protect oneself from fraudulent activity.