Some usual cryptocurrency scams in 2022 : Cryptocurrency

Cryptocurrency has no doubt become a new popular technology in the fast-moving digital world. Many people have become millionaires with it. But not to forget not everything is green here. This technology always carries a risk of scams. There has been a rise in the cases of cryptocurrency scams wherein thieves are not confined to just applying the same old methods but have also started working on newer methods to get success in stealing money from the users. Some of the latest scams include Ponzi schemes, phishing, and rug pulls. Today we are going to highlight some usual cryptocurrency scams in 2022.


Usual cryptocurrency scams in 2022


Phishing scams


Phishing scams have been much more common and are still on the rise. Scammers play a smart trick in using emails and sending malicious links to websites that are not real or say authentic. The main objective here is to gather key information about a cryptocurrency wallet. Hence, it is better not to click on the link that comes in your email and mention your secure information. Straight away visit the site, without thinking about how legit a website or a link is. This is how you can avoid phishing scams.


Bitcoin fake investment schemes


Next comes Bitcoin’s fake investment schemes. In this trick, scammers request an upfront fee. And then they steal that money very easily. After that, they also ask a person to send his details, for transferring or depositing funds. And then it becomes easy for them to access the cryptocurrency of that person. 

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Celebrity endorsements


There is one more major investment scam that fools people. These are fake celebrity endorsements. Now it is obvious that when we see a celebrity endorsing an ad promoting a product or a service, people who have been fans of that personality will buy it. But here they commit a blunder. 


Scammers make the best opportunity out of it by taking their actual pics and putting them on fake accounts, advertisements, and articles. They make it appear real as if a celebrity himself is promoting a big financial gain from the investment. So don’t blindly trust these advertisements, no matter if it stars Tom Cruise or Angelina Jolie. It’s all fake. 


Unreal crypto exchanges


In this kind of cheating, scammers fool investors by making false promises of a major cryptocurrency exchange. They also lure them with additional Bitcoin. However, in reality, there is no such crypto exchange but the investor is unable to make out that it is fake, and becomes prey to scams by losing his deposit. So better stick to authentic exchanges like Coinbase, and other genuine exchanges. In that way, you can avoid a fake exchange. 


Romance scams


Dating apps are common these days. People who are alone and don’t have a partner to express love fall take the route of these apps. But little do they know that they are becoming prey to a cryptocurrency scam. These scams incorporate relationships mainly long distances and are strictly online. In such types of scams, scammers, play a clever trick in gaining the trust of the other party. When they receive money in cryptocurrency, dating scammers no longer exist. It is also known as a pig butchering scam. So guys, don’t ruin your life and money by falling prey to such fake dating apps. Hold on for a good time and you will get the right partner for sure. 

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Ritesh Panchal scam issue


If you have been following the crypto news updates, then you must be familiar with Ritesh Panchal’s latest news. In September this man was arrested by Thane police for duping investors in a fake cryptocurrency scam of Rs 250 crore across India. For those who might not be so familiar with this scammer, let us brief them about him. Ritesh Panchal or Ritesh Sikalgir was running a scam and has cheated so many investors across India. 


Ritesh played a smart clever trick in cheating the investors with a collective amount of 44 lakh. He did this by faking 2 crypto names – Magic3x and SMP. It also came out that the accused had four accounts in Mumbai-based banks. Ritesh duped investors by luring them with good returns by doubling up their investment in 10 to 20 months, from his fake cryptocurrency racket scheme. 


After being caught, the scammer now is charged with section 406 (criminal breach of trust), section 420 (cheating), and section 409 (criminal breach of trust by banker, public servant, merchant, or agent). Besides this, Ritesh has also been charged with 34 of the IPC, and section 3 of the MPID (Maharashtra Protection of Interest of Depositors) Act with a local police station per the complaint filed by the investors who incurred heavy loss or were duped. You can search Ritesh Panchal SM trade scam on Cryptoknowmics. 


Money always attracts scams


It has been noticed that where there is a concern for money, it will attract scamsters. So how can cryptocurrency be aloof from it? In 2022 February, Wormhole, a cryptocurrency trading platform suffered a heavy loss of $320 million to cybercrime. Adding on to this attack in 2021, more than $1 billion has been stolen by crypto scammers, as per the report of FTC (Federal Trade Commission). 

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Digital currency: a brief introduction


Briefing a common fact about digital currency, it can be understood as a kind of currency that is stored in a digital wallet. It is up to the owner who can choose to turn currency into cash and transfer it to a bank account. Bitcoin is one such crypto that unmatches itself from a digital currency. 


And it is all because it operates upon the digital ledger technology, blockchain for checking, and does not operate via financial institutions, so it is not that possible to recover from theft. Even though cryptocurrency is a new monetary concept, still, it has been found that thieves manage to dupe investors through old tricks. 


Ending note


Beware of scams, ask an expert whenever feel some doubt about anything. 

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