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What Are the Most Popular Crypto Scams to Watch For in 2023

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    May 16, 2023 2:34 AM EDT

    What Are the Most Popular Crypto Scams to Watch For in 2023

    The number of financial scams for consumers to avoid was already nearly endless, but this figure exploded when digital currency — also called cryptocurrency — became mainstream. According to the Federal Trade Commission (FTC), more than 46,000 people reported losing over $1 billion in crypto to various scams from January 2021 through June of 2022, and that figure only includes people who willingly shared this information with authorities.To get more news about WikiBit App, you can visit wikifx.com official website.

    The fact is, consumers tend to know very little when it comes to how digital currency works or how to keep their digital assets safe. And since cryptocurrency payments do not come with any legal protections or government assurances, crypto scams are especially attractive for thieves. Also note that there's no bank or other centralized authority to flag suspicious crypto transactions, and that all crypto transfers are irreversible. With these details in mind, it's easy to see why the industry is ripe for fraud.

    If you are interested in investing in crypto or you have digital assets already, you'll want to know how the most common types of crypto scams work, how to spot them and what you can do if you become a victim. Read on to get an overview of the most common crypto scams authorities are seeing right now, plus how to spot them early.

    Crypto scams to watch out for in 2023
    Scammers are incredibly creative when it comes to luring you into a trap or getting you to share your personal information. For that reason, many crypto scams involve some type of impersonation, along with a selection of carefully crafted lies that are often tailored based on the victim they're targeting. The most common types of crypto scams perpetrated right now include the following:

    Blackmail and extortion scams
    The Federal Trade Commission (FTC) says some scammers will claim they have embarrassing personal information, including your own photos or videos, to lure you into a trap. They will typically threaten to make the information public, but with the promise of keeping your information private if you do what they want. Their demands always seem to be the same — you can make the problem disappear if you send them a crypto transfer right away.

    According to the FTC, you should report blackmail and extortion scams to the Federal Bureau of Investigation (FBI) immediately. Also, don't send the thief any money, and don't communicate with them at all.

    "Business opportunity" scams
    This scam can play out in a number of ways, but it typically takes place when someone contacts you with a business opportunity with the promise of helping you grow rich. In some cases, scammers get you to fork over your crypto by telling you they can provide you with exceptional returns, even doubling or tripling your crypto assets overnight.

    Either way, you should know that there's no such thing as "guaranteed returns," and that's especially true when it comes to digital assets. If someone contacts you and says they can work wonders with your crypto and make you wealthy in a hurry, don't reply.

    Fake job listing scams
    In other scenarios, thieves will create fake job listings or send unsolicited job offers in order to lure new victims to their scheme. The "jobs" they're hiring for are often in the crypto field, including things like crypto mining and recruiting other crypto investors.

    Either way, these jobs all have one thing in common — you have to make a payment in crypto to get started. The scam can take on many forms from there. The scammer might convince you to make additional payments, or they'll make a deposit in your bank account and ask you to send them cash only for their original deposit to fail.