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Last year, almost $2 billion was lost in crypto. The very decentralized nature and irreversible transactions of cryptocurrencies expose the landscape to significant vulnerabilities. Retrieving funds post-crypto scam becomes an insurmountable challenge, necessitating vigilance, early detection and cautious engagement as paramount defenses. Here are the top 10 things you need to know about crypto scams in 2024. For more information, check our ultimate guide
Pig butchering might be biggest scam in 2024
Pig butchering, or romance scams, is gaining more attention as a primary threat. This type of scam uses emotional manipulation on social media or dating apps. Scammers create a fake identity, engaging victims before discussing investments. Victims often hesitate to report, contributing to underreporting.
Investment scams
Crypto investment scams persist, with a 23% increase reported in 2023. Scammers promise high returns and quick profits, but investment scams lack transparency about fund use and underlying mechanisms. Legitimate projects offer detailed information about goals, technology and the team.
Phishing reported more frequently
Phishing scams target crypto users through deceitful emails and links, draining $300 million in 2023. These attacks have been reported quite frequently: MetaMask, Blockstream and Trezor wallets recently faced new and dangerous phishing attacks.
Double scams exploiting recent victims
With more investment scams ending up in court convictions, other fraudsters lean into the victims’ search for recovery. The rise of "double scams" adds complexity to crypto fraud. Victims face a second wave from firms posing as recovery agents, promising to reclaim lost funds for fees.
Simple tips to avoid crypto scams
- Exercise caution with promises of big profits, double investments, or free money.
- Check for communication errors.
- Avoid transactions with unclear details.
- Stay alert for contracts and manipulation tactics.
- Question unusual endorsements from influencers.
- Adopt vigilance and research before considering any investment.