As the popularity of cryptocurrency grows, so do the scams targeting unsuspecting users. Cryptocurrency scams, or crypto scams, are very similar to traditional scams, except they demand payment in digital currency. At Jovia, we want to help you understand how these scams work, how to spot them, and how to protect yourself and your finances.

How do crypto scams work?

Cryptocurrency scams rely on deception, social engineering, and fake platforms to trick victims. Scammers often target individuals they believe may be vulnerable, appealing to emotions such as fear, greed, guilt, or trust. By manipulating these emotions, they convince victims to send cryptocurrency, which is typically impossible to recover once transferred.

Common types of crypto scams:

  • Fake investment scams – These scams promise guaranteed large profits or returns, often using convincing websites or fake testimonials to lure victims.
  • Romance scams or pig butchering scams – Scammers will act slowly to develop personal and emotional relationships over time, earning trust before asking for payments or promising high returns before stealing your money.
  • Crypto ATM Scams – Fraudsters may pose as employees of legitimate businesses or financial institutions, instructing victims to withdraw cash from their bank accounts and deposit the money into a crypto ATM. Once deposited into the scammer’s wallet, the transaction cannot be reversed. 

Cryptocurrency Scam Recovery: 

With decentralization and no central authority/censorship, or regulation, cryptocurrency transactions are generally irreversible once recorded in the blockchain.  This makes awareness and caution critical. Always verify the legitimacy of all requests and remain alert to anything that feels suspicious.

How to avoid and prevent crypto scams:

  • Always be alert and suspicious of unsolicited messages, calls, or emails.
       A. Email: Even though emails can be spoofed, checking the sender's address and hovering over links that don't match the company domain may help narrow down the determination.
       B. Phone: Incoming phone numbers can be spoofed. Ask for the name of the department they are calling from and obtain a ticket number. Hang up and call the "company" back at their official number to get reconnected, referencing their ticket number. Etc.
              i. Threat actors will leverage your leaked or publicly available data on the call to fabricate their authenticity. Your name, email, and address should not be considered personal identifiable information. 
            ii. Urgency: Slow down the conversation. Attempt to ask multiple questions in a row without being interrupted: Ask them the same questions a scammer would ask you. What is their name, callback number, department, ticket number, and available hours? etc. Take note of their tone and demeanor as you escalate the questions.
      C. Text: If you did not initiate a support call, never click any links, never provide any codes to anyone.
      D. Social Media/Messaging platforms: Do not respond to random messages, block unexpected senders.
  • Remember that legitimate businesses will never demand payment exclusively in cryptocurrency.
  • If someone is guaranteeing you large profits and returns, this is too good to be true.
  • Never withdraw or send money to someone you’ve never met. Even if you have met them, always verify that it is really them and not a hacker.

Where to report crypto scams: If you encounter a crypto scam, report it to the FBI’s Internet Crime Complaint Center, the Federal Trade Commission, and financial regulators such as the SEC.  Reporting helps protect others and can assist authorities in taking action against scammers.

At Jovia, we’re here to help educate you on common scams so you can protect your personal and financial information. Visit Jovia’s Security Center to learn more about scams, cybersecurity, and how to keep your personal and financial information secure.