Glossary of Scams
Education is key to prevention
Phishing Scam: A fraudulent attempt to obtain sensitive information, such as private keys or login credentials, by posing as a trustworthy entity in electronic communication.
Dating App Scam: In this type of scam, fraudsters create fake profiles on dating apps to establish romantic relationships with victims. Once trust is built, they manipulate victims into sending them cryptocurrency or personal financial information under the pretense of emergencies, gifts, or travel expenses.
Pig Butchering Scam: Pig butchering scams involve fraudulent cryptocurrency investment opportunities where scammers promise high returns on investments in fake cryptocurrency projects, but they disappear after funds are collected, leaving investors with substantial losses and no real assets.
Rug Pull Scam: A rug pull scam occurs in the world of decentralized finance (DeFi) when creators of a cryptocurrency project or token suddenly and intentionally drain the liquidity or value of the asset by selling off a significant portion. This action leaves investors with worthless tokens, resulting in substantial financial losses.
Slow Rug Pull Scam: A slow rug pull is a deceptive tactic in which the creators of a cryptocurrency project gradually reduce the value of the token over an extended period rather than executing a sudden and dramatic exit. This strategy aims to delay investors' realization of the scam while extracting funds over time, eventually causing significant losses.
Ponzi Scheme: A fraudulent investment scheme that promises high returns to early investors but pays these returns using the capital of newer investors rather than legitimate profits.
Fake Recovery Service Scam: A fake recovery service scam preys on individuals who have fallen victim to cryptocurrency-related frauds, such as scams or hacks. Scammers pose as recovery experts or agencies claiming to help victims retrieve lost funds. They often request upfront fees or sensitive personal information, promising to recover the assets but ultimately disappear after payment, leaving victims with additional losses
Pyramid Scheme: Similar to a Ponzi scheme, this scam relies on recruiting new participants who invest money and recruit others, creating a pyramid structure. Returns are paid to earlier participants, and the scheme collapses when recruitment slows.
ICO (Initial Coin Offering) Scam: Fraudulent initial coin offerings that entice investors with the promise of a new cryptocurrency but disappear after raising funds, leaving investors with worthless tokens.
Fake Exchange Scam: Bogus cryptocurrency exchanges that deceive users into depositing their assets. These platforms often lack security measures and can lead to significant losses.
Crypto Pump-and-Dump: A coordinated effort to inflate the price of a cryptocurrency through false or misleading information, followed by selling off assets to profit, causing the price to crash.
Mining Investment Scam: Scammers offer the opportunity to invest in cryptocurrency mining operations or equipment, promising high returns but never delivering on their promises.
Tech Support Scam: Scammers impersonate cryptocurrency wallet or exchange support teams, convincing users to grant them remote access to their devices and steal their assets.
Celebrity Impersonation Scam: Fraudsters create fake social media profiles or websites posing as celebrities, requesting cryptocurrency donations or investments from their followers.
Fake Token Sale: Scammers launch fake token sales, often using misleading advertising and false endorsements to trick users into purchasing non-existent tokens.
Impersonation Scam: Criminals impersonate cryptocurrency project leaders or team members to gain trust and solicit investments, often using cloned websites and social media profiles.
Airdrop Scam: Fake cryptocurrency airdrops promise free tokens but require users to provide sensitive information or pay a fee to claim their rewards.
Malware and Ransomware: Cybercriminals distribute malware or ransomware to steal cryptocurrency wallets or lock users' devices, demanding a ransom for decryption.
Crypto Margin Trading Scam: Fraudulent platforms offer leveraged trading but manipulate prices, liquidating users' assets when their positions are profitable.
Signal Group Scam: Fake signal groups provide trading advice and charge fees for their services but often provide inaccurate information, leading to trading losses.