Introduction –

Bitcoin, Ethereum, Dogecoin, and hundreds of other Cryptocurrencies are favored in the online market, and a sensible investment may profit handsomely. The perspective of quick riches, on the other hand, may distract some people from the risks, enabling fraudsters to bait them into schemes.

The Term Cryptocurrency –


The US Commodity Futures Trading Commission defines the Cryptocurrency as a digital depiction of value. It is not controlled by any government/bank. However, this virtual money may be used to conduct transactions and exchanged for US dollars or other conventional currencies.

The value of virtual currencies is entirely dependent upon supply and demand, as there is no government regulation. This may cause significant market swings, resulting in big gains or losses for investors. Also, when compared to traditional financial assets such as stocks, bonds, Bitcoin investments are subject to much less governmental oversight.


The Federal Trade Commission (FTC) received almost 6,800 complaints regarding Cryptocurrency investment schemes from October 2020 to March 31, up from 570 the previous year at the same period. The stated losses more than doubled to moreover than $80 million.

Some of the most common cryptocurrency-related scams to be aware of are listed below.

1. Phishing-Based Scams

Phishing is a popular scam in which a fraudster attempts to get personal information such as your name, address, Social Security number, and passwords from you. Phishing scams may take many forms and start with a seemingly inoffensive phone call, text message, or email. On forums, chat apps, and social media platforms, scams linking Cryptocurrencies are common.

The fraudster will often pose as another individual, such as a government official or a company representative. They’ll next try to get you to provide your details.

2. Scams Offering Giveaways

High-profile celebrities and businesspeople often debate Cryptocurrency legitimately online. Giveaway scams make use of this well-worn pattern to extract money from unsuspecting victims. Scammers often impersonate well-known people, sometimes creating social media profiles complete with their pictures and bios.

3. Fake Investments

Be on the alert for phony investment offers. The hackers may direct you to a website where you may learn more about the potential “opportunity,” or they may demand money. Scam methods may be arranged on top of one another or merged to produce new tricks.

How To Report Cryptocurrency Scams?

You can report a Cryptocurrency fraud to the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission of the United States (SEC) (SEC).

You should also inform the Cryptocurrency project or platform that the scheme is based on. Suppose you are contacted on a messaging or social networking site. In that case, you have the option of reporting the user to a group administrator, who may either ban the user or warn others about the person who tried to defraud you.

• Keep an eye on your identification and keep it secure.

Many hackers do not need sophisticated hacking or technology to commit their crimes. Instead, they rely on social engineering, in which the agent convinces you to provide personal information or send money to them. Because bitcoin transactions are irreversible, victims may find themselves with few alternatives.

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