How do cryptocurrency scams work?

How do cryptocurrency scams work? When users log in to a cryptocurrency account in a public location, scammers can steal their private, sensitive information. A scammer can intercept any information sent over a public network, including passwords, cryptocurrency wallet keys and account information.

Can you report a crypto scammer? To learn more about cryptocurrency scams – and how to spot and avoid scams generally – visit and Report scams to the FTC at

What kind of crypto scams are there? 

Some of the most common include:
  • Fake websites.
  • Phishing scams.
  • Pump and dump schemes.
  • Fake apps.
  • Fake celebrity endorsements.
  • Giveaway scams.
  • Fraudulent initial coin offerings (ICOs)
  • Promises of guaranteed returns: No financial investment can guarantee future returns because investments can go down as well as up.

How many crypto projects are scams? Since January 2021, about 46,000 consumers have reported losses of more than $1 billion in crypto payments — with roughly 70 percent being made in bitcoin — to scams.

How do cryptocurrency scams work? – Additional Questions

Will Coinbase refund if scammed?

Here’s the good news up front: Coinbase secures the majority of its digital assets with crime insurance, and will refund you if your account has been compromised. Even if your funds were lost due to negligence or personal error, they might still refund your account.

How much money lost in crypto scams?

New York (CNN) Cryptocurrency scammers have stolen over $1 billion from 46,000 people since the start of 2021, a new Federal Trade Commission report says.

Who falls for crypto scams?

They are mostly younger investors, under 35, who earn high incomes, are well educated and work in engineering, finance or IT. In these types of frauds, scammers create fake coins or fake exchanges.

How do I avoid crypto scams?

Avoiding cryptocurrency scams
  1. Never give support staff (or anyone else for that matter) remote access to your machine.
  2. Never give out your 2FA (2-Factor Authentication) security codes or passwords.
  3. Never accept outbound calls asking for your confidential personal information.

Is crypto airdrop profitable?

A new dashboard developed by Messari data scientist, Yule Andrade, has revealed that selling each of the 10 most significant Ethereum airdrops a week after receiving them would be twice as profitable — or 112.5%, to be precise — as holding them.

How do I get my Bitcoins back from scams?

The first thing to do is contact the local authorities for your Bitcoin recovery process to be authorized. If this happens on CNC Intelligence, ensure you inform our support team to immediately start the Bitcoin trace process. In addition, you can initiate a dispute and further the Bitcoin scam recovery investigation.

What to do if you were crypto scammed?

If you think you’ve been the victim of a virtual currency scam, contact the CFTC at 866-366-2382 or submit a complaint online. You can also report cryptocurrency fraud to the FTC, the IC3 and the U.S. Securities and Exchange Commission.

Can crypto transactions be traced?

Bitcoin transactions can be traced, as demonstrated by the recent bust in Manhattan as well as last year’s Colonial Pipeline hack, in which authorities were able to recoup some of the ransom payment from the attackers.

Can scammed money be recovered?

You may be able to recover some of your money from an FTC lawsuit or settlement. The FTC has a complaint tool on its website that you can use to submit a complaint. US state attorneys general have anti-fraud departments that also investigate and prosecute scammers.

Will my bank refund me if I get scammed?

If you paid by bank transfer or Direct Debit

Contact your bank immediately to let them know what’s happened and ask if you can get a refund. Most banks should reimburse you if you’ve transferred money to someone because of a scam.

Can I report a scammer to the police?

Report the incident to the classified site immediately, sending them as much information as possible about the ad in question as possible. They can retrieve and store information to pass on to the police. Report the incident to your local police station so that they can open a case.

Can you go to jail for scamming online?

The maximum fine required may range from $1,000 to $10,000. Most online fraud or cyber crimes are known as “wobblers;” they may be punished as either misdemeanors or felonies. The term of imprisonment may be served in county jail for up to three years.

How do you trick a scammer?

How do you expose a scammer?

If you believe you’re a victim of an internet-related crime, report it to these government authorities:
  1. The Internet Crime Complaint Center (IC3) takes internet-related criminal complaints.
  2. The Federal Trade Commission (FTC) shares consumer complaints and online scams with all levels of law enforcement.

What can a scammer do with my phone number?

Scammers can use your phone number to impersonate, steal from, and harass you and others.

What can a scammer do with my picture?

Information fraudsters could get from your photos

A photo posted on your birthday, for example, would provide them with your date of birth, whereas a photo of a new house could potentially give them details of where you live.

Is scamming a federal crime?

Wire fraud is a federal crime that involves any scheme to defraud another person or party by means of electronic communication. It can take many forms including telemarketing fraud, internet scams, phishing, or fraudulent schemes that use television or radio.