Crypto scam

LATOKEN Review About Crypto Scams: How to Protect Your Money in 2021?

LATOKEN Review about crypto scams: who are crypto scammers and how to protect your money? What should you do to avoid becoming a victim of a crypto scam? Here are some tips from LATOKEN that might help you out!

Possible reasons of crypto scams:

  • The unclear legal status of digital assets.
  • The anonymity of counterparties.
  • Difficulties in tracking.
  • The impossibility of classifying cryptocurrency as objects of civil rights.

LATOKEN Review several of the most common schemes used by crypto scammers:

  1. Scam pyramid with MLM elements. For example, the One Coin project is a cryptocurrency that did not have its own blockchain but attracted €4 billion in investments over the three years of its existence;
  1. Scam giveaways. As part of this fraud scheme, users are offered to send cryptocurrency to a specific wallet and get twice as much back. This is usually done on behalf of famous crypto people, for example, Tesla and SpaceX CEO Elon Musk or Ethereum creator Vitalik Buterin. For this, fake accounts are created on social networks, such as Twitter, Telegram, and Facebook;
  1. The promise of quick earnings. Crypto scammers rope their victims in with easy money, quick and/or large income without labor effort. At the same time, to make a profit, it is often necessary to first send money to crypto scammers;
  1. A romance scam. It is about making personal connections with the victim, followed by an offer to invest in some crypto project.

LATOKEN reviews such cryptocurrency scams. You can read about that in the following articles:

Dating App User Lost £20,000 because of Cryptocurrency Scam. How Can You Avoid Being the Next?

LATOKEN: Crypto Scams On Tinder? Swipe Left!

A combination of schemes for crypto scams is often used. For example, the scammer met the Parisian Nabil Aluani on Linkedin, gained his trust, and then Aluani earned “the fastest $50 in his life,” supposed to be on crypto trading. Then Aluani gave up all his savings and ended up losing $78,000. 

Channels of engagement of crypto scams

Users regularly lose money on phishing sites. Fake web resources look almost exactly like a real website or a real project, but they have almost subtle differences. For example, the difference can be in one letter or punctuation mark. Therefore, it is essential to use only real crypto exchanges or deal with a real crypto project. For example, LATOKEN is an international crypto-exchange and IEO platform with over 1.3 million users worldwide. That’s why you can forget about the LATOKEN scam!

Another type of crypto scam is fake mobile crypto exchange apps. They are available on Google Play and the App Store. They look almost like the real thing but may differ slightly in the logo.

This year, crypto scammers often impersonate Elon Musk. For example, a German citizen lost ₤400 thousand (about $560 thousand) on the giveaways on behalf of Elon Musk. On Twitter, on behalf of the Tesla CEO, the scammers promised to double the bitcoins if the person managed to transfer them to the specified account before a particular time.

Elon Musk’s imitators have stolen at least $2 million over the past six months, according to the US Federal Trade Commission (FTC).

According to data published by the FTC, the number of crypto scammers has risen since October, reaching a record level in the first quarter of 2021: 7 thousand people became victims of cryptocurrency scams, the total amount of losses exceeded $80 million, the average was $3,25 thousand.

According to FTC statistics, people between the ages of 20 and 49 most often fall victim to crypto investment scams. Their appeals to law enforcement agencies have increased fivefold over the past four years. People over 50 lose money less often, but the amounts they lose are more significant.

LATOKEN Review: How government agencies are trying to protect citizens?

First of all, the regulator is fighting against crypto scams. They alert people to potential dangers. For example, in January of this year, the British regulator FCA warned that users should be prepared to lose everything when investing in cryptocurrencies.

In July, a spokesman for the DFSA, the UAE’s regulator, urged foreigners and citizens to be more careful when investing in cryptocurrencies. In Russia, most of these warnings are issued by the Central Bank.

Analytics companies such as Whale Alert also seek to track crypto scammers. According to the service, in January-March 2021, fraudsters earned more than $18 million on the “giveaways” scheme, which is $2 million more than in 2020.

How to protect yourself from crypto scams. LATOKEN review:

  • Any offer to send crypto to an unknown or suspicious organization or an individual is most likely fraudulent. It is also worth treating with distrust messages with various “generous offers” received by email, in messengers, and on social networks.
  • In order not to become a victim of a crypto scam on phishing sites, you need to use only verified links. It is worth remembering that any promise of a fixed and guaranteed return is a characteristic feature of a suspicious financial institution.
  • Crypto scammers take advantage of people’s ignorance since many newcomers are always interested in the crypto sphere. Therefore, to protect yourself from a crypto scam, you need to improve your financial literacy and understand how the blockchain industry works.

To find out more, read the following LATOKEN articles. There you will find even more information and LATOKEN tips on how to avoid becoming a victim of cryptocurrency scams:

If you want to read more articles and find relevant information about crypto, follow us on LATOKEN on Medium, on LATOKEN Blog or LATOKEN VCTV channels. 


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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.