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How do cryptocurrency scams work?

In the cryptocurrency world, unfortunately, it is becoming increasingly easy to come across scams, and for those who have just entered this space, it can be difficult to navigate without the necessary tools and information to understand whether a project is a scam or not.

Sadly, this lack of digital knowledge is often exploited by criminals who want to steal cryptocurrencies from victims.

We will now see how and with what strategies criminals and hackers attract their victims. To do so, I will share a personal experience.

One of the ways in which criminals contact their victims is through social media, especially Telegram.

Usually, the criminal uses the name of a known person, an admin of the chat rooms to which the user is subscribed or a real profile of someone they know.

Once the user is contacted, the scammer will usually ask whether they own a cryptocurrency and whether they are interested in an investment proposal.

Obviously, the perpetrator promises substantial earnings through the transfer of the seed, a crypto deposit to the address of the scammer or registration to a platform where, usually, the personal information of the user is requested, often including the seed of their wallet or password.

At this stage, it is advisable to pause and remember the saying “Don’t Trust, Verify!”, which is very common to hear in the crypto sector.

First, it’s best to check the website address and see how long it’s been online. The first warning bell, in fact, is if the website has just been opened. 

These websites often promise earnings after depositing an initial amount.

Another useful information to understand if the platform is reliable is the verification that the contact data, such as phone number, social contacts or an email, is there.

Crypto scams via Telegram chat

As previously mentioned, a very common case involves being contacted by accounts that pretend to be the admin of the chats to which the users are subscribed. To avoid these problems, the general rule dictates that administrators should never contact users first

Furthermore, to avoid these scams it is sufficient to check the groups in common with this person or whether the handle is written correctly. Finally, if it is a scam then it is likely that, even in this case, the user will be asked to send their seed. This means that it is 100% a scam, as the seed is the only way to steal funds from the wallet.


Alfredo de Candia
Alfredo de Candia
Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.