Scams increase in number as the industry grows.

Market movements are correlated with cryptocurrency scams. In bull markets, inexperienced traders flood the market, and in down markets, scams make less money. Since 2021, the overall revenue from cryptocurrency scams and hacks has been progressively falling, but scammers are becoming more creative.

Pump-and-dump will always be used.

Pump and dump scams are motivated by market sentiment. Through hype, scammers increase the price of a new cryptocurrency, luring investors to sell and profit later. Pump-and-dump strategies were the source of 24% of new tokens in 2022, demonstrating their pervasiveness.

Scams using AI are becoming more prevalent.

AI developments provide con artists new sly instruments, including chatbots that are driven by AI. The Federal Trade Commission (CFTC) recently issued a warning about frauds that take advantage of artificial intelligence (AI) and make fraudulent claims by making promises. Numerous fraudulent schemes were discovered, one of which resulted in the loss of 30,000 Bitcoins, or $1.7 billion.

spreading deepfake videos

Deepfake video commercials became more prevalent last year, and this trend is expected to continue until 2024. Fraudsters frequently use deepfake technology to promote phoney cryptocurrency projects by using the images and videos of well-known people and artificial intelligence.

X is open to assaults.

The notorious SEC official account is just one noteworthy incident in a string of recent X breaches. The crypto community appears to need to exercise caution over social networks' susceptibility to hacking and manipulation of markets.

The biggest fraud of 2024 might be pig slaughtering.

Romance scams, or pig butchering, are becoming more widely recognised as a major menace. Emotional manipulation on dating apps or social media is the method used in this kind of scam. Before talking about investments, con artists pose as victims and establish a false identity. Underreporting occurs because victims frequently are reluctant to report.

Frauds involving investments

Scams involving cryptocurrency investments continue, with a reported 23% rise in 2023. High returns and rapid gains are promised by con artists, but the fund usage and underlying workings of investment frauds are opaque. Valid projects provide comprehensive details about the team, technology, and goals.

Reports of phishing are increasing

Phishing attacks, which aim to steal $300 million from cryptocurrency users in 2023, use false emails and URLs as their objective. There have been numerous reports of these attacks: Recent phishing attempts targeting Trezor, Blockstream, and MetaMask wallets were risky and innovative.

Scams that double-cross recent victims

As more investment scams result in court convictions, other con artists take advantage of the victims' need for healing. The increase in "double scams" makes cryptocurrency fraud more intricate. A second wave of scams targets victims: companies posing as recovery agents would pay fees to restore lost assets.

Easy ways to prevent cryptocurrency fraud

Be wary of offers that include large returns, double your investment, or free money. Look for mistakes in communication. Steer clear of transactions with ambiguous details. Watch out for shady deals and deceptive practices. Ask questions about influencers' strange endorsements. Be cautious and do your homework before making any investments.