What Are The Common Crypto Scams? | by Tanzila Shabir | Coinmonks | Sep, 2023

Tanzila Shabir
What Are The Common Crypto Scams?
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Scammers love to target cryptocurrency users because the decentralized nature of crypto makes it vulnerable. With no central authority oversight, suspicious transactions can’t be flagged or reversed like they could be by a bank.

Between January 2021 and June 2022 alone, over 46,000 people reported losing $1 billion in crypto to scams, per the Federal Trade Commission.The actual number is probably even greater.

To keep their assets safe, crypto investors need to know the top scams to watch out for. The lack of regulation in crypto opens the door for fraudsters to constantly invent new ways to steal funds. Staying informed on the latest schemes is key to protecting your cryptocurrency investments in 2023 and beyond.

Scammers frequently use social media sites such as Twitter, Instagram, and TikTok to promote fraudulent schemes by faking celebrities or well-known brands. Even though these platforms have taken steps to stop fraud, bot scams are still prevalent.

The European Consumer Organization (BEUC) accused social media platforms of facilitating digital asset scams, pointing to lax regulations that allow con artists to prey on impressionable teenagers. To avoid crypto fraud, users should exercise extreme caution while connecting with popular cryptocurrency projects.

Scammers will either close down the website or sell counterfeit products.

The growth of artificial intelligence (AI) has enabled scammers to develop new ways of fraud and deception, such as interacting with individuals via chatbots or virtual assistants, providing investment advice, and promoting bogus tokens and ICOs. This puts social proof-of-work to the test, making it easier for scammers to deceive people.

Furthermore, AI can be used to organize intricate pump-and-dump strategies, boosting token value and profitably selling off holdings. It is important to remember that AI can also be utilized to prevent online fraud. San Diego State University, for example, has built an AI system to detect and reveal cryptocurrency giveaway scams on Twitter.

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