Part 2 How to Identify and Prevent Crypto Scams: A Complete Guide for 2024 + What to Do If You’ve Been Scammed and How to Reclaim Crypto
What is a Dirty Money Scam?
A Dirty Money Scam is a fraud where the scammer sends you money obtained through illegal activities, such as theft or fraud, or using a stolen credit card. By accepting these funds, you may unknowingly become involved in money laundering, which can lead to serious legal consequences, including imprisonment. This type of scam frequently occurs on P2P exchanges where people trade cryptocurrencies, as well as on websites and social media where individuals sell their products. The scammer misleads the sender into thinking they are paying for a different product or service. When you receive the money and send the goods to the scammer, the funds are likely to be reclaimed by the original sender, leaving you without your goods or cryptocurrencies.
How to Identify a Scammer:
1. Unsolicited Advantageous Offers: Be suspicious if someone offers you a higher price than usual. Why would someone pay more when they can get a better deal elsewhere?
2. Profile Check: Examine the buyer's profile. If it's new, locked, or lacks sufficient history, proceed with caution.
3. Multiple Credit Cards: Scammers often use several credit cards and alter transaction amounts because they are unsure of each card's balance.
How to Protect Yourself:
1. Trade Only with Verified Sellers: Use only verified P2P exchanges and marketplaces.
2. Be Skeptical: If someone offers you suspiciously favorable terms, decline. Scammers can be very persuasive and charming, but they do not care about your well-being.
What to Do if You Have Been Scammed:
1. Contact Payment Method Support: If you used an online payment method, immediately contact their support and explain the situation in detail.
2. Gather Evidence: Take screenshots of all communications, record all details such as phone numbers, email addresses, the scammer's profile, and any other relevant evidence.
3. Report to the Police: Although the success rate may be low, report the case to the police. A police report can be helpful when filing claims.
What is a Refund Scam?
A Refund Scam is a fraudulent scheme where scammers use various payment methods like PayPal, Alipay, or credit cards to deceive you. The scammer will offer to buy cryptocurrencies or goods from you (often responding to your ad, for example, on Facebook Marketplace). They send you money but then request a refund from the payment service, claiming they never received the agreed goods or cryptocurrencies. They often have fake evidence ready, such as fabricated chat screenshots. This type of scam is particularly common on P2P cryptocurrency exchanges and dubious sites offering services like "How to make money on crypto" or "earn crypto." Be extra cautious if you come across such services.
How to Identify a Scammer:
1. Unsolicited Advantageous Offers: Scammers often offer above-average fees for purchasing cryptocurrency or large sums for goods but insist on using a specific payment method.
2. New or Inactive Profile: The scammer's profile is often new or has very little history.
3. Multiple Credit Cards: Scammers frequently use multiple credit cards and vary transaction amounts because they are unsure of the balance on each card.
How to Protect Yourself:
1. Use Common Sense: If an offer sounds too good to be true, it probably is a scam.
2. Official Exchanges: Only buy cryptocurrencies on official exchanges.
3. Profile Check: When selling goods, thoroughly check the buyer’s profile. Insist on using a safer payment method, such as SEPA transfer.
What to Do if You Have Been Scammed:
1. Contact Support: Immediately contact the support team of the payment method you used (e.g., PayPal, VISA, MasterCard).
2. Gather Evidence: Collect all communication with the scammer and all relevant data (e.g., TXID, the address where the goods were supposed to be sent).
NOTE: If you know these scammers, contact our exchange. They have cheated many people, and we will give you a high reward for any information leading to their exposure.
What is a Money Change Scam?
A Money Change Scam is a fraud often involving people trading money, cryptocurrencies, or precious metals. The scammer pretends to be interested in your valuables and offers you an exceptionally high price. They exert pressure over a long period, pretending to be your best friend to get you to sell. If you agree, the scammer cleverly swaps real money for counterfeit cash. They are very cunning and often work in groups, making them hard to detect. They pretend to be affluent entrepreneurs, often renting expensive cars and creating elaborate stories about their businesses.
How to Identify a Scammer:
1. High Offer: They offer you an unusually high amount for your valuables.
2. Unusual Story: They have a strange story about why they want to buy from you specifically.
3. Persistent Pressure: They keep persuading you even after you’ve declined.
4. Foreign Nationals: This type of scam is often committed by foreigners.
How to Protect Yourself:
1. Verify the Buyer: Try to find them on social media and ask about them on various forums.
2. Be Suspicious: If someone offers you an exceptionally high amount and is insistent, it’s likely a scam.
3. Use Common Sense: Why would someone offer you so much money for something they can get cheaper elsewhere?
What to Do if You Have Been Scammed:
1. Play Unaware: Pretend you haven’t noticed the money is counterfeit, for example, by saying you’ve put the cash in a safe and want to close another deal.
2. Contact the Police: Go to the police before your next meeting and explain the entire situation.
3. Gather Evidence: Collect all evidence such as chat screenshots, phone numbers, and try to obtain video footage from the location where the exchange took place.
What is a Foreign Currency Scam?
A Foreign Currency Scam occurs when someone offers you money in a currency not commonly used in your area, such as Swedish kronor. They promise an attractive exchange rate, but the money is actually counterfeit. The scammer relies on your inability to verify the authenticity of the foreign currency. If someone proposes this kind of deal, contact the police immediately. It is a serious crime, and by reporting it, you can help prevent further scams and protect others' savings.
How to Identify a Scammer:
1. Unsolicited Advantageous Offers: They offer a higher reward than usual and have non-traditional currencies available.
2. Convincing Excuses: They claim to have worked in a particular country and cannot exchange the money through standard channels due to tax issues. It sounds believable, but it’s a scam.
How to Protect Yourself:
1. Decline Immediately: If someone offers you such a deal, refuse it.
2. Contact the Police: If the situation allows, call the police right away. This can help prevent further scams.
What to Do if You Have Been Scammed:
1. Contact the Police: As soon as you realize you have counterfeit money, notify the police.
2. Maintain Contact: Try to keep in touch with the scammers.
3. Gather Evidence: Obtain video recordings from places where you met the scammers, and keep all evidence such as phone numbers and communication records.
What is an Investment Scam?
An investment scam is a scheme where someone calls or writes to you offering an "amazing" investment opportunity, promising high returns, often between 20% and 40%. The scammer may contact you in various ways - by phone, email, social media, or through acquaintances who may also unknowingly fall victim to the scam. No reputable investment company will contact you in this manner or promise high returns. Do not invest, even if it seems trustworthy! Scammers also like to use enticing phrases such as "earn crypto free" or "make money on crypto" and for a small fee, you can participate in their great project.
How to Identify a Scammer:
1. High and Guaranteed Returns: They offer unrealistically high profits.
2. Vague Projects: They lack specific, verifiable projects.
3. Suspicious Contact: They contact you directly, often via social media, and showcase a luxurious lifestyle with expensive cars.
4. Missing License: They do not have a license, or the license is unverifiable.
5. No Analysis: They do not care about your income and expenses, which goes against responsible investing rules.
How to Protect Yourself:
1. Decline Immediately: If someone offers you an investment opportunity, refuse it.
2. Do Your Own Research: Look for investment opportunities on your own and always verify the information.
3. Consult a Professional: Before making large investments, consult with a lawyer or financial advisor.
What to Do if You Have Been Scammed:
1. Play Unaware: If you realize you’ve been scammed, do not reveal it to the scammers.
2. Request Your Money Back: Gradually ask for your money back in small amounts. By promising that you are waiting for a large sum to reinvest, the scammer might slowly return your money, hoping you will invest a larger amount.
3. Gather Evidence: Collect all possible evidence - communications, contracts, phone numbers.
4. Contact the Police: If you cannot recover your money, go to the police immediately.
Conclusion
After reading this article, you now have a much better chance of protecting yourself from scammers. However, remain vigilant and remember that when it comes to money, human greed knows no bounds. Your caution and awareness are your best defenses.
Written by: Vladimir Galba, CEO: https://www.acechange.io/
If you started reading this article here, you probably haven't read the first part. It is very important,
and in it, we teach you what to do if you have already been deceived and much more. Click here:
