Crypto criminals are always looking for new ways to steal your hard-earned money, and the massive growth of cryptocurrency over the past few years has opened a door of opportunity for them to do just that. According to a report by Chainalysis, in 2021, crypto criminals stole $14 billion in digital currencies, up from $7.8 billion in 2020.
If you are interested in cryptocurrency, it is important to be aware of the risks. Below, we have compiled a list of six common cryptocurrency scams you should be aware of as you navigate the cryptocurrency world.
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Fake Phone Apps
Another common way crypto criminals trick unsuspecting victims is through fake apps available for download through the Apple Store or Google Play. Even though these apps can be quickly found and removed, they can still impact many bottom lines.
If you have lost money by downloading a fake cryptocurrency app, a lawyer who handles investment fraud cases can work with you to recover your lost funds.
Blackmail and Extortion Scams
Crypto criminals use blackmail to extort money from victims. They send emails claiming that they have a record of all the adult websites visited by the victim and threaten to expose the victim unless they send cryptocurrency.
If a crypto criminal is blackmailing you, a lawyer who handles investment fraud cases can help you press charges against the criminal and recover any money that you may have lost.
Fake Celebrity Endorsements
Sometimes, crypto criminals pose as business people, influencers, or celebrities to capture the attention of cryptocurrency investors. They then sell phantom cryptocurrencies that do not exist to the unsuspecting victims.
If you are a victim of a fake celebrity endorsement, a lawyer who handles investment fraud cases can help you pursue a claim for financial recovery.
Pump and Dump Schemes
Pump and dump schemes involve a particular token or coin being hyped by crypto criminals through social media platforms such as Facebook, Twitter, Instagram, or mass emails. Not wanting to miss out on the opportunity, cryptocurrency investors rush to buy the tokens or coins, increasing the price. Having inflated the price, the crypto criminals sell their holdings, causing the asset’s value to decline.
If you have lost money in a pump and dump scheme, a lawyer who handles investment fraud cases can help you recover your fraudulent losses.
Crypto Phishing Scams
With phishing scams, crypto criminals target crypto wallet private keys, which are needed to access funds in the wallet. They send mass emails to lure unsuspecting victims to a fake website asking them to provide private information. Once the criminals have this information, they steal the funds within the wallet.
Sometimes, crypto criminals create fake websites that have similar domain names as the sites they are trying to mimic. All the details you enter end up in the criminals’ hands, and they can use these details to steal the cryptocurrency in your wallet.
If a crypto criminal has stolen all the money in your crypto wallet, an investment fraud lawyer can help you recover your losses.
Contact a Lawyer Who Handles Investment Fraud Cases for all Your Cryptocurrency Cases
The cryptocurrency market is filled with exciting opportunities, and it is easy for you to be enticed by the endless possibilities. Now that you know six of the most common cryptocurrency scams, you can stay vigilant while buying or trading cryptocurrency. In case you suspect any cases of fraud, always contact an investment fraud lawyer to handle your case.