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Author: Admin | 2025-04-28
Were later revealed to be fake.2. Fake walletsA fake wallet scam tricks users into believing they’re using a legitimate digital wallet to store their assets. The fake wallet asks users to enter their private keys—information that should never be shared, by the way—and then scammers use those private keys to steal users’ crypto holdings. Fake wallet apps may live in app stores or be promoted through phishing emails.A fake version of the Trezor digital wallet in the Google Play store impacted many users. Trezor is a well-known producer of hardware wallets, and the fake wallet was convincingly designed to seem like Trezor’s mobile app.3. Crypto Ponzi schemesA crypto Ponzi scheme is one that offers high returns by using capital infusions from new investors to pay the promised gains. Just like traditional Ponzi schemes, crypto Ponzi schemes deceive investors into believing that legitimate activities are fueling investment returns.Bitconnect is an example of a crypto Ponzi scheme. The fraudulent platform promised returns on Bitcoin of up to 40% per month, requiring investors to exchange their Bitcoin for the platform’s own coins. The platform was revealed as a Ponzi scheme when it failed to continue operating.4. Phishing and social engineering attacksA social engineering attack manipulates people into divulging confidential information or performing actions that can give a scammer access to your crypto. Phishing for sensitive information—such as usernames, passwords, or your private keys—by pretending to be trustworthy is a type of social engineering attack.Phishing attacks that target crypto holders may take the form of fake emails, messages, or websites. Misspelled URLs are another entry point for scammers. For example, the crypto exchange platform Bittrex.com was maliciously cloned by scammers, who simply targeted anyone who visited “Bilttrex.com” by mistake.5. Pump-and-dump schemesA scammer using a pump-and-dump scheme leverages various tactics to artificially inflate (or “pump”)
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