Watch out for these new Crypto scams

Today I want to take some time to make you aware of some common scams going around involving cryptocurrency – some specifically targeting Australian users.

Scammers have always targeted people in investment-related areas, especially those where people are looking to take risks to make money. Cryptocurrency has presented itself as a scammer’s paradise since newcomers can find it difficult to separate a scam and a real project.

Some of these scams also leverage the irreversible nature of cryptocurrency transactions and their relative anonymity, meaning that once a victim makes the mistake of sending them their crypto, they have no shot at getting it back.

I’m going to go over a few common scams that you’re likely to see around, how they work, and what to look out for in the future.

1. Fake Dick Smith Endorsements

This particular scam has been advertised across all kinds of major online platforms, using fake interviews with Aussie millionaire Dick Smith to trick people into giving their money to a Crypto-related scheme.

Of course, the scheme being advertised has nothing to do with Dick Smith himself at all, only using his name and fake dialogue to trick people into thinking the scam is a legitimate investment.

This type of scam can be tricky for some people.  After all, it’s being published on legitimate news websites (including The Guardian Australia) and appearing to be endorsed by a legitimate name (Dick Smith).

But there is one obvious red flag: The advertisements all link to fake articles telling you how to “get rich in a few days”, which we all know is a type of promise we should always avoid!

The scam has been so prevalent, that Dick Smith himself has threatened legal action to stop his name being ruined by the scam – threatening The Guardian Australia, in particular, with a defamation lawsuit.

2. Russell Crowe’s “Bitcoin Revolution”

This one is another supposedly celebrity-endorsed scheme, which of course, isn’t actually endorsed by the celebrity at all.

This scam advertises a Bitcoin “trading system” which promises users daily returns on their investment, saying that famous actor Russell Crowe himself has made billions of dollars from a “wealth loophole” which “can transform anyone into a millionaire within months”.

The scheme even has a second website floating around with a lengthy fake review which claims that the website is legitimate, but only churns out hundreds of free dollars a day rather than thousands – still much too good to be true!

As you have probably picked up, the red flags are plentiful on this one:

• Promises to “get rich quick”
• Advertising a “trading system” which asks for your money – these are almost always scams, and you should steer clear from any trading system, “automated” or otherwise, that asks for your money
• It calls Russell Crowe a “chef” multiple times, which is well…. Inaccurate to say the least.

Stay well away from this one!

3. Twitter “Giveaway” Scams

If you’re active on Twitter, it’s very likely that you’ve seen these giveaway scams floating around.

These involve prominent Twitter accounts advertising cryptocurrency “giveaways” which ask you to send crypto to an address, promising to send you back your money and more in return.

This one is quite obviously a scam since no real giveaway would ask you to send them money.

The reason this has worked so far, however, is mostly because people put their trust in the name that appears to be advertising the scam – the accounts are always imitating well-known, well-respected figures in the public eye.

The accounts used, however, are usually only fake versions of the people they appear to be, and often make this harder to realize by spamming the scam on a Tweet which was made by the actual person’s account.

This scam has been taken one step further in the past when a hacker managed to gain access to ACTUAL verified accounts. This time, the scam was performed once again in the same format but tweeted from the authentic accounts.

The red flags, however, still remained:

• Promises of free money
• Asking users to send their money to an address out of the users’ control.

Tips to avoid scams:

Of course, these aren’t the only scams that you’ll encounter in the Cryptocurrency world. There are, however, some common red flags to look out for going forward:

• If something seems too good to be true, it most likely is
• Avoid all crypto giveaways which ask you for anything more than a public key (and if you’re going to provide a public key, make it a new one!)
• If you’re skeptical about an opportunity, never send large amounts of money. You can always test first, using a smaller amount
• Be aware that fake impersonation accounts exist, and sometimes even real accounts can post scams if they’re hacked
• Read the comments, check other websites. Does anything look suspicious?
• Never trust anything in Crypto without doing your research. Always do your due diligence!

Conclusion

In short, cryptocurrency is targeted by scammers because people in the niche are often looking for quick ways to make money. Newcomers to crypto also generally don’t understand the area well enough to be able to differentiate between scams and legitimate projects.

Returns are never promised, so if you see anything suspicious about “guaranteed” returns, it’s pretty safe to say you should run the other way!

If you’re ever in doubt about a crypto opportunity that sounds dodgy – refer to the above list, and see if it ticks any of the boxes. If any of the points on the list seem like they’re satisfied, it’s better to hold on to your money.

Crypto isn’t just about making money quickly, it’s also about survival. Play smart, be cautious, and stay safe – if you miss out there’s always another opportunity around the corner.