What is a crypto scam?

by | Oct 5, 2022 | Crypto guides | 0 comments

The world of crypto-currency is full of opportunities, but it is also very vulnerable to scams. Crypto-currency related scams are indeed on the rise and can take various forms. This article will help you spot the different types of crypto scams and know what to do if you fall victim to one.

The different types of crypto scams

Crypto-currency is a booming field, as it offers many benefits. However, there are some scams that can make you lose a lot of money if you are not careful. So in this article, we will see what the different types of crypto scams are and how to spot these to avoid falling victim to malicious ones.

How to spot a crypto scam?

There are several types of crypto scams, but they all have a common goal: to steal your funds. The most common scams are Ponzi and pyramid schemes, which promise high returns in exchange for large investments. These schemes often use trading platforms to recruit new investors and collect their money. They may also offer bonuses or incentives to get people to participate. Unfortunately, these programs never deliver on their promises and end up disappearing with the money of everyone who participated.

How to spot a crypto scam?

Crypto-currencies are becoming increasingly popular, but they also attract their share of scams. In this section, we'll show you how to spot a crypto scam and the pitfalls to avoid.

Crypto scams: how to spot them?

A crypto scam is generally defined as a form of fraud using cryptographic assets. Scammers can use a variety of tactics to scam their victims, but there are a few common clues you can look out for if you suspect a potential scam:

  • An offer too good to be true: Scammers tend to promise impossible or abnormally high returns. If someone promises you an impossible return on investment, it should raise suspicions.

  • Logical flaws in the offer: take the time to understand how the investment in question works and seek out any additional information before trusting anyone.
  • Pressure to get your money fast: Good opportunities don't disappear overnight, so never invest under duress or pressure.

The pitfalls of crypto scams to avoid

Crypto scams are unfortunately commonplace in the world of cryptocurrencies. They can take many forms, but the principle is always the same: scammers try to scam you by pretending to be someone else, in order to extort money from you. Fortunately, there are a few tricks you can use to spot a crypto scam and avoid the traps set by them.

First of all, be careful if you are offered something that is too good to be true. Indeed, extravagant promises (promised big gains in a very short time etc.) often hide much more complex scams behind them. Similarly, do not respond to urgent or pressing needs that someone - supposedly a credible intermediary - might have expressed, as this would probably be an attempt at a scam!

Also, take the time to learn about the people and/or entities you will potentially be dealing with in the cryptocurrencies.

What to do if you are a victim of a crypto scam?

Scammers are people whose goal is to embezzle other people's money. They exist in all fields, including cryptocurrencies. In this section, you will learn what to do if you are a victim of a crypto scam.

Report the scam to the AMF

It is important to report a crypto scam to the AMF. This will prevent other people from being victims of the same type of fraud. To report a crypto scam, you must:

  • provide the evidence and information necessary for the investigation;

  • send the complete file by mail (or online if possible);

  • clearly indicate which infraction has occurred.

File a complaint with the police or gendarmerie

If you have been a victim of a crypto scam, the first thing to do is to contact the appropriate authorities. You can either contact the police or the police station in your area directly, or you can fill out an online file on the website https://Signalez le.fr/. The French public services platform allows victims to file an online complaint against X for computer fraud if they have provided personal and financial information (bank account numbers, credit card numbers, etc.) via the Internet or any other remote electronic means (SMS/MMS, e-mail).


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