Popular fraud schemes in the cryptocurrency market.


MiniBTC Team
Staff member
Hello to everyone!
Today I will tell you about popular fraud schemes in the cryptocurrency market. Because the cryptocurrency market is developing, fraudsters of all stripes have rushed into the crypt with the sole goal of making money at any cost. Even by deception.

If you’re watching crypto news or Telegram news, you’ve probably seen a different scam every day. But what are the most popular schemes of cryptocurrency fraudsters you should know about?

There are several of the most common schemes and techniques used by fraudsters:

1.Ponzi schemes or financial pyramids are common types of fraud that affect people’s emotions.
These schemes work because they promise returns that are higher than the market average, and also promise to make investors rich quickly.
They use tricky tactics to give investors the illusion that they actually profit from the «super-secret trading algorithms» in which they invest your money.
In fact, Ponzi schemes pay old investors (people who invested their money in the scheme at an early stage) money from new investors, not the «magic» algorithm they advertise.
Old investors are under the illusion that they have made the right decision, and for that reason the fraud is not identified as such until it is too late.
Soon, word of mouth spread quickly that this project is a really good way to make money quickly. And more and more people are investing in this scheme.
Then, as the circuit grows to a fairly large size, the owners of the circuit will disable the payments and wave the pen. This is how most Ponzi circuits work in the cryptocurrency market.

2.Gift distribution (from. «giveaway»). As part of this fraud scheme, users are asked to send a cryptocurrency to a particular purse and get back twice as much. This is usually done on behalf of famous people such as Tesla and SpaceX head Elon Mask or Ethereum creator Vitalik Buterin. For this purpose, fake accounts are created in social networks such as Twitter, Telegram, Facebook.

3.Exchange and Exchange Fraud. It is obvious that from time to time people are required to buy or sell cryptocurrencies. Although there are many popular exchanges such as Binance. But there are also shadow exchanges that would rather embezzle your money than provide a good service.
Even if you’ve had a positive experience in the past, it can always happen that a trustworthy exchanger or exchange decides to go to the dark side)
In addition, whether you buy cryptocurrency on the Shadow Exchange or on a reliable exchange, I do not recommend you to keep any meaningful amounts there. Because every once in a while, you and I read in the news about stock market hacking.
I advise you to store cryptocurrencies that you do not plan to trade on the stock exchange, in your hardware purse or in your software purse.

4.Wallet Fraud. As with exchanges, anyone who wants to invest in and own cryptocurrencies needs a cryptocurrency purse to store their cryptocurrencies.
Many well-known wallets, such as Exodus, Ledger are legal. But there are purses that can rob you afterwards.
The cryptocurrency purse fraud method most often works in such a way that at first it functions like a normal wallet.
The only difference is that most private keys of your purse are sent to the purse owners. And then your account can be cleared at any time. Because anyone with a private key in your purse can handle your money.

What to do:

1) Use only community-tested purses;

2) You must have a private wallet;

3) Double-check the link you get to your wallet to avoid a phishing site.

5.Phishing sites. Fraud with fake sites is not exclusive to cryptocurrencies. Because the scheme is used by fraudsters in all directions to access people’s Internet accounts.
In fact, phishing is a form of fraud in which you will most often receive an e-mail in which you will be persuaded that it actually belongs to a trusted company.
Most frequently included in an e-mail is a message calling you to log into your account on the service. Like your wallet or your stock account.
You will most likely have to click a link in your e-mail where you will be redirected to a page to log into your account.
This page will look the same as a normal login. Be careful as fraudsters become more sophisticated and use such things as fake Airdrops (airdrops are free cryptocurrency distributions that are used to encourage the use of a new cryptocurrency).
These fraudsters also try to reproduce the company’s e-mail and domain as accurately as possible so that you may not notice the added point or additional letter or sign.
To avoid such fraud, I strongly recommend that you never click the link in an e-mail to log on to your account. Better find the company in and log into your account in a way that avoids the risk of accessing a fake site. Google

6.Fraud with ICO. ICO allows development teams to receive funding to fully develop their cryptocurrency or token-related product.
If you don’t know, ICO means the «Initial Offer of Coins» and is basically the equivalent of IPO, only in the world of cryptocurrency.
Although there are many ICO that are legal. Many of them make a lot of money. You help them with your money to build your project, and after a while you sell tokens on the stock exchange several times more expensive. There are ways to get dividends from a project. But there are also people who take advantage of the ICO market. They’re blowing dust into your eyes, setting up a collection for the sole purpose of getting your money.
The reason these ICO are working, although they are fraud, is because their marketing messages are designed to play on people’s emotions.
Besides, there are a lot of people who don’t understand much in the world of cryptography and know nothing but first-hand.
The ICO scams are mostly for these people. Because they know little about cryptocurrencies and are willing to give money to anyone who promises to make them rich in a short time.
So, what is it worth to look at when investing in ICO, so that you don’t make the mistake of giving money to frauds?
There are certain things you have to do before you invest.
Before investing in any ICO, one should consider whether WhitePaper (the document describing the project itself) is innovative and solves real problems or whether it is simply copied from another cryptocurrency for the sole purpose of "looking good».
Another point that is typical of such ICO is that the ICO team and developers are actually anonymous and do not represent themselves openly and transparently.
In addition, owners of fraudulent ICO often ignore critical questions from their investors. It is also a sign that they may be hiding something.
If the team behind ICO always rushes to collect money, it also leaves a negative impression. Because it says they’re not really trying to make their product perfect.

And finally. If ICO, where you want to invest, does not solve a real problem and does not have a clear idea of how they plan to introduce their product and develop further, it is best not to take risks. Decline this offer, please.
Better not to earn than to lose.

The SEC (American Securities and Exchange Commission) also criticized ICO because it became clear that many people were actually cheating with this cryptocurrency. It’s worth exploring that moment. Perhaps your project has also been written somewhere before about a relatively new technology to fund development groups.
I want to warn you. Lack of qualitative and reliable information about the project in independent sources should alert you.
It is a problem if you know the information about the project only from the team and from a few resources on which you can buy reviews.


Anyway, I’d like to say that these are the most popular schemes of cryptocurrency fraud and they’re not the only ones. For your cryptocurrencies to be fully protected, make sure you remember these types of fraud and follow the advice I gave you to identify such schemes.
Also, I advise you to use your common sense, because most fraudsters are quite easy to detect if you turn your brain on and think critically.

Thank you for reading it to the end and I hope that you have taken something useful for yourself from this article :)!

Invest wisely and be careful! All BENEFIT!

The author of this article @thrvz
Last edited by a moderator:


Большое спасибо! Очень полезная информация. Кратко и ясно и ничего лишнего.


But still despite all the dangers in today's realities, the ability to pay for services or goods with cryptocurrency is a rarity. Developing your own payment solutions requires financial costs and does not guarantee the desired result. Now this problem has been solved because a payment gateway has been developed that allows users to pay for goods and services with crypto payments in the same simple way as a traditional payment method. It is risk-free, secure and can be easily integrated into any website or mobile app. Web development, mobile application development, startup launch or improvement of an existing product using blockchain technology.
Private conversations
Help Users
    You haven't joined any rooms.