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How to identify scheming and avoid being scammed in crypto

Just like in any industry, crypto has its risks. Unlike credit and debit cards, crypto is not protected by any legal system should something go wrong. Within the world of crypto disputing a purchase or reversing payments is not possible. This is why it is important to do your research and know how to identify scams in order to avoid dangerous schemes. In this article, we discuss what you should look out for in order to stay safe in the world of crypto. 


Tell tale signs of scams and scheming

  1. Legitimate businesses will never ask you for a crypto payment in advance. People often receive messages through social media or emails from “companies” demanding that you send crypto in advance. Don’t fall for it. This is a huge red flag and a common technique used by scammers that you should look out for. 
  2. Don’t fall for easy money or quick return deals. People who understand the market are aware of its volatility and they cannot guarantee you profits. This is usually a hook that is used to catfish people into investing in fraudulent deals. 
  3. Do not trust investment deals that claim to have “zero-risk”. This is simply not possible given that there will always be risks. No company or person can guarantee large payouts or big returns. 


How scammers use impersonation to draw you in to their scheme


Most of these scams usually begin with a SMS or social media message sent by people impersonating either investment managers, celebrities or companies. Let’s have a closer look at how scammers might try and impersonate legitimate businesses or people from the industry.

  1. One of the most common techniques is to impersonate investment managers who promise to double or triple your money. Never pay them the so-called “upfront fee”. What usually happens is that once you've paid them, your funds will be lost and you will not be able to recover them. 
  2. Another tactic is fake celebrity profiles that will ask you to scan a QR code under the promise that they will multiply your crypto. The truth is, no celebrity would take the time to do this and these QR codes are just a way for you to transfer your crypto to the scammers' account. 
  3. Online dating apps are also a hotbed for scheming. If your “love interest” asks you for money or payments in crypto when you have just started messaging, beware that this is probably a scam. Don’t be fooled. If you end up sending them crypto, it is likely that you will never see it again. 
  4. Additionally, people receive messages saying that their account has been frozen due to unusual activity on their account, and that to unfreeze your account, you need to pay in crypto. These are scammers impersonating government officials or institutions. These scammers will even walk you through the process, but don’t waste your time. A government official would never ask you to complete this type of transaction. 


Tips to avoid being scammed


With this in mind, here are a few tips that might help you determine if you are being targeted by a scammer.

  1. Search the person or company name along with the word “scam” and see what comes up. If it is a scam, you will probably find stories and complaints from other people who have been tricked into investing in these fake companies. 
  2. If a company reaches out to you about how they are now embracing crypto and launching their own token, find and check their official channels. Scammers will often impersonate large companies, but if you cannot confirm what they are telling you through their official website or their official social media, it’s a scam. 
  3. Never click on a link or scan a QR code from an unknown number or social media message from a contact you don’t recognize. 

By following these tips and being cautious about who you give your money to, you will be able to avoid scams and keep your crypto safe. 

For more tips, visit: https://limitlex.com/ 


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