Cryptocurrencies are increasingly being used for cross-border transfers and payments, thanks to exchange companies. The process is much easier and faster. However, with the growing popularity of this method of transfers and exchanges, the number of scammers ready to exploit the inattention of inexperienced crypto enthusiasts is also increasing.
In this article, we will explore the most common scams associated with cryptocurrency exchanges and provide you with tips on how to avoid becoming a victim of scammers.
Triangle
One of the most popular patterns is called the "triangle." A client seeking to buy cryptocurrency for cash discovers an exchange service website pretending to be a legitimate cryptocurrency exchanger. The client visits the office where employees conduct the transaction, requesting the client to provide a wallet address for the cryptocurrency transfer. However, after this action, the funds do not arrive in the client’s wallet.
What went wrong?
The reason is that scammers, posing as genuine representatives of the exchanger, contact the real service and declare their intention to purchase cryptocurrency, mentioning the arrival of the courier. The client, mistaken by the exchange office for a courier, becomes a victim of fraud. While transferring money to an exchange service, the victim client, communicating only with scammers, sends them his wallet details, while the scammers simultaneously provide the exchanger with their wallet details.
The exchanger transfers the money to the scammer’s wallet, and the client, having transferred the money to the exchanger, is ultimately left without funds.
"Money Up Front"
A slightly improved version of the banal deception scheme.
The point is that scammers offer to conduct a test transaction for a small amount. After several transactions, the victim is ready to exchange a large amount, but the scammer "disappears," leaving the victim without money and cryptocurrency.
"Fishing"
Fraudsters advertise a profitable purchase of cryptocurrency but change the price to a less profitable one when the client takes the bait. As a result, while the client completes the transaction, he receives less than initially promised, citing exchange rate volatility.
How to Avoid These Schemes and Not Be Deceived?
‼ To avoid being scammed, clients need to be very careful and check services offering cryptocurrency exchange services. It is best to adhere to a few fundamental safety rules when exchanging cryptocurrencies:
