Top Crypto Scams in 2024: What are They and How to Avoid Falling into a Trap

Cryptocurrency has captured the attention of investors, offering the promise of financial freedom and innovative opportunities. As this digital frontier expands, so too do the scams that prey on unsuspecting people. In 2024 crypto scams have evolved, as criminals employ increasingly sophisticated tactics to exploit new and seasoned investors. Understanding these scams is important for anyone looking to safely navigate the exciting world of cryptocurrency. This article will explore the most prevalent scams this year and equip you with the knowledge to avoid falling into their traps.

Before You Get Started

Educating our community is key to fighting online scammers and hackers. That's why we offer resources, like this guide, to keep you ahead of malicious actors.

Trust Wallet gives you proactive security alerts, notifying you of risky transactions and malicious dApps.

These alerts are designed to protect your digital assets. Download the latest version of Trust Wallet installed to receive them.

Trust Wallet also lets you manage and interact with 10M+ crypto assets across 100+ blockchains. Download the latest version of Trust Wallet today.

Understanding Crypto Scams

Crypto scams are schemes designed to deceive people into giving up their cryptocurrency or personal information. The decentralized nature of cryptocurrencies, combined with the lack of regulation, makes them an attractive target for criminals. In 2023, it was estimated that around $2 billion was lost to scams, rug pulls, and hacking incidents, highlighting the need for increased awareness and vigilance among users.

Common Types of Crypto Scams in 2024

As we look into 2024, several scams are particularly noteworthy:

• Fraudulent trading platforms: Making up 87% of reported scams, these platforms lure victims by mimicking legitimate trading sites. Fraudulent platforms often promise high returns and create fake market movements to entice users into depositing funds, only to disappear with their money.

• Pig butchering scams: This type of scam involves building a relationship with the victim over time before convincing them to invest in a fake trading scheme. The term "pig butchering" refers to the method of fattening up the victim before taking their money.

• Imposter scams: Scammers impersonate well-known companies or people, often promising investment opportunities or claiming to resolve issues with a victim's account. These scams can be particularly convincing, leveraging the credibility of the impersonated entity to gain trust.

• Romance scams: Exploiting emotional connections, scammers create fake profiles on dating platforms to gain victims' trust and then manipulate them into investing in fraudulent schemes.

• Phishing attacks: Scammers send emails or messages that appear to be from legitimate sources, tricking victims into revealing sensitive information, such as wallet keys or passwords. These attacks are increasingly sophisticated, making it essential to verify the authenticity of any communication before responding.

• Drugs-in-parcel scams: A newer crypto scam that emerged in 2024 involves criminals claiming to send parcels containing illegal substances to victims. The scammer then demands payment in cryptocurrency to avoid legal repercussions. This scam highlights the evolving tactics used by criminals to exploit people.

How to Avoid Falling into the Trap

To protect yourself from a crypto scam, consider the following strategies:

• Verify URLs and sources: Always check the URL of any site you visit, ensuring it is associated with a reputable organization. If something seems off, it’s best to err on the side of caution.

• Conduct due diligence: Before investing in any cryptocurrency or platform, research the project thoroughly. Look for a detailed white paper, a transparent team, and community feedback. If a project lacks these elements, it’s likely a scam.

• Be skeptical: If an investment promises guaranteed returns or seems overly lucrative, it's probably a scam. Legitimate investments come with risks, and no one can guarantee profits.

• Educate yourself on common scams: Familiarize yourself with the various types of scams and their red flags. Awareness is your first line of defense against falling victim to fraud.

• Report suspicious activity: If you encounter a potential scam, report it to the appropriate authorities, such as the Federal Trade Commission (FTC) or the Internet Crime Complaint Center (IC3). Reporting helps others avoid similar pitfalls.

The Trust Wallet Security Scanner

The Trust Wallet Security Scanner is a tool designed to enhance security in cryptocurrencies and Web3. With the increasing popularity of decentralized finance (DeFi), the need for protective measures has grown. The Trust Wallet Security Scanner proactively alerts users to risky transactions, helping you make informed decisions and maintain control over your assets. Each transaction is evaluated and assigned a risk level, with warning messages provided for potentially dangerous actions.

The Trust Wallet Security Scanner uses data from trusted security partners, including Binance Risk and Hashdit, to assess transaction risks. This is particularly important for new users who may struggle to differentiate between safe and unsafe transactions. To use the Trust Wallet Security Scanner, users simply need to download the latest version of the Trust Wallet app, which automatically integrates this feature.

The Trust Wallet Security Scanner offers an essential layer of protection, allowing users to navigate the crypto landscape with greater confidence and security. Identifying potential risks empowers you to safeguard your investments and enjoy a safer Web3 experience.

Conclusion

As cryptocurrency continues to grow in popularity, so does the sophistication of scams targeting unsuspecting users. By understanding the common scams of 2024 and employing proactive measures to protect your investments, you can navigate the crypto landscape more safely. Always remember to stay informed, be cautious, and prioritize security in your cryptocurrency dealings.

Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.

Join the Trust Wallet community on Telegram. Follow us on X (formerly Twitter), Instagram, Facebook, Reddit, Warpcast, and Tiktok

Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.