Online trading scams have been around for a while.

People make investments in binary options, stock, crypto, and other forms of currency and investment options. In doing so, they often fall victim to frauds and scams. In the past, these scams were not that widespread. However, thanks to the internet, online scams are rather common now. And at present, scammers are trying out their skills in the cryptocurrency sector.

So before you lose your money to such frauds and scams, here is everything you need to know about them, and how you can identify them.

People Can Scam You in a Variety of Ways

It is easy to scam people when it comes to crypto. Crypto has not been popular for that long. Hence, a lot of people do not know much about it. Plus, within a short time, people have grown a fascination with crypto trading. So even with their little knowledge, they tend to invest in crypto and reap its benefits. 

A little knowledge is a dangerous thing. And that is how scammers manage to make a fool out of people. There is regular news of scammers planting doubts in the minds of their victims. They will often tell you to make a transaction to keep your crypto wallet running. 

Sometimes, they will even pretend to be crypto traders who want you to invest in a brand new cryptocurrency. On top of all that, the old-school scamming techniques like fake claims, spoofing, phishing, etc. are always there. 

Scammers Often Latch onto Things that are Trending

2021 saw the birth of “Squid Coins.” These crypto coins came into existence after the success of Netflix’s hit Korean Series, Squid Games. And while the series won the hearts of millions, the cryptocurrency stole millions from people who did not know any better.

Squid Coins made over $2 million before going off the market. That gives us a valuable lesson to learn from. Just because something is trending and has crypto or NFT linked to it does not mean it is trustworthy. In the future, we will have more trends coming our way, most of them from pop culture. And you can rest assured that scammers will be looking to cash in.

Do Not Trust Celebrities Either

Celebrities do not endorse something unless they have something to gain from it. Take Elon Musk’s recent Dogecoin promotions. We might not see it now, but he is sure to gain something out of it in the future. 

Again, celebrities often have their social media accounts hacked. This happened just last July when Twitter accounts of famous people like Elon Musk, Barack Obama, Bill Gates, and many others got hacked. The hacker Tweeted from those accounts asking people to send Bitcoins to a random wallet, and that they will get twice the amount they send in return. 

Hence, do not believe celebrities and stuff you see on social media. Verify a piece of news from multiple authentic sources before you believe it.

There are Ways to Get Your Money Back

Being cautious is always the best option. However, you can always recover your lost funds if you fall victim to a crypto scam. There are trading and investment scam recovery companies that can help you out with all this. PayBack Limited is one such company. 

At PayBack Ltd., you can present your case, explain what had happened, and they will do the needful. Their approach to recovering lost funds also includes confronting the entities. That means there is a chance that they can help more people like you who got scammed by the same entities. 

How Can You Stay Away from Scams and Scammers?

The best way to stay safe from scams and scammers is by knowing how they strike. Hence, you should take note of the following.

• Never share your credentials (name, address, phone number, etc.) with anyone via email or on the phone. 
• Deal with only licensed brokers.
• Do not send anyone any money or crypto as a form of validation. Authentic traders will never ask for that.
• Keep an eye on the FBI’s website for potential scammers on the loose. That way, you will be aware of any new developments in your area or state.
• Do not fall for anything that promises an unrealistic return within a short time. These schemes do not exist and are nothing but scams.
• Avoid trading crypto if it is banned in your country or state. Scammers take advantage of such situations and try manipulating people into investing in crypto through them or other third parties. Do this, and you are eventually letting them run away with your money.

That concludes this topic of crypto scams and everything you need to know about them. Try and maintain the precautions discussed above, and you will be safe from these scammers and their scams.