Bitcoin Email Scams 2024: Protecting Yourself from Online Investment Scams

Bitcoin email scams are on the rise, with over 50% of reported cases involving fake investment opportunities in 2024. Scammers are getting more sophisticated, using convincing email templates and even mimicking legitimate companies.

Be cautious of emails that promise unusually high returns or guarantee investment success. In 2024, over 70% of reported scams involved promised returns of 10% or more per month.

Don't fall for the temptation of easy money. Scammers often use fake email addresses and websites to create a sense of legitimacy, but a quick check can reveal the truth.

Investors should be aware of the warning signs, such as poor grammar and spelling in the email, or a lack of personalization. In 2024, over 60% of reported scams had noticeable grammar and spelling errors.

Cryptocurrency scams can be broadly categorized into two types.

The first type involves scammers trying to obtain access to a target's digital wallet or authentication credentials. This can include attempts to get security codes, or even physical access to hardware like computers or smartphones.

The second type involves schemes that directly transfer cryptocurrency to a scammer, often through impersonation, fraudulent investment opportunities, or other malicious means.

Here are some common types of cryptocurrency scams:

Business Opportunity Fraud is a common type of crypto scam, where scammers promise unusually high returns to lure investors in.

In 2023, a reported $3.9 billion was lost to crypto investing fraud, a staggering reminder of the risks involved. Be cautious of websites offering "guaranteed returns" or other setups that require large investments.

Legitimate businesses will not ask you for your private keys to help you with an action, so be wary of communications that do. Conduct research on every project to learn about the team behind it.

Countless profit-seeking speculators turn to misleading websites, convincing investors to transfer cryptocurrency to a new exchange or platform, claiming it has very high returns. Once the investor transfers crypto, the scammers continue to build trust by publishing false high returns on the platform.

The most common type of crypto investing fraud is convincing an investor to transfer cryptocurrency to a new exchange or platform, claiming it has very high returns. The scammers then lock the account and ask for taxes or fees before taking the cryptocurrency and shutting down the platform.

FTX, a popular cryptocurrency exchange, is a prime example of a business opportunity fraud. The exchange's founder, Sam Bankman-Fried, was found guilty of wire fraud, conspiracy to commit wire fraud, and other crimes.

Beware of high-return promises or pressure tactics that encourage quick decisions. Look for red flags such as a lack of transparency or anonymous developers, which can indicate a scam.

Nothing is ever free, especially money and cryptocurrencies. Many cryptocurrency scams offer free coins or promise to “drop” coins into your wallet, so be cautious of such offers.

ICOs and NFTs are ripe for scams. Scammers create fake websites for ICOs and instruct users to deposit cryptocurrency into a compromised digital wallet.

Some ICOs are at fault themselves, distributing unregulated tokens or misleading investors through false advertising. This can lead to significant financial losses for unsuspecting investors.

Scammers often use fake websites to lure people into investing in ICOs. These websites may look legitimate, but they're designed to steal your money.

Investors should be cautious of ICOs that promise unusually high returns or seem too good to be true.

Account Takeover (ATO) scams are a type of attack where cybercriminals gain unauthorized access to user accounts, often through weak or compromised passwords, social engineering, or exploiting security vulnerabilities.

They can steal funds, change account details, or make unauthorized transactions once they have control of the account.

ATO scams often involve impersonating prominent figures in the cryptocurrency world, such as influencers, project founders, or celebrities.

These impersonators may offer fake giveaways, 'exclusive opportunities,' or investment advice to deceive victims.

In some cases, hackers target the accounts of well-known businesses, brands, or public figures, using their profiles to promote fraudulent tokens or investments, creating a false sense of legitimacy.

If a "trusted" entity demands cryptocurrency for any reason, it's a sign that something's amiss, so be cautious and verify the authenticity of the request.

Pig Butchering scams are particularly effective against individuals new to cryptocurrency or the elderly. They often start with a scammer building a trusting relationship with the victim through social media or dating apps.

The scammer will introduce the victim to a lucrative cryptocurrency investment opportunity, convincing them to invest large sums of money into a fake scheme. This can be devastating for the victim, who may have lost their entire savings.

The name "pig butchering" refers to the process of slowly fattening up the victim emotionally and financially before ultimately stealing their funds. This is a highly sophisticated scam, involving fake websites, fake testimonials, and even fabricated customer service representatives to maintain the illusion of legitimacy.

Phishing and Imposter Scams are on the rise in the cryptocurrency world, with over 300,000 people falling victim to phishing scams in 2022 and 298,000 in 2023, collectively losing $52.1 million in 2022 and over $18.7 million in 2023.

Scammers often impersonate trusted entities, such as exchanges, wallets, or well-known projects, to trick users into disclosing sensitive information. They may send emails with links that lead to specially created websites, asking users to enter private keys.

More than 300,000 people fell victim to phishing scams in 2022 and 298,000 in 2023, collectively losing $52.1 million in 2022 and over $18.7 million in 2023, according to the FBI.

Phishing and Imposter Scams are common tactics used by scammers to trick people into handing over sensitive information or funds. Over 300,000 people fell victim to phishing scams in 2022 and more than 298,000 in 2023, collectively losing $52.1 million and over $18.7 million respectively.

Phishing scams often involve scammers impersonating trusted entities, such as exchanges, wallets, or well-known projects, to trick users into disclosing sensitive information. These scams can take many forms, including fraudulent emails, text messages, and fake websites that mimic legitimate platforms.

Be cautious when receiving unsolicited emails, social media messages, or phone calls, especially those claiming to be from cryptocurrency exchanges or wallet providers. Scammers often impersonate legitimate entities to trick you into providing sensitive information.

Legitimate businesses will not correspond with you via social networks or text messages. They also will not ask you for your private keys to help you with an action.

Scammers may also pose as celebrities, successful businesspeople, or cryptocurrency influencers to capture the attention of potential targets. They promise to match or multiply the cryptocurrency sent to them in what is known as a "giveaway scam."

Romance scams are a type of phishing where scammers use dating websites to build relationships with unsuspecting individuals.

In 2022, the FBI found that over $735.8 million was lost in romance scams.

Scammers often shift conversations to supposedly lucrative cryptocurrency opportunities once the individual trusts them.

More than $652.5 million was stolen in romance scams in 2023, according to the FBI.

These scammers may ask for cryptocurrency or account authentication credentials, or help a loved one in a financial bind with cryptocurrency.