In 2024, crypto scams have reached alarming levels. Over $4.6 billion was stolen from crypto users in 2023, with total illegal crypto transactions estimated at $24.2 billion. The rise in scams is driven by the anonymity of crypto, lack of regulation, and the technological complexity that confuses many. With scams becoming more sophisticated, it is crucial to stay informed and protected.
In this blog, Nilsen Consulting, a leading crypto recovery company, explains the most common crypto scams of 2024 and offers guidance on what to do if you become a victim.
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Fake Cryptocurrency Exchanges
The most common scam in the crypto space today is fake cryptocurrency exchanges. These fraudulent platforms lure users with promises of high liquidity, low fees, and great trading opportunities.
Once you deposit your funds, you might either get locked out of your account or find that your digital assets have vanished. The infamous FTX collapse which left $8.7 billion in missing funds is a harsh reminder of the risks of unverified exchanges.
How To Tackle it: If you have been scammed by a fake exchange, report the scam to local authorities and reach out to a trusted crypto recovery service like Nilsen Consulting. Their team can trace and recover stolen assets, using their expertise in blockchain technology to help you get your funds back.
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Cryptojacking
Cryptojacking is another big threat to individuals and organizations in 2024.
This type of scam involves hackers using the computational power of unsuspecting users’ devices to mine cryptocurrencies. The malware runs in the background, consuming a lot of CPU and GPU resources. It eventually leads to slow device performance and high energy consumption. Victims are usually unaware of the scam until they receive high electricity bills or notice their device is slow.
How To Tackle it: To prevent crypto-jacking, update your devices with the latest security patches, use good antivirus software, and do not click on suspicious links or download unknown files.
If you think your device is infected, disconnect it from the internet and reach out to cybersecurity experts.
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Blockchain-wide Attacks
Blockchain-wide attacks target the very core of cryptocurrency networks, exploiting their vulnerabilities. The most famous one is the 51% attack where an entity gets control of more than 50% of a blockchain’s mining power – they can then manipulate transactions and double-spend cryptocurrency. Other types of attacks like Sybil attacks and routing attacks are also a threat to the security and integrity of blockchain networks.
How To Tackle it: If you are a victim of a blockchain attack, stop all transactions and consult with blockchain security experts. They can help you assess the damage and explore recovery options if your assets were affected by the attack.
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Pump-and-Dump Schemes
Pump-and-dump schemes have been going wild in 2024, targeting lesser-known cryptocurrencies.
Scammers artificially pump up the price of a digital asset by spreading false information and creating a buying frenzy. Once the price peaks, they sell their holdings, and the price crashes leaving investors with big losses.
How To Tackle it: To avoid getting caught in a pump-and-dump scheme, always do your research before investing in any cryptocurrency. Be cautious of unsolicited investment advice and verify all information.
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Fake ICOs
Initial Coin Offerings (ICOs) have been a way for cryptocurrency startups to raise funds but also a breeding ground for scams. Fake ICOs promise revolutionary projects but once they have raised enough funds, the scammers disappear, leaving investors with worthless tokens.
How To Tackle it: Before investing in any ICO, research the project, team, and business plan. Look for transparency and accountability. If you have been a victim of a fake ICO, report the scam to authorities and contact recovery firms to explore retrieval options.
Wrapping Up
2024 is shaping up to be a wild ride in the world of cryptocurrency, full of both opportunities and risks. While the excitement of potential gains is real, so is the danger of falling into a scam. Staying vigilant and cautious is your best defense. But if the worst happens, remember that companies like Nilsen Consulting are here to help you handle the complex process of recovering your lost or stolen cryptocurrencies.
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