Cryptocurrency fund scams: techniques and prevention
Cryptocurrency fund scams are becoming increasingly sophisticated. Scammers exploit the lack of knowledge, the allure of quick gains, and the relative anonymity of this ecosystem to trap their victims. Here are the most common scam techniques and warning signs to protect yourself.
1. Fake platforms and fake projects
Fake websites and applications: Scammers create perfect copies of legitimate exchange platforms or wallets. These sites often have a very similar URL but with a typo or one character missing. Once you enter your information (password, recovery phrase), it is immediately stolen.
Rug pulls: This English term means "pulling the rug." The team of a cryptocurrency project raises funds from investors, then suddenly abandons the project and disappears with the money. Often, the team is anonymous and the promises of return are unrealistic.
Fake ICOs (Initial Coin Offering): The scammer offers to invest in a new cryptocurrency by promising exorbitant returns. The project is fictitious, has no serious white paper, and the team is not verifiable.
2. "Phishing" and social engineering
Phishing: You receive an email or message that seems to come from a legitimate exchange platform or crypto company. The message encourages you to click a link to "verify your account," "recover funds," or "participate in an airdrop." The link leads you to a fake site to steal your credentials and private keys.
The "sentiment" scam ("pig butchering"): The scammer builds a trusting relationship with the victim (via social media, dating sites), posing as a friend or potential partner. Once trust is established, they convince the victim to invest in a fraudulent crypto project, presenting it as a safe and lucrative opportunity.
Identity theft: Scammers impersonate celebrities, influencers, or reputable companies on social media. They spread fake articles, fake videos (sometimes with AI), or messages to encourage investment in fraudulent platforms.
3. Promises of gains and manipulations
Promises of guaranteed returns: No investment is without risk, especially in cryptocurrency. Scams often promise unrealistic and guaranteed returns, such as "+10% per day." This is a clear sign of fraud, often of the "Ponzi scheme" type (the first investors are paid with the money from new investors until the system collapses).
The "pump-and-dump": Scammers aggressively promote a little-known cryptocurrency to artificially inflate its price (the "pump"). Once the price peaks, they suddenly sell all their shares (the "dump"), leaving other investors with a worthless cryptocurrency.
4. Refund scams
Scam within the scam: After falling victim to a first scam, a new person (posing as a lawyer, collection agency, or public authority) contacts you and promises to recover your lost funds. To do this, they ask you to pay "administrative fees" or an additional "tax," which you will never see again.
Signs of alert to protect yourself:
Promises of returns that are too good to be true: A high return always comes with a high risk.
Pressure and sense of urgency: You are pushed to invest quickly by insisting that it is a "limited opportunity."
Lack of transparency: The project team is anonymous, the website is not professional, and there are no clear documents (white paper, roadmap).
Unsolicited communications: Be wary of unexpected messages from strangers, especially if they talk to you about investment.
Request for personal information: Never share your recovery phrase, private keys, or credentials. No one needs this information to help you.
Lack of regulation: Check if the platform is registered with the financial regulatory authorities in your country (like the AMF in France).
In case of doubt, the best thing to do is to refrain from investing and conduct thorough research. The AMF (Financial Markets Authority) and other regulatory bodies regularly publish blacklists and warnings regarding unauthorized platforms.
