7 most common crypto scams and how to avoid them

Crypto transactions are a fast, barely traceable way of transferring money worldwide. That’s why this is such an attractive asset to “bad actors”. At CEX.IO, we always go the extra mile to protect your databases and data, however you are the only one responsible for ensuring access to your own account and assets. Always keep your login credentials such as emails, username, passwords, withdrawal pin code (WPC), 3DS code, etc.

We’ve already written several articles in our blog describing some of the popular crypto scams, how to spot them, and what to do if you realize you’ve been cheated. Check them out:

In this post, we’ll tell you more about some of the most common scams and how to spot and avoid them.

How to spot a scam

Being vigilant is always essential, and there are clear signs of scams you can look out for. Let’s remember red flags that could help you spot a scammer:

  • The scammers’ offerings are too attractive. Get easy money or double the profit? Too good to be true!
  • A scammer usually tries mislead you. You tell me I’ve earned some money, but have to pay some amount up front to get the prize? Aha-aha! No way!
  • They are guess at your privacy. Send me an email with some sweet offer and a malicious software attachment. Don’t click on it!
  • They are short on time and try create a sense of urgency. The less time you have to think, the more chance to get into the trap.
  • They’re trying scare you. You can hear that something is wrong with your card, account, or computer and offer to fix it if you give them your references. And no-no big!
  • They are difficult. Pseudo-representatives of the company can ask for your personal information and payment details. Don’t trust them!

By avoiding these traps, you can better protect your holdings. Now read more about the the most popular ways scammers can use to hunt down your sensitive funds and information.

1. Phishing emails

Even if you’re new to crypto, you’ve probably heard of the practice of phishing. It typically involves the scammer impersonating a company representative or support agent to extract personal data from you. They can contact you via email, social media couriers, phone and fake websites.

Phishing emails are becoming an increasingly more serious problem, leading to huge financial losses. In essence, scammers cheat when crypto exchanges or traders cheat people to transfer money to them.

Beware of emails that are allegedly sent by the services you use and call for urgent action. This could be the email to reset the password or it can be a link to start some kind of interaction with your account. If you didn’t ask for a password reset, why would you follow the instructions? If someone else could access your references and initiate this action – don’t confirm it anyway! By following the links in suspicious emails you are helping scammers get your money.

You can find the difference between a fake email sent with the purpose of hacking into your account and a legitimate one sent by a company / service you use. Pay attention to the sender’s name and domain name. Even a small typo in the email can indicate fraud.

CEX.IO emails have the cex.io. domain name at the end of the sender’s address. For example, emails from [email protected], no-re[email protected], and any other emails from domain @ cex.io are legal.