🚨 Help Me Stop Scams In Crypto By Sharing Your Experience 🚨

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The Bitcoin Consultancy
🚨 Help Me Stop Scams In Crypto By Sharing Your Experience 🚨
By David Veksler • Issue #7 • View online
Hi there,
I’ve helped thousands of people with their crypto wallets since 2017, but there’s nothing I can do to return stolen coins. It’s frustrating to me and I want to do more to help.
I’ve seen scams in crypto and DeFi rise dramatically in 2021, and I think the crypto ecosystem can do a better job in UX design and education to prevent scams.
In addition to the 2000+ cases I’ve come across, I’m conducting this survey to get better data on how scams affect this space. I will use this information to compile guidance on UX design and education for crypto ecosystem providers.
Please complete this survey if you’ve lost money or come across crypto scams. The resulting whitepaper will be shared freely with crypto ecosystem participants.

Common scams in crypto and DeFi
Sometimes it’s obvious that a scheme is a scam. In other cases, it’s a grey area. For example, are copycat coins, pyramid schemes, and vaporware coins necessarily scams? In crypto, there is a spectrum from obviously legitimate to obviously scam schemes, with the exact divide being a gray area.
With that in mind, here are the most common categories of crypto scams I’ve come across:
  • Fake investment platform/honeypot: a fake trading service that takes your money with the promise of high returns from “trading.” However, it’s impossible to withdraw your “profits.”
  • Phishing: a service that collects your logins and/or personal information, then uses that to steal your money
  • Advance-fee scam: a platform promises to return a multiple of whatever you invested, but disappears
  • Celebrity impersonation: a variety of advance-fee scam where the scammer pretends to be a celebrity
  • Rug pull: a DeFi scam where a coin is released, and promoted, then all the value is stolen from the liquidity pool
  • Exit scam: a project sells a coin in an ICO, but instead of using the funds to build a project, the promoters take the money and disappear
  • Ponzi scheme: project promises high returns, then pays investors with funds from new deposits
  • Crypto wallet “validation“: a type of phishing attack that impersonates a real wallet and asks for your seed words.
  • Counterfeit coin: a Defi scam where promoters sell a fake and worthless copy of a real coin.
  • Wallet dusting: scammers airdrop a token with a URL in the name of your wallet. When you visit the URL, it tries to steal your money
  • Giveaway scam/fake airdrop: to claim “free” coins you must turn over credentials that allow scammers to steal your coins.
  • Scam coins: A catch-all category for projects that don’t have a legitimate business model and whose promoters simply try to collect as much money as possible without delivering anything of value.
Note: these categories aren’t mutually exclusive.
Did you enjoy this issue?
David Veksler

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