What is a scam?

What is a scam?

The term “scam” came from the English word “scam”, which translates as “fraud”.

Initially, they called scammers those who extorted money by phone calls and emails. A cryptocurrency bench is fraudulent schemes in which digital currencies or fiat money stealing, using the trust of their owners.

Do not confuse scammers with hackers who hack cryptocurrency wallets and abduct users. Unlike them, scamers convince the victim to independently transfer funds to them.

What are the types of scam?

Scammers constantly create new ways of deception, but several main schemes can be distinguished.

Imitation of famous projects and people

A classic type of scam – extortion under the guise of a famous person or company on social networks or on YouTube. Typically, on social networks or open an account on behalf of a famous person, which is associated with some kind of famous crypto project.

Further on his behalf they announce the “advertising campaign” or the “free” distribution of cryptocurrencies. In order to participate in it, you need to “just” transfer to the specified address the cryptocurrency to a small amount. In return, the fake account promises to “return” the more amount. After sending crypto assets, scammers are hiding.

In addition, they often publish fake “direct broadcasts” of previously recorded interviews on YouTube, which impose their address to obtain cryptocurrencies. These videos are promoted in advertising networks on sites with pirate content.


The most famous type of fraud, which has also passed into the scope of cryptocurrencies from the industry of traditional finance. Any pyramid (in the crypto community is often used the term “Ponzi scheme”) is built on the promises of a large and quick income from investments of the participants.

In fact, the founders of the pyramid do not carry out any real work. If they pay income, then only a few depositors and only at the expense of the new participants. Ultimately, the organizers of the scheme assign their accumulations, and the pyramid falls apart.

The founders of many modern pyramids often imitate cryptocurrency investment products, since the price of some popular coins grows much faster than classical financial tools.


Eccid-canes-sophisticated type of fraud. It differs from fake tokens in fact Purchasing electronics that the project does not receive funds through fundraising, but through a plausible imitation of this activity. For example, scamers can start an application with a minimum set of functions, which involves the transfer of cryptocurrencies to their account supposedly for some services.

Some pseudo-projects only promise the result and create the appearance of some kind of work. Their representatives participate in conferences and give interviews, but the planned launch of the product is constantly tolerate. Sooner or later, the organizers of the scheme disappear. It can be difficult to recognize the eccipam to an ordinary user, but experts and technical specialists can conduct their investigation and publicly expose scammers.

Sometimes the eccipam occurs in working applications, the founders of which unreasonably and unexpectedly stop working and hide with users. In rare cases, cryptocurrency exchanges can do this, whose leaders can steal users, masking this under the hack.

PUMP scheme & DUMP

This type of fraud is associated with the release of token. To organize a PUMP scheme & DUMP on the market produces a cryptoactive that is not provided with a working product, funding, or command. However, they try to connect it with some kind of hype event-for example, with a film or a series, giving a coin as his “official” asset. So, for example, the creators of the Squid Game token, who positioned it as an asset allegedly from the creators of the series “Game in Kalmar”.

If the scammers manage to organize the excitement around their token, they wait until its price rises due to high demand, and then they start to sell tokens sharply. As a result, the issuer earns and throws further support of the asset, and its holders remain with nothing worthless.

In order not to fall into the tricks of scammers, follow a simple, but effective rules:

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