Source: HualihuawaiDAO
Trust a few people
Don't harm anyone
Love everyone
— — — — Preface
1. What is a cryptocurrency scam?
Cryptocurrencies are generally high-risk investments, even when purchased through legal means. First, let's understand the nature of cryptocurrency scams. A cryptocurrency scam is when an intruder steals digital assets from the holder through fraudulent means. Scammers are those who use a false name or remain anonymous to commit fraud.
2. How do scammers use psychology?
1. Establishing a persona — Ambush stage
"Character setting" refers to the setting of characters. Generally speaking, it refers to the need to interpret the accurate image of a character. In addition to the character's physical features, the character setting also includes the character's personality, the life background that made the character, and the character's abilities.
Here we first mention the Social Comparison Theory
It is a concept proposed by American social psychologist Leon Festinger in 1954. It is that each individual uses others as a comparison scale to evaluate themselves in the absence of objective conditions. Festinger pointed out that in upward social comparison, people compare themselves with those who are more socialized; in downward social comparison, people compare themselves with others in reverse. People tend to compare their own situation with others to evaluate their status, achievements and happiness.
In the crypto field, establishing a persona is a very low-cost and easy thing. Age, achievements, hobbies, language, region... these can all be rewritten, which is like writing a layer of modification code for your real life, creating another personality that does not belong to you in the virtual world. The liar has transformed himself into a battle-hardened boss in the crypto field, and then shows you his trading achievements, trading strategies, and trading methods one by one, which makes you admire and yearn for him. If you want to deceive others, you must first deceive yourself. Even the liar himself is immersed in his own disguise. You begin to yearn for a better life, and you also want to become more perfect, step by step into the "net" he has woven for you.
2. Money-making strategy — induction stage
Regardless of the social software used, the highest level of deception in the communication process is warmth + sense of humor. He will call you affectionately, answer your questions when you need him most, and even be available at any time. This behavior is to improve his credibility and authority. After a period of companionship and communication, the scammer will show you opportunities and temptations, open the door to the intricate world for you, and dazzle you.
Adults are easily tempted, and sobriety and judgment are always late. A friend in the group once said: "If you still have a centralized mindset in a decentralized world, you will definitely be deceived. In the future of cyberpunk, zero trust is very important." Human nature is profit-seeking. Under the premise that you have no relatives or friends and have never met, he answers your questions, introduces money-making projects, and takes you to make money... When did he become a life mentor you trust and rely on? Temptation is often covered with a gorgeous coat to conceal the hidden dangers.
3. Do as I say — Locking the target stage
In the crypto space, don’t be led by the market, let alone by any so-called “successful person”. Some words need to be listened to carefully, while others need to be judged calmly. A friend in the group once said: “If you don’t know who is providing the income, then you are the one providing the income.” Don’t touch it if you don’t understand it.
Previous articles have mentioned many times that if you want to trade, you should choose official tools, use trusted encryption platforms, find formal projects, and go through formal channels. To avoid these "right paths", you must activate your own vigilance. This vigilance is like a talisman around you. It is a good habit to stay vigilant in transactions. When it comes to authorization, providing mobile phone numbers and ID numbers, entering passwords, and money transactions, you must think twice before acting, make the worst plan, and make the best preparations. Every action must be responsible for your own safety.
How to protect yourself from cryptocurrency scams
1. Be wary of unfamiliar calls and emails.
2. Reject investment proposals from friends, because your friends may have been scammed, but unknowingly recommended the scammer to you.
3. Don’t believe in promises of risk-free and high returns.
4. Do not save passwords on your computer.
5. Improve cognition.
4. Common cryptocurrency scams
1. Pyramid Scam
Also known as a "Ponzi scheme". This is a prototype of a financial pyramid in which scammers offer "their investors" the opportunity to make a lot of money by attracting new participants. Payments are made from the funds of newcomers, not actual profits. In this case, participants are recruited into such a fraudulent project, but usually once the new investors deposit their funds, the scammers disappear forever.
2. ICO Scam
A type of scam associated with Initial Coin Offerings (ICOs) in which several forms of fraud are practiced. First, so-called cryptocurrency promoters raise funds for an ICO and then disappear. Second, developers can defraud investors by launching an ICO on a fake exchange. Third, there are bounty scams, where there are allegedly not enough funds to pay rewards to project promoters. These are the most common types of scams associated with ICOs.
3、Rug Pulls
This scam is closely related to ICOs. In "Rug Pulls", intruders create a new cryptocurrency or DeFi project, attract investors, wait for funds to come in, and then suddenly withdraw all funds one day. The project and its founders then disappear completely, and investors lose their funds.
4. Phishing
In this case, scammers send people emails containing malicious links. They pretend to be websites offering lucrative investment opportunities to lure users in. Once the user clicks on it, the scammers obtain the user's personal data, such as cryptocurrency wallet addresses, keys, or PIN codes. Once the funds are stolen, the wallet itself usually disappears as well.
5、Pump-and-Dump
This scam mainly targets small amounts of cryptocurrencies. Its essence is that scammers artificially increase the value of assets, misleading potential investors into believing that these coins are worth little (pumps). In this way, they exploit investors' fear of missing out on a unique opportunity. Later, the attackers will sell the coins, which were initially purchased at a favorable price, at a higher price (dumps).
6. Fake exchanges
Cryptocurrency exchanges are the most popular platforms for trading digital assets. That is why scammers often take advantage of this and create fake websites. The main feature is that such websites usually offer unusually favorable conditions — for example, no transaction fees and no registration are required.
7. Cloud Mining
This type is associated with fake exchanges, as it is on fake platforms that it appears. Scammers involved in cloud mining offer users the option of renting equipment to work and receive a portion of the profits. In reality, they do not own any equipment and, after receiving the funds, disappear as usual.
8. Social media scams
Scammers use social media to spread false information, such as fake ads or fake promotions about cryptocurrencies. To gain trust, they create fake accounts and even impersonate celebrities. Their most common method is to send private messages to users, promising a large return for a small upfront payment, but in reality nothing is given.
9. Live streaming scam
The intruders create fake live broadcasts on video sites such as YouTube, impersonating well-known influencers. During the live broadcast, they promote new cryptocurrency promotions and opportunities, which are of course fake. They encourage viewers to send cryptocurrency to a specified address, promising a larger amount in return, but in reality, they keep all the funds received for themselves and do not give any return to the audience.
10、Pig-Butchering
In this scam, the intruder establishes a long-term relationship with the victim, usually through a dating app. Once trust is established, the scammer convinces the victim to invest a small amount of money in a fake crypto platform that shows positive returns. As soon as the user invests more, the scammer cuts off the relationship and makes it impossible for the user to withdraw funds.
postscript:
A friend in the group once said: "People always mistakenly trust the authorities and think they have profound predictive abilities about the market."
The best lie in the world is not to confuse right and wrong, but to tell only part of the truth that is carefully selected. We are impacted by the tide of information every day, always wandering at the junction of black and white. In fact, the one who steers the ship for ourselves is always ourselves!