Source: Talk Li Talk Outside DAO
Trust a few people
Harm no one
Love everyone
— — — — Motto
One, what is a cryptocurrency scam?
Cryptocurrencies are generally high-risk investments, even when purchased through legitimate means. First, let us understand the nature of cryptocurrency scams. A cryptocurrency scam refers to intruders stealing digital assets from holders through fraudulent means. Scammers are those who commit fraud using pseudonyms or remain anonymous.
Two, how do scammers exploit psychology?
1. Establishing a persona — Ambush stage
The 'persona' refers to the character setting; simply put, it means to portray an accurate image of a character. Apart from the character's physical features, the persona also includes the character's personality, background, and abilities.
Here we should mention the Social Comparison Theory.
This concept was proposed by American social psychologist Leon Festinger in 1954. It suggests that individuals, in the absence of objective criteria, use others as a benchmark for self-evaluation. Festinger pointed out that in upward social comparisons, one compares with more socialized individuals; in downward social comparisons, reverse comparisons are made. People tend to compare their situations with others to assess their status, achievements, and happiness.
In the crypto field, building a persona is very low-cost and easy. Age, achievements, hobbies, languages, regions... these are all things that can be rewritten, akin to writing a layer of embellishment code over one's real life, creating another personality that does not belong to oneself in a virtual world. Scammers transform into seasoned big shots in the crypto field, showcasing their trading achievements, strategies, and methods to inspire admiration and aspiration. To deceive others, one must first deceive oneself. Even the scammers themselves become immersed in their own disguise; they start to yearn for a better life and aspire to be more perfect, gradually stepping into the “web” they have woven for you.
2. Money-making strategy — Induction stage
Regardless of which social software is used, the highest level of deception is warmth + humor. They will greet you kindly, answer your doubts when you need it most, and even be available at your beck and call. This behavior increases their trustworthiness and authority. Over a period of companionship and communication, scammers will present you with opportunities and temptations, opening the door to a complex world that dazzles you and leaves you in awe.
In the adult world, it is easy to be tempted, and clarity and judgment always come too late. A partner in the group once said: 'If you still hold onto centralized thinking in a decentralized world, you will surely be deceived. In the cyberpunk future, the idea of zero trust is very important.' Human nature is profit-seeking, and under the premise of not knowing someone personally, answering questions for you, introducing money-making projects, taking you along to make money... when did they become the trusted life mentor you rely on? Temptations often wear a glamorous exterior to conceal the hidden dangers within.
3. Do as I say — Target locking stage
In the crypto field, do not let the market lead you by the nose, nor should you be led by the nose by any so-called 'successful people.' Some words need to be listened to carefully, while others require calm judgment. A partner in the group once said: 'If you do not know who is providing the returns, then you are the one providing the returns.' It is essential to avoid what you do not understand.
Previous articles have repeatedly mentioned that if you are trading, you should choose official tools, use trusted crypto platforms, look for legitimate projects, go through proper channels, and stay alert to these 'normal' routes. This alertness serves as your protective talisman. Maintaining vigilance while trading is a good habit; anything involving authorization, providing phone numbers and ID numbers, entering passwords, or financial transactions should be carefully considered, prepare for the worst, and be ready for the best. Every action must be taken responsibly for your own safety.
Three, how to protect oneself from cryptocurrency scams
1. Be wary of unknown calls and emails.
2. Refuse friends' investment proposals, as they may have been scammed but unknowingly recommend scammers to you.
3. Do not believe promises of risk-free high returns.
4. Do not save passwords on your computer.
5. Enhance cognition.
Four, common cryptocurrency scams
1. Pyramid scheme
Also known as a 'Ponzi scheme.' This is a prototype of a financial pyramid where scammers offer 'their investors' opportunities to earn large amounts of money by attracting new participants. Payments come from the funds of newcomers rather than actual profits. In this case, participants are recruited into this fraudulent project, but typically, once new investors deposit funds, the scammers will disappear forever.
2. ICO scams
A type of scam associated with Initial Coin Offerings (ICO) that involves several forms of fraud. First, so-called cryptocurrency promoters raise funds for the ICO and then disappear. Secondly, developers can deceive investors by launching an ICO on fake exchanges. Thirdly, there are reward scams where it is claimed that there is not enough money to pay project promoters. These are the most common types of scams associated with ICOs.
3. Rug Pulls
This type of scam is closely related to ICOs. In 'Rug Pulls,' intruders create a new cryptocurrency or DeFi project, attracting investors, waiting for funds to be deposited, and then suddenly withdrawing all funds one day. The project and its founders then completely disappear, leaving investors without their funds.
4. Phishing
In this scenario, scammers send emails containing malicious links to people. They disguise themselves as websites offering lucrative investment opportunities to attract users. Once users click, scammers obtain personal data such as cryptocurrency wallet addresses, keys, or PIN codes. Once the funds are stolen, the wallet itself often disappears as well.
5. Pump-and-Dump
This type of scam mainly targets a small number of cryptocurrencies. Its essence is that scammers artificially inflate the value of assets, misleading potential investors into believing that these coins are undervalued (pumps). By doing so, they exploit investors' fear of missing out on unique opportunities. Afterwards, attackers sell the coins they initially purchased at a discount for a higher price (dumps).
6. Fake exchanges
Cryptocurrency exchanges are the most popular platforms for trading digital assets. This is why scammers often exploit this by creating fake websites. The main feature of such websites is that they usually offer unusually favorable conditions — for example, no trading fees and registration required.
7. Cloud mining
This type is related to fake exchanges, as it occurs on fake platforms. Scammers involved in cloud mining offer users options to rent equipment for mining and share part of the profits. In reality, they do not own any equipment and disappear as soon as they receive funds.
8. Social media scams
Scammers use social media to spread false information, such as fake advertisements or false promotions about cryptocurrencies. To gain trust, they create fake accounts and even impersonate celebrities. Their most common method is to send direct messages to users, promising high returns for small upfront payments, but in reality, they deliver nothing.
9. Live streaming scams
Intruders create fake live streams on video platforms like YouTube, impersonating well-known opinion leaders. During the live stream, they promote new cryptocurrency promotions and opportunities, all of which are fake. They encourage viewers to send cryptocurrency to specified addresses with promises of greater returns, but in reality, they keep all the funds received and give viewers no returns.
10. Pig-Butchering
In this type of scam, intruders often establish long-term relationships with victims through dating apps. Once trust is established, the scammer persuades the victim to invest small amounts in a fake crypto platform that shows positive returns. As soon as the user invests more, the scammer cuts off contact and makes it impossible for the user to withdraw funds.
Postscript:
A partner in the group once said: 'People always tend to believe authorities, thinking they have profound predictive abilities about the market.'
The best lies in the world do not distort black and white but only state carefully selected partial truths. Every day we are bombarded by a tide of information, constantly teetering on the edge of black and white; in fact, the one steering our own ship is always ourselves!