Background

In recent years, some criminals have illegally profited using new concepts like 'blockchain' and 'virtual currency', committing fraud. Investors should be cautious of scams under these banners, avoid blindly trusting promises of high returns, establish correct monetary concepts and investment ideas, and enhance risk awareness.

Whether it’s a stranger, acquaintance, or even oneself, anyone can become a victim. To help everyone guard against such scams, this article will analyze common fraudulent methods through examples and provide response strategies.

Written in advance

  1. Protect existing assets: In the crypto world, only what you control is your wealth.

  2. Source of information selection: Try to avoid using unreliable search engines like Baidu. Verify information multiple times when obtaining it.

Common types of scams

Based on the information compiled, fraudulent activities can be categorized into the following types, each containing multiple subtypes.

1.1 Fiat currency trading scams

Method: Conducting private transactions via WeChat, Alipay, or bank cards, refusing to transfer coins after receiving payment, or refusing to pay after receiving coins.

Response methods:

  • Do not accept offline transactions lured by strangers with cheap prices.

  • Conduct offline transactions only among acquaintances or with a trustworthy intermediary's guarantee.

1.2 Phishing website scams

Method: Forging pages of well-known exchanges or private placement websites to induce users to input account information, verification codes, etc., to steal digital assets.

Example:

  • Downloading fake wallets leads to asset theft.

  • Using Baidu search accidentally enters phishing software, and the account is stolen.

Response methods:

  • Only download commonly used wallets through official channels. Below are some official website addresses for commonly used wallets:

    • imToken：https://token.im/

    • TokenPocket：https://www.tokenpocket.pro/

    • Metamask：https://metamask.io/

1.3 Impersonating platform staff or law enforcement to commit fraud

Method: Impersonating customer service or law enforcement, claiming account risks, and asking users to click links to log in and provide sensitive information.

Example:

  • Impersonating customer service of exchanges like Binance and Huobi to commit fraud through phone calls or messages.

Response methods:

  • Legitimate exchanges will not proactively contact users by phone.

  • Hang up and block any similar calls immediately.

1.4 Online pyramid schemes and investment funds disguised as 'blockchain'

Method: Criminals use concepts like 'blockchain' and 'virtual currency' to design high-yield models to attract investors, which are actually pyramid schemes.

Example:

  • A victim was added to a group where a shill displayed high returns daily, ultimately losing hundreds of thousands.

Scam characteristics:

  • Fabricating complex stories to attract attention.

  • Packaging with technical terms like 'decentralization' and 'open-source'.

  • The trading platform's server is located overseas for easy escape.

Response methods:

  • Remind elderly family members to avoid being deceived due to lack of technical knowledge.

1.5 Online dating and pig slaughter schemes

Method: Approaching victims through online dating, friendships, or impersonating investment mentors to induce them to recharge or transfer money.

Scam characteristics:

  • Using high returns as bait to promote 'quickly achieving financial freedom'.

  • Most people in the group may be fake, only the victims are real.

Response methods:

  • Beware of high-return projects that seem too good to be true.

  • Do not trust investment opportunities recommended by strangers.

Summary

  • Protect assets: Only the assets you control are safe.

  • Information verification: Confirm the authenticity of information from multiple sources before downloading software or investing.

  • Beware of scams: Avoid blindly trusting high-return promises and remain rational.