How to Survive Scams is a series of weekly blog articles examining and detailing the most common crypto scams.
Key takeaways
The Binance Risk Management team has rounded up 12 of the most common crypto scams, including romance scams, impersonation scams, and fake contests, to name a few. -ones.
Each week, we will analyze a new scam and its mechanisms, and we will offer general recommendations for identifying and avoiding it.
Perhaps it's a message sent by a so-called "Binance employee" via Telegram, an urgent phone call from a distant relative who needs money, or a smooth talker who declares his love for you for a far from modest sum. Scams come in many forms, but they all have one common goal: to steal your money.
An urgent text message asking for financial assistance, a fictitious competition to win bitcoins; the tactics used can be enough to manipulate users and gain their trust, especially Internet users going through a period of vulnerability.
This article is the first in a series of articles with a broader scope, aimed at combating scams by presenting the most well-known scams in the crypto sector and the best practices to adopt to avoid them. We pass on this information to provide our users with the most up-to-date security advice, because ultimately the protection of their funds is largely up to them.
Overview of the 12 types of scams
Our risk management team has identified and categorized the most common crypto scams into 12 categories below, summarizing the mechanics of each.
Each week, we will analyze a different scam and its mechanisms, and we will offer general recommendations for identifying and avoiding it. Now let's look at these 12 categories.
1. Investment scam
In an investment scam, the scammer promises you a high return if you invest your money using a website, app, or crypto broker that they “highly recommend.” He can even pose as an expert who will multiply your funds a hundredfold.
2. Employment scam
The job offer may seem real, and the salary quoted is well above the industry average; but there is a catch. Scammers using this scam send a tempting job offer, which requires payment of a fee to land the position.
3. Impersonating an authority figure
Scammers may impersonate a well-known person, such as a member of law enforcement or a government or tax office official, to try to gain your trust.
4. Impersonation of a Binance customer service employee
Impersonating a Binance customer service employee is unfortunately a tactic that scammers often resort to in the crypto world. Scammers generally try to exploit the trust that Internet users have placed in our company to manipulate them and extract their money.
We remind you that Binance employees will never send you a direct message or ask for your sensitive information. If you receive a message from an alleged Binance employee, block that contact and report it to Binance Customer Support immediately.
5. Romantic scam
In the case of a romance scam, a potential partner attempts to establish an online relationship with you in the hope of extracting money from you. These scams can sometimes last for years, and the smooth talker or seductress will start by borrowing small amounts from you before asking for your entire savings.
6. Fake competition
The scammer will invite you to join a Telegram group or Discord server in order to participate in a fake contest or fake crypto airdrop. They will usually ask you to pay a fee, or try to pressure you into disclosing sensitive information to collect your “winnings”.
7. Ponzi Pyramid
Ponzi schemes are a type of scam in which early investors are paid with funds and commissions earned by later investors. No investment is real: the scammer simply takes money from one investor to pay another. People involved in a Ponzi scheme are usually encouraged to include their friends and family.
8. Fake online store
Fake online stores are designed to replicate legitimate e-commerce websites. On some of them, it is even possible to register as a merchant or user. The site may encourage you to buy its merchandise by offering you prices significantly lower than the average market price. However, the items ordered will never be delivered to you or you will receive items of no value.
9. Money transfer scam
In a money transfer scam, someone contacts you claiming to have sent money to your bank account. It will provide you with evidence of this transaction before canceling it, requesting a chargeback or claiming that the evidence has been tampered with.
10. Scam by an acquaintance
The scammer is not always a stranger: it could be a relative, a close friend or an acquaintance that one of your friends introduced you. A scam can and often does take place in a familiar environment.
11. Rug pull
In the crypto sector, a rug pull refers to a situation where a crypto project team raises investment funds and then suddenly abandons the project, withdrawing all of its liquidity. A rug pull generally takes place when investor interest in the project is highest.
12. Other Types of Scams
This category brings together unique scam situations, the characteristics of which do not correspond to any of those previously mentioned.
Three examples in action
Here are some examples of ways a scammer can target you.
Example #1: Fake Investment
A user, whom we will call Jack, sends a first message to the scammer, whose contact details he most certainly obtained on another social network. The scammer promotes an extremely profitable investment program, which guarantees high gains.
Jack agrees to invest money in this program, but later realizes that this contact stole his money.
Example #2: Employment Scam
A user, whom we will call Mike, receives a rather vague job offer with an attractive salary. The scammer promises Mike that the company will pay him once he completes a series of missions. The company does not exist, and the scammer will ask Mike to pay a fee in order to carry out the missions in question.
Example #3: Impersonating a Binance Customer Service Employee
A user, who we'll call Lily, joins a Telegram group made up of fake "Binance employees" who offer unique services with a high return. After several deposits to the wallet addresses listed in the group, Lily has yet to receive any response.
Conclusion
We hope that users will use this information to make better decisions within the crypto ecosystem. If you think you are the target of a scam, even if it is a vague doubt, stop responding to messages, interrupt any transfers in progress and report your situation to Binance customer service immediately. We will help you as best we can based on the evidence you provide us.
For more information
(FAQ) How do I report a scam to Binance Customer Support?
(Academy) 8 Common Bitcoin Scams and How to Avoid Them
Disclaimer and Risk Warning: This content is presented to you “as is” for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial advice, nor as a recommendation to purchase a specific product or service. Prices of digital assets can be volatile. The value of your investment may go down as well as up and you may not get back the amount you invested. You are solely responsible for your investment decisions and Binance is not responsible for any losses you may incur. This does not constitute financial advice. Please see our Terms of Use and Risk Disclaimer for more information.
