Key points to remember
Scammers may create fake websites or social media profiles that mimic legitimate crypto exchanges, wallets, or investment platforms and offer non-existent or fraudulent products and services to lure users.
Fake customer service channels, where scammers pose as representatives of legitimate companies, can trick users into paying to resolve non-existent issues. These various schemes are generally categorized as fake services.
The loss of digital assets is usually irreversible, which is why Binance encourages its users to stay informed and vigilant to protect themselves.
In the crypto sphere, scammers are always looking to exploit the ignorance and negligence of some users. The irreversible nature of blockchain transactions aggravates the consequences of such scams for their victims; this is why it is essential for every crypto user to constantly inform themselves about the evolving threats.
The fake services that are the subject of today’s blog post can take a variety of forms, from counterfeit hardware and software to fraudulent services such as shipping, fund recovery, customer support (e.g., upgrading an account on a crypto exchange to VIP status), or promises to fix nonexistent account issues. All of these tactics are designed to steal funds from unsuspecting victims. Here’s what you need to know to identify and avoid these types of scams.
The mechanisms of fake services
All of these scams revolve around a counterfeit product or fraudulent service offer that aims to lure potential victims with the promise of providing value, which in turn entices users to engage with the scammer. These products and services take various forms: account verification on social media or gaming platforms, impersonating customer service agents to trick users into paying to resolve non-existent issues, etc.
Appear credible
Scammers may design professional-looking websites or use social media to establish a credible online presence. Some use branding, images, and even email addresses similar to those of the companies they want to impersonate to appear authentic.
Offer attractive deals
Scammers may claim to offer potentially useful services such as money recovery, sell products at prices significantly below market rates, or promise high returns on investment.
Collect payments and disappear
Once victims have paid for a product or service, scammers disappear without a trace: they go offline, cease all operations, and deactivate all previously used accounts and email addresses to prevent their targets from contacting them when trying to recover their funds.
Concrete examples
The “qualified” fraud expert
Mark saw an advertisement on social media advertising the services of a qualified fraud expert and blockchain developer who could allegedly recover stolen crypto. Having himself lost a significant amount of money to a crypto scam a few weeks earlier, Mark didn’t hesitate and contacted the expert to explain that he was looking for help in recovering his digital assets. The “expert” asked for an advance payment, which would supposedly be used for the recovery operation, which Mark agreed to do. However, the “expert” didn’t respond after receiving the funds, and Mark was left with no way of getting his money back.
This example illustrates how dangerous it is to communicate with people claiming to be able to recover funds, especially those who ask for an advance payment.
A crypto mining software with AI
Dennis saw a tweet advertising an AI-powered crypto mining software that promised high returns. Intrigued, he contacted the vendor, who asked him to pay to activate the software. The vendor then asked Dennis for more money to activate the license key. Dennis realized it was a scam, but he had already lost some of his funds by then.
This example highlights the need to exercise extreme caution when purchasing services or products from unknown websites, especially if they promise exceptionally high returns.
How not to fall into the trap of fake services?
Beware of spontaneous offers
Be very careful if you receive unexpected calls, emails and messages on social networks offering services that seem too good to be true.
Check the coordinates
Always check the contact information of sellers you’re considering doing business with, such as their email address or social media group. Keep an eye out for subtle spelling mistakes that scammers make when trying to impersonate reputable companies.
Find out more
Make sure you know about common scams and how they work, as this information, and your vigilance, are your best defenses against fraud.
If you have been scammed
If you are a victim of a fake service, immediately report the incident to the relevant local authorities and to the platform or messaging tool used to perpetrate the scam. Pass on the scammer’s profile name and any other details that may prevent others from falling for it. Read our blog series on scams to better protect yourself.