Cryptocurrency

Cryptocurrency Scams and Prevention

What is Cryptocurrency?

Cryptocurrency is a digital currency where transactions are verified, and records are maintained by a decentralized system using cryptography. Unlike traditional money, it does not rely on banks or centralized authorities. Funds are stored in digital wallets secured by complex alphanumeric codes.

Common Cryptocurrency Scams

1. Kiosk/ATM Deposit Scam

Fraudsters trick victims into depositing cash into cryptocurrency kiosk/ATM and then provide wallet details to transfer the funds directly to the scammer.

2. Romance Scam

Targeting older adults, scammers pose as romantic partners from abroad. They claim to need cryptocurrency for travel or emergencies, often draining victims’ savings through repeated requests.

3. Free Giveaway Scam

Victims are told they’ve won prizes (like a Tesla) but must pay delivery or customs fees in cryptocurrency. Scammers continue to demand more payments under false pretenses.

4. Ransomware Scam

Pop-up messages warn of computer viruses and urge victims to pay for “repairs” via cryptocurrency. Clicking these messages leads to fraudulent payment requests.

5. AI Voice Scam

Using artificial intelligence, scammers mimic the voices of relatives, claiming urgent needs such as bail money. Victims are pressured to send cryptocurrency quickly.

Prevention Tips

• Verify requests: Always confirm with relatives or trusted contacts before sending money.
• Contact authorities: Report suspicious activity to local police.
• Stay educated: Awareness of scams is the strongest defense.

Key Takeaway

Cryptocurrency itself is legitimate, but scammers exploit its anonymity and irreversible transactions. Education and verification are essential to avoid becoming a victim.