Cryptocurrency has taken the world by storm, opening doors to exciting new opportunities. But with every revolution comes its dark side — and in the world of crypto, that dark side often exists on the dark web. The very features that make cryptocurrencies appealing — like anonymity, decentralization, and lack of regulation — are exactly what make them a magnet for fraudsters. In this article, we’ll dive into the most common dark web crypto scams.
What are Crypto Scams?
Similar to other financial scams, cryptocurrency scams target your cryptocurrency assets rather than your money. Many of the strategies used by cryptocurrency fraudsters are also used in other financial crimes. Such as pump-and-dump schemes that try to steal digital assets or trick investors into buying an item by making false promises about its value.
Crypto scams may entail gaining access to an individual’s cryptocurrency wallet or persuading an investor to transmit a digital asset as payment for a fraudulent transaction. Getting victims to divulge personal information or transfer valuable digital assets, such as non-fungible tokens (NFTs), to the perpetrator’s account is always the aim. The quick conversion of cryptocurrency to fiat money, ready-to-use third-party transaction apps, and sophisticated obfuscation techniques make it an especially attractive tool for malicious actors.
5 Dark Web Crypto Scams and Frauds
1. Phishing Scams
Online cryptocurrency wallets are the subject of phishing attacks. The person or organization committing the fraud wants to find the private keys to your wallet, which might allow anybody to access the money kept there. Scammers frequently ask holders to enter their private keys in emails that contain links to phony websites. They can take the cryptocurrency once they know this information. One of the most common tactics used by dark web scammers is phishing crypto scams.
2. Blackmail or Extortion Scams
Blackmail, also known as extortion, is one of the oldest crypto scams in history. It involves receiving a message claiming that someone has sensitive information about you, such as private documents, images, or videos. However, that person claims that he or she will release this data on the dark web and request payment.
When the fraudster asks for payment in cryptocurrency, it turns into a cryptocurrency scam. This is frequently done since the victim cannot undo the transactions and because Bitcoin provides anonymity. It is difficult for law enforcement to track illicit payments because of their complexity and anonymity. These messages should be deleted, and the sender should be reported to the appropriate authorities.
3. Crypto Mining Scams
Mining is the term for businesses that let you rent mining equipment they run in return for a set price and a cut of the profits you intend to generate. Theoretically, this enables remote mining without the need for costly mining equipment. Nevertheless, a lot of dark web crypto mining businesses are frauds or, at best, inefficient. In the end, you wind up losing money or making less than what was promised.
4. NFT Scams
Non-fungible tokens (NFTs) are assets whose ownership is tracked in a blockchain and which can represent either digital or physical products. The number of NFTs that have been produced and marketed has skyrocketed in recent years.
While many of these NFTs are genuine and enable individuals to purchase one-of-a-kind artwork or other assets, some dark web scammers have exploited NFTs to defraud investors. As with any investment, there are no assurances, so keep an eye out for anyone promising NFTs with growth promises. Verify NFTs’ backgrounds twice because some people fabricate dramatic tales about artists in an attempt to boost sales and unfairly raise prices.
5. Crypto Scams Exchanges and Wallets
Scammers will occasionally set up fake cryptocurrency wallets and exchanges on the dark web to steal your money. It might be challenging to tell these fraudulent platforms apart from the actual ones because they frequently have the same appearance. They use alluring offers, such as cheap prices, excellent security, or exclusive features, to entice victims. However, after you open an account and deposit money, the scammers take the money and then vanish.
FAQs
Q: What is cryptocurrency?
ANS: Cryptocurrency is a type of digital or virtual currency that uses cryptography (secure coding) for security. This security makes it difficult to counterfeit or double-spend. Unlike traditional currencies issued by governments (like the U.S. dollar or the euro), cryptocurrencies operate on decentralized networks, typically using a technology called blockchain.
Q: How to avoid becoming a victim of crypto scams?
ANS: Here are some tips to avoid crypto scams:
- Keep your wallet secure
- Avoid random text and calls
- Too good to be true offers
- Urgent investment opportunities
- Be cautious of social media hype
- Use reputable companies
Q: What to do if you get trapped in a crypto scam?
ANS: If you get trapped in a crypto scam you should report to the right authorities and the relevant platform ASAP.