Cryptocurrency scams have increased with the rise in popularity of cryptocurrency as an investment option, particularly when markets surge and the ensuing FOMO causes even the savviest investors to occasionally let their guard down. Scammers and fraudsters utilize a variety of strategies to trick investors and take their money.   Quick Getaway: Looking for a safe platform that offers the most secure cryptocurrency trading platform? Signup with  Coinlocally and enjoy the best Cryptocurrency trading strategies.  Table of Contents • The FTC Study about Cryptocurrency Scammers  • What did the investigation uncover? • Crypto Scams to Avoid at All Costs Social Engineering Scams Phishing Scams Pump and dump schemes Scam apps Fake celebrity endorsements Giveaway scams Blackmail and extortion scams Cloud mining scams • How to Recognize Cryptocurrency Scams Guaranteed returns A poor or non-existent whitepaper Excessive marketing Unnamed team members  Free Money • How to protect yourself from crypto scams Protect your wallet Pay careful attention to your wallet app. Buy only things you are familiar with and understand. Take your time Avoid cold calls Use Only Official and the Best Crypto Trading Platforms and Exchanges to Download apps Do research Avoid too-good-to-be-true offers • Conclusion The FTC Study about Cryptocurrency Scammers  According to an FTC study from 2022, scammers frequently use cryptocurrencies to steal people’s money. Crypto transactions are a prime target for scammers because there is no centralized authority to identify questionable transactions and they cannot be undone. With a median loss of $2,600, approximately 46,000 victims have reported losing over $1 billion in cryptocurrency scams since 2021. Since many victims prefer to maintain their anonymity, the actual figure is probably far higher.   What did the investigation uncover? • The cryptocurrency that is most commonly used to pay scammers is Bitcoin, which is followed by Tether (USDT) and Ether (ETH). • Social media advertisements, posts, or messages were the source of 50% of reported crypto fraud losses. • Surprisingly, Telegram, Facebook, WhatsApp, and Instagram are the leading platforms for losses. • The most prevalent form of cryptocurrency fraud loss, accounting for $575 million since 2021, is investment fraud. • Second place goes to romance scams, which cost $185 million, with a $10,000 median loss per victim.      Crypto Scams to Avoid at All Costs It is crucial for you to be aware of these risks and take precautions for safeguarding your funds from crypto fraud. Here are some of the most significant cryptocurrency fraud risks for 2023 and beyond, along with an explanation of how they operate. Please be aware that some of these dangers overlap with one another; for instance, social engineering scams include phishing attacks and other tactics.   1. Social Engineering Scams Social engineering is the method used to get unauthorized access to private data, cryptocurrency wallets, or accounts, as well as to trick victims into installing malware on their computers and networks and therefore cause more damage. Social engineering frauds utilize psychological duping to get their victims to hand over their cryptocurrencies. Always be skeptical of any unsolicited offers or demands, and confirm the identity of the person or entity you are working with, to avoid falling victim to this kind of con. These methods cover a variety of strategies, including:  • Baiting is when someone’s greed is used, as with free media downloads. • Pretexting is when an assailant poses as a reliable person, like a police officer or a doctor. • Tailgating is when a scammer gains physical access to a business by convincing a worker to let him or her in. • Quid pro quo attacks, in which a reward is guaranteed in exchange for providing sensitive information, like a study, are a sort of tailgating, where a con artist gains physical entry to a business by convincing an employee to permit him or her.   2. Phishing Scams Phishing scams have one major objective: to trick cryptocurrency holders into giving up sensitive personal information, such as their login information for crypto exchanges or a private key or recovery seed, and then to exploit that information to steal their money. Fraudsters accomplish this by posting links to phony websites or information-gathering apps in emails or social media communications. Avoid clicking on any indirect links and always go to the website’s main page. The use of phishing scams to target the unaware clients of businesses like Coinbase, OpenSea, and Ledger through emails, social media posts, and SMS texts (Smishing), after first hacking the databases containing personal user information of those organizations, has been very successful in the past.   3. Pump and dump schemes Through an email blast or social media sites like Twitter, Facebook, or Telegram, con artists will hype up a certain coin or token. Tradesmen hurry to purchase the coins because they don’t want to miss out, which raises the cost. After successfully driving up the price, the con artists liquidate their shares, which leads to a crash as the asset’s value rapidly drops. This can occur in a matter of minutes.   4. Scam apps Scammers frequently use bogus apps that can be downloaded from Google Play and the Apple App Store to deceive cryptocurrency investors. These bogus apps are swiftly identified and taken down, but that doesn’t mean they aren’t having an effect on many bottom lines. Numerous people have downloaded phony cryptocurrency applications.   5. Fake celebrity endorsements To attract potential targets, cryptocurrency scammers occasionally adopt celebrity, corporate, or influencer personas or make claims about endorsements from these individuals. This occasionally entails marketing fake cryptocurrency to unsophisticated investors. Sophisticated websites and pamphlets that purport to have celebrity endorsements from well-known figures like Elon Musk are sometimes used in these scams.   6. Giveaway scams In what is known as a giveaway scam, the con artists here claim to equal or multiply the cryptocurrency handed to them. Clever messaging from what frequently appears to be a legitimate social media account can engender a sense of legitimacy and urgency. People may send money rapidly in