Crypto Tricks: Unmasking Clever Scams
In the fast-changing world of cryptocurrencies, some people use smart ways to trick others. They steal money by promising big rewards or using fake identities. This report tells you about these tricks, how they work, and how to stay safe.
Crypto Scams: Growing and Changing
Crypto scams are becoming more common and making more money. In 2024, they got at least $9.9 billion[1]. Some scams, like ‘pig butchering’ ones, grew by almost 40% in one year[1]. These scams often start in big groups in Southeast Asia and use smart computers to fool people[1].
Types of Crypto Scams
Pig Butchering Scams
In these scams, people trick you into thinking they’re your friend. They say they have great investment ideas, but it’s all a lie. They use smart computers to make fake profiles and messages. A company called Huione Guarantee helps scammers do this[1].
Rug Pulls
In ‘rug pulls’, people start a project, get others to invest, and then run away with the money. They do this on websites where you can easily trade tokens without checks[5]. Some big cases, like AnubisDAO and SQUID, showed how harmful these scams can be[5].
Crypto ATM Scams
Some people use crypto ATMs to trick others. They might pretend to be tech support or a government official to get money[1]. In the U.S., people lost ten times more money to these scams in 2021 than in 2020[1].
Smart Computers Help Scammers
Scammers use smart computers to make fake profiles and messages. This makes it hard for people to tell if something is real or fake[1].
How to Fight Back
To stop these tricks, we need to work together. Police, rules makers, and companies should all help. We can use smart computers to spot scams and make rules to protect people[1].
Looking Ahead: Keeping Crypto Safe
A Call to Action
As crypto changes, we need to stay one step ahead of scammers. We can use smart computers to help, not hurt, people. If we work together, we can make crypto safer for everyone.
Source: Chainalysis
Note:
This report was written for 9th graders. It uses simple language and breaks down long paragraphs. It also has clear subtitles and uses transition words.
