These are the top 5 Crypto Scams to Avoid in 2024.

As the calendar turns to 2024, cybercriminal threats to the crypto market have increased. In fact, hackers have been using sophisticated methods to separate investors from cryptocurrencies. According to Chinalysis, illegal addresses will earn more than $24 billion by 2023, a reminder of the ongoing threat.

The proliferation of scams ranging from ransomware and phishing emails to dark net marketplaces underscores the need for caution among crypto enthusiasts. So, here are the top crypto scams to avoid in 2024.

Beware of funny attacks

One trick is to “swear.” This method involves sending spoofed SMS messages pretending to be from reputable sources such as cryptocurrency exchanges. Basically, the goal is to trick recipients into revealing sensitive information or clicking on malicious links.

The term “phishing” combines “SMS” and “phishing”, indicating that the behavior is a text message phishing attack. IBM describes phishing as a social engineering attack aimed at getting individuals to put their safety at risk.

To prevent this threat, users are advised to investigate the origin of text messages and avoid suspicious communications.

For fraudulent scams in the crypto market, a major event is the large cryptocurrency exchange that includes Binance. The platform and its users have been the targets of strange experiments. Primarily, scammers send SMS messages impersonating Binance asking for user credentials and other confidential information.

In a separate case, Binance customers in Hong Kong lost nearly $500,000 to these SMS scams. This incident highlighted the vulnerabilities associated with SMS communication and the sophisticated techniques that fraudsters use to make their messages look legitimate, such as SMS spoofing.

The rise of love scams

Love scams or “pig-bull” have shown great growth, losses in billions of dollars. These scams use social media, dating apps and other platforms to build trust with potential victims before eventually asking for cryptocurrency under disguise.

According to the Federal Trade Commission (FTC), dating scammers bilked cryptocurrency victims of an estimated $139 million last year. These scammers often start a relationship through dating apps or social media, quickly express love, and steer the conversation to lucrative crypto investments to scam victims.

Read more: Crypto Social Media Scams: How to Stay Safe

The FTC has warned of online romances that ask for money or suggest crypto investments, indicating a possible scam.

“They plan to visit but tell you they've been delayed by expensive problems: a lost airline ticket or visa, a medical emergency or a closed account. They said they can still come to you if you send them money. But you know your online love interest is a scam the minute he asks for money,” the FTC wrote.

The FBI has also reported a trend where dating fraudsters increasingly pressure victims to invest in cryptocurrency, leading to huge financial losses. In 2022, 19,050 victims reported losing $739 million to romance scams, with a significant portion of these scams involving fake crypto investments.

“Online dating is commonplace today, but unfortunately scammers thrive on those same sites as well. If you're looking for love or friendship online, make sure you first understand the dangers of exploitation. Remember, a scammer will always ask you for something, so set boundaries early and never, Never send money to someone you don't know,” said FBI agent Sherry E. Onks.

Fake QR codes: a new scam

Fake QR codes known as “Kishing” have become a scam targeting individuals in a variety of ways. This crypto scam involves the use of a QR code which, when scanned, redirects victims to fraudulent websites.

These sites pretend to be legitimate payment platforms, tricking users into entering their personal and payment information, which fraudsters can use for fraudulent purchases or sell on the dark web.

YouTube channels have become the latest battleground for mystery scams. Indeed, attackers such as Elon Musk, Ripple CEO Brad Garlinghouse, and MicroStrategy's Michael J. The scammers use deep fake videos to create the illusion of legitimacy, promising viewers a huge return on their crypto investment.

Although cyber security companies have tried to develop detection tools, these scams have proved difficult to eradicate. The technique uses unauthorized live streams, QR codes, and malicious links to trick viewers into sending cryptocurrency under the guise of doubling their investment, only to make off with the money.

YouTube's massive user base, totaling 2.70 billion active accounts, presents an attractive target for these criminals. With millions of subscribers, some channels are used to impersonate popular brands, with scammers making more than $600,000.

To protect against these scams, the FBI recommends treating QR codes with the same caution as suspicious emails. Always verify the source before scanning a QR code. If the QR code is in a public place, look for signs of tampering or alteration. Be wary of unsolicited QR codes sent by email and avoid scanning them.

“Some scammers are physically posting fake codes on the legit. If code looks broken, don't use it. The same goes for any legal notices you receive or post. Finally, consider using antivirus software that provides additional security for QR readers before opening the link,” the FBI wrote.

By actively following and practicing these precautions, one can be protected from scams.

The threat of fake trading bots

The proliferation of fake crypto trading bots has been a major concern in the cryptocurrency industry. Indeed, various scams target investors hoping to benefit from automated trading systems. These scams often promise unrealistic returns, using artificial intelligence (AI) to create the appearance of legitimacy.

Additionally, they may use fake celebrity endorsements to add credibility to their schemes. Investors are advised to be wary of platforms that display fabricated numbers, verify company listings, assess the quality of language on their websites, and search for user complaints on user forums and sites such as TrustPilot.

The US Commodity Futures Trading Commission (CFTC) has issued a warning about AI trading bots, stressing that they often make huge crypto profits without any real basis. Therefore, investors are encouraged to carefully research the providers and avoid putting their money in algorithms that claim great returns without proven evidence.

“When it comes to AI, this advice to investors is ‘beware the dance.' Unfortunately, AI has become another way for bad actors to defraud unsuspecting investors,” said OCEO Director Melanie Davey.

The warning is part of a broader effort to educate investors about using arbitrage algorithms or social media scams.

Discord Hacks Target Crypto

Discord is a popular communication platform in the crypto community. However, it has become a hunt for hackers. By compromising admin accounts, cybercriminals distribute fake ads and links, causing financial losses to unsuspecting users.

These crypto scams specifically target non-cash token (NFT) projects. In fact, there has been an alarming rise in phishing attacks through Discord, with millions of dollars lost. These attacks are sophisticated using social engineering techniques such as phishing and exploiting vulnerabilities in Discord bots such as Mee6.

The attackers are focused on creating a sense of urgency around NFTs to trick users into clicking on malicious links.

One notable example of this type of attack was against the creators behind the Board Up Yacht Club (BAYC) collection on Yuga Labs' Discord server in 2022. The social manager's verified Discord account was compromised, and the attackers used it to post promotional texts and lead to a phishing site, tricking users into sending Ethereum (ETH) as payment. This led to the theft of NFTs from the wallets of the victims.

To protect against such scams, individuals should be wary of attack viruses that are common on platforms like Discord. Being aware of phishing attacks that use FOMO-inducing language is critical to reducing the risk of falling victim to these scams.

Read more: 15 most common crypto scams to look out for

As society and law enforcement work to improve security measures, users must protect their assets and personal information from these sophisticated cybercriminals.