In 2024, cryptocurrency frauds persisted, wreaking havoc on the internet and frightening away investors. This post will look at the most notable cryptocurrency scams of 2024. We will discuss how the scammers’ strategies have changed, who they’re targeting, and key tips to stay safe.
Genesis Heist: Multimillion-Dollar Fraud
The robbery of $243 million from a Genesis creditor was one of the most notable heists in 2024. Phishing and social engineering techniques, such as pretending to be from reputable companies like Google and Gemini support, were used to pull off this theft. To cover their tracks, the criminals used AnyDesk, a remote desktop service, to obtain private keys. They then moved the stolen assets across other exchanges and cryptocurrencies. Only two people have been taken into custody thus far, but this incident shows how vulnerable even large institutions may be (Benzinga).
Romance and Social Media Scams on the Rise
Fraudsters have found new ways to make money off of romance scams, and they’re taking advantage of the rise of social media to trick unsuspecting victims. To get victims to send money or invest in Bitcoin, con artists frequently pretend to be romantically involved with them. There have been rumors that these con artists may also use social media accounts that have been “seasoned” to make themselves look more legitimate. Because of the millions of dollars lost to romance scammers, the FTC and the FBI have cautioned users to be wary of online love interests requesting money (BeInCrypto, Brave New Coin).
Deepfake QR Codes and Scams Rise
Using phony QR codes, a method known as “quashing” by con artists to trick unsuspecting people, has grown in 2024. Scam websites prey on users’ insecurities by directing them to these bogus codes. Scammers are taking advantage of deepfake technology to pose as well-known people on YouTube, luring victims in with promises of huge returns on cryptocurrency investments while pretending to be Elon Musk or Brad Garlinghouse, the CEO of Ripple. Scammers have made over $600,000 from these schemes, and efforts to create detection systems have not been successful (BeInCrypto).
Fake Trading Bots and Discord Hacks
Concerns about fake crypto trading bots have grown in recent years as con artists use the appeal of AI to offer implausible profits. Such automated programs frequently entice users with false testimonials from famous people. Investors should be wary of trading bots and other unproven algorithms that offer huge returns without proper verification, according to a warning from the US Commodity Futures Trading Commission (CFTC). Aside from that, hackers have also attacked Discord, a popular network for crypto followers. Attackers have taken advantage of loopholes in Discord bots and utilized hacked admin accounts to disseminate phishing links, causing substantial financial harm, especially in communities dealing with non-fungible tokens (NFTs) (BeInCrypto).
Toxic Wallet Addresses
Scammers use address poisoning to transmit small transactions from a legal wallet address. This fraud pretends that victims can send cryptocurrency to criminals by copying and pasting the poisoned address. Short-term con artists use Bitcoin transactions more since they are decentralized and irreversible (Brave New Coin).
The Biggest 2024 Threat: Investment Scams
Regarding financial losses, investment frauds continue to rank at the top. An FBI analysis states that investment scams caused almost $3.9 billion in damages in 2023, and the number of victims is expected to keep climbing in 2024. Constantly demanding cryptocurrency payments and making implausible profit promises are hallmarks of these con artists. Thanks to cryptocurrency’s anonymity and decentralized nature, scammers can carry out cross-border operations with little chance of detection. Brave New Coin is just one example of how the FBI has asked investors to be vigilant about frauds like this by being careful with unsolicited offers and reporting anything fishy.
Key Takeaways and Prevention Measures
The year 2024 has seen an alarming rise in the sophistication and frequency of cryptocurrency scams. Here are some critical measures you can take to protect yourself:
- Be Cautious of Phishing and Social Engineering: Verify any request for personal information, even if it comes from a legitimate source like Google or a known exchange.
- Avoid Unsolicited QR Codes: Treat QR codes cautiously, especially those received via email or pasted in public, as they could lead to phishing sites.
- Do Not Fall for Unsolicited Offers: Offers promising guaranteed high returns are often too good to be true. Avoid any investment with pressure tactics or requests for personal information and payments in crypto.
- Protect Your Crypto Wallet: Carefully verify wallet addresses before sending funds. Be cautious of small, unsolicited transactions in your transaction history, as they could be part of an address-poisoning scam.
- Report Suspicious Activity: Even if you have not lost money, reporting suspicious activity can help law enforcement track these scams and reduce their impact on others.
The bitcoin business is always developing, so users and investors must stay informed, cautious, and secure their investments. Blockchain and cryptocurrencies have many possibilities for growth, but they must stay safe from bad actors.
Also Read: Philippine Central Bank Chief Denies Crypto Endorsement Claims
