Investment scams are most common [among crypto scams] and are surprisingly simple,” says Nick, senior forex and cryptocurrency analyst at Forex Fraud. You’ll find them all over social media (think spam comments on posts promising a giant chunk of change from crypto investments), dating sites and spam emails. There’s even a form of phone scam in which a fraudster pretends to be an investment manager who can earn you big bucks.
How it works: Scam artists convince victims to invest in cryptocurrency by promising outlandish, guaranteed returns, playing on crypto’s reputation as a volatile asset. After their initial payment, victims see evidence of huge profits, which convinces them to invest even more. If they get cold feet and ask for a withdrawal, the scammers tell them to pay a fee. “The profits are fake, of course, and the victim will never see a penny of them.