The Biggest Scams in 2021

Some examples of today’s big scams and hacks are making their way into the future. Here are five scams that might appear in 2021.

Fraudulent ICOs

Unscrupulous startups with no track record of innovation and claims of a real, live ICO on the horizon may be trying to scam investors. Oftentimes, their pitch is vague. They might simply say “transfer X to make the purchase” and create a website that sounds credible, with a dedicated support email and limited time to complete their promised ICO.

Know what you’re signing up for when you commit funds to these products. These could be hot scams that disappear once the money is invested.

Hacking Bitcoin Exchanges

Bitcoin is safe because it isn’t tied to any government or company that can be hacked or stolen.

How To Protect Yourself Against Scams

More Scams for Kids

In another scam targeting children, a scammer pretended to be a teacher with the alter-ego ‘Steve Simmons’ on Twitter. According to CyberSecurity Ventures, more than 100,000 people were fooled into sending him money – the exact amount of which is still unknown. The man had posed as a teacher for elementary school children. Because he was pretending to be a teacher, most of the victims sent him a sum between $50 and $100. The ploy worked so well, because the suspect even thanked his victims for sending him money.

The Dangers of Fake News

Although not the most common scam, fake news is a big problem – particularly in Europe and North America.

How to know if a company is legitimate

More scammers are surfacing every day, making it harder to discern legitimate firms from scams. If you’re the victim of cryptocurrency fraud, you have several options, but you should do your research before you act.

The simplest step is to report the fraud to the authorities. For this, you can contact your bank, your exchange, and even the U.S. government.

If you’re a digital currency novice, don’t rush into anything. Test your new investment by sending the cryptocurrency to the wallet address you found on the company’s website or on the source code, which you’ll find in the form of an API key. You’ll know you’ve verified the company if you receive your digital coin (or any of its cryptocurrencies) back in your wallet.

Conclusion

So now you’ve learned about a few of the biggest scams plaguing the cryptocurrency world. Whether they affect you personally or not, these warning signs might make your crypto investment more secure. Remember, though, that being wary is a win-win. You won’t be swindled out of your hard-earned money, and you’ll know that you’ve made the right decision to invest in crypto. So, be smart about your money!