Cryptocurrency investment comes with significant risks, and scams are constantly on the rise. Scammers prey on investors' desire for high returns to devise new scam tactics that can be difficult to spot. In this article, we'll break down common investment scam tactics and share effective preventative measures to help you safeguard your digital assets.

 

I. Common Scam Tactics

1. The Promise of High Returns
Scammers often lure users with promises of "high returns" and "guaranteed profits" to entice them into joining fake investment schemes. They may pose as official platforms and create fake transaction records to make users believe they can earn easy profits. Once users are hooked and have invested significant funds, the scammers disappear along with the funds and supposed earnings, leaving the users with substantial financial losses.

2. Directing Users to Withdraw to Scam Platforms
Scammers bait users with promises of high returns and direct them to trade on fraudulent platforms. They may initially allow users to make small profits to build trust. Once users invest larger sums, they start facing constant losses, or the scammers freeze their accounts and suspend withdrawals.

3. Tricking Users with Deceptive Marketing Events
Scammers entice users with fake events like airdrops or token swaps. During withdrawals, they may use malware to alter the user's withdrawal address or redirect them to a scam platform, leading to financial losses.

4. Fake Guarantees
Scammers often make enticing claims like "guaranteed high returns within 24 hours" to put investors at ease. By creating a false sense of security and reliability, they convince investors that it is a safe opportunity to lure more people into their trap.

5. Partnership Trading Scams
Scammers often lure users to invest under the guise of a "partnership trading" scheme. They carefully create the illusion of mutual benefits and shared success to lower the victim's guard. Once the victim invests their funds, the scammers will disappear along with the funds.

6. Participating in Fake Order Schemes
Scammers often create fake investment records and exaggerated returns to pose as "investment gurus." Sometimes, they build false trust through online relationships or social connections. Once they’ve earned the victim’s trust, they lure them into well-crafted investment scams.

7. Deposit/Guarantee Scams
Scammers often use terms like "guaranteed transactions" or "platform-guaranteed" to lure users into depositing funds as a guarantee or escrow. Once the user makes the transfer, the scammer quickly deletes their account or blocks the user, making it impossible for the victim to recover their losses.



II. How to Prevent Investment Scams

1. Be Cautious About Promises of High Returns
Stay vigilant when presented with investment opportunities that guarantee high returns. Terms like "high returns," "expert-guided trades," "arbitrage," "generate interest," "swap," "scaling," or "mining" are often used to trap investors. If an investment offers returns far above the market average without a reasonable explanation, it is likely hiding significant risks. Investors should remain rational and thoroughly verify the legitimacy of any investment project. Avoid trusting promises of extraordinary profits. Before transferring your digital assets to unknown platforms, conduct thorough market research to understand what constitutes reasonable returns in the current market.

2. Be Cautious of Unrealistic Guarantees
Scammers often lure investors with claims like "0 risk" or "guaranteed high returns in 24 hours." Keep in mind that the investment market is unpredictable, and there’s no such thing as a completely safe investment. High returns typically come with high risks. Stay vigilant and skeptical of any offer that seems too good to be true.

3. Be Wary of Invitations from Strangers
Approach investment invitations from strangers with caution. Always verify the person's identity and the legitimacy of the investment project through reliable channels before you invest. Stay alert to promises of high returns, unsolicited private messages, and suspicious links.

4. Choose Your Trading Platform Carefully
To safeguard your investments, it’s essential to select your trading platform prudently. Avoid trusting recommendations from strangers, engaging in private transactions, or being directed to use specific investment platforms. Opt for reputable, well-established trading platforms with broad user recognition to keep your funds safe. Always review the platform’s terms of service and security policies thoroughly, and verify its legitimacy through trusted sources.

5. Stay Alert at All Times
Investing is a long-term endeavor that requires rational judgment and a clear mind. Be extremely cautious if you receive requests to invest more funds or prompts to transfer your digital assets to other platforms. Don't be swayed by words like "urgent" or "limited-time offer" into making hasty decisions. Before making any investment, it's advisable to conduct thorough research, verify with the platform's official customer support, or consult professionals to ensure the safety of your funds.

6. Protect Against Information Leaks
Be extra cautious when handling sensitive account and asset information. Never share your screen, take photos, or send screenshots that could expose your personal information and lead to unnecessary losses.

7. Strengthen Security Awareness
The investment world is constantly evolving, with new scams emerging all the time. Protect your assets by staying informed on the latest scam tactics and sharpening your risk awareness. Make it a habit to learn about emerging scams and how to avoid them. Additionally, share investment safety tips with your family and friends to help foster a secure and reliable investment environment together.

8. Invest Rationally
Investing is a marathon, not a sprint. Creating a detailed investment plan is essential for achieving long-term and stable returns. When faced with market fluctuations or unexpected events, stay calm and don't let emotions take control. Don’t be easily swayed by external influences or unsolicited investment advice. Refrain from making impulsive decisions in moments of panic. Staying composed and rational is key to navigating complex markets and building stable returns.