ETH scams can be found in a variety of forms. These can include mining pool scams, extortion scams, investment scams, and phishing scams. These can be difficult to recognize, so you need to know what to look for.
ETH investment scams
ETH investment scams are scams that take advantage of people who don’t understand cryptocurrencies. Scammers make big claims, without explaining why or how the money will be used. They will then make you sign a contract or transfer money.
The scammers also trick people into sharing their private keys. This means that they can gain access to their wallet and empty it without their permission.
The scammers are often based outside of the U.S. They may impersonate a bank, Microsoft, Amazon or FedEx. They use social media platforms to reach out to potential victims. They will then lead the victims to buy or send cryptocurrencies to a wallet address.
Scammers often promise large returns and a quick return. These promises often make people reluctant to invest. They also can create a false sense of urgency, encouraging people to make poor decisions.
ETH mining pool scams
ETH mining pool scams promise big returns but often fall short. Scammers promise a large return for minimal investment. They then try to convince you to join their ETH mining pool.
To ensure your wallet remains secure, never give out your password or private keys. If you want to check out a mining pool, check with a trusted third party.
Oftentimes, scammers will attempt to lure you in with a “dazzle” of some sort. The scam can be anything from fake airdrops to fraudulent mining pools.
Scams usually take the form of an unsolicited direct message. A scammer will claim to be the owner of an “invisible smart contract” that will “liquidate all funds” in your wallet.
Scammers will also often claim to have a “secret loophole” that allows them to stay in contact with you for as long as you need. They will use any means necessary to swindle you out of your hard earned money.
Explicitly referred to as “ransomware,” extortion scams are an evolving form of malicious malware. They can wreak havoc on airports, hospitals, and other sensitive locations, and demand payment in Bitcoin or other cryptocurrencies.
According to the FBI, extortion makes up 7% of spear-phishing attacks. They are most likely to be perpetrated by hackers using old, compromised credential lists. These hackers use sophisticated techniques to circumvent email security.
The best way to protect yourself from these malicious emails is to keep your operating system and software up to date. You should also scan for malicious websites and programs on your computer.
In many cases, extortion scams are carried out via email. However, it is also possible for scammers to create fraudulent websites or phone calls. The scams often involve impersonation.
Several kinds of phishing scams are targeting the cryptocurrency market. Some of the scams are stealing funds from users and others are trying to make money off of investors. These scams are criminal extortion and blackmail, and they should be avoided.
Many of the scams involve fake airdrops, which require investors to send a small amount of crypto to a fake account. Scammers then report the fake coins to the media and make money off of them.
Another type of scam involves fake websites that ask users to input their seed phrase, password or wallet permissions. They will then send the funds to an unknown address.
Scammers often create a fake website, impersonating a real company or a well-known individual. They might also create news articles and social media ads.
Ethereum merge scams
During the Ethereum merge, fraudsters stole $1.2 million in Ether. The Ethereum Foundation issued a warning to users during the event. However, it did not go into specifics. The fraudulent activity took place during the event and on several days following.
Scammers tried to convince users to swap their ETH for a token they dubbed ‘ETH2’. However, the ‘ETH2’ token has never been confirmed by the Ethereum Foundation.
The scams also referred to “airdrops,” where victims receive fake tokens in their wallets. The scams involve a support agent who pretends to offer help to a victim. They then trick the victim into sending money to their account.
The fraudster also claims to return the victim’s initial payment in double the amount. However, the scammer will take control of the victim’s wallet when they attempt to claim their reward.