Welcome to Recovery

What Is a Cryptocurrency Scam? Common Tactics Used to Steal Your Crypto



Cryptocurrency has seen both incredible growth and a surge in threats. In February 2022, the Wormhole cryptocurrency platform lost a whopping $320 million in a cyber attack. Sadly, this isn’t a one-off story. According to the Federal Trade Commission (FTC), cryptocurrency scams have run off with more than $1 billion since 2021.


Cryptocurrencies like Bitcoin use blockchain technology with no centralized control. This has made it very challenging to recover stolen funds.


And scammers aren’t stopping anytime soon. Even though cryptocurrency is still new, scammers use old tricks to perpetrate the scam. The FTC’s report says that over 46,000 folks reported losing more than $1 billion to various crypto scams from January 2021 to June 2022.


Why are people falling for it? Well, most of us aren’t skilled enough to understand how digital currency works and how to keep it safe. 


With the rise of cryptocurrency scams, crypto scam recovery services in USA like Costner Recovery have been thriving in the industry. 


If you’re thinking about diving into the crypto world or already have some digital assets, then this blog is for you! 


Get ready for a lowdown on the common crypto scams, how to spot them, and what to do if you are the victim. We’ll dive into some of the best scamming methods scammers use to steal crypto and effective recovery strategies like hiring recovery services. 


Ready? Let’s get into it!

a person in a hoodie using a laptop

Understanding Cryptocurrency and Cryptocurrency Scams

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on a peer-to-peer network without the need for a central authority. Cryptocurrency operates on a decentralized blockchain. Unfortunately, scammers exploit the anonymity and complexity of the crypto world to trick naive individuals. 


Cryptocurrency scams are fraudulent activities that involve the use of cryptocurrencies, such as Bitcoin, as a means to deceive victims into sending money or providing personal information.

Common Tactics Used to Steal Your Crypto


Here are some of the best scamming methods used by scammers to steal your crypto:


  • Cryptojacking: Unauthorized access to your device for mining, draining your computing power.


  • Info Stealers: Malware captures passwords or private keys, facilitating cryptocurrency theft.


  • Social Engineering Schemes: Impersonating trusted entities to extract sensitive information or funds.


  • Crypto Exchange Hacks: Targeting digital wallets, exchanges, and platforms to steal private keys or passwords.


  • Fake Cryptocurrency: Scammers create fake cryptocurrency trading platforms, exploiting investors who trust these deceptive setups.


  • Pump and Dump Schemes: Artificially inflating coin values, then selling for profit, leaving investors with losses.


  • Social Media Giveaway Scams: Fraudulent promotions entice victims to click on links leading to fake websites.

Romance Scams: Building romantic relationships to deceive victims into making cryptocurrency payments or investments.

How to identify fake cryptocurrency?


Scams involving fake cryptocurrencies are gaining traction these days. If you’re stepping foot into the world of crypto trading, you must know how to identify fake crypto currency scam. 


A detailed and well-written white paper is a hallmark of a legitimate cryptocurrency project. Examine the white paper for technical depth, a clear problem-solving approach, and a well-defined use case. Fake cryptocurrencies don’t produce thoroughly written and researched white papers. The fakes are poorly written, with figures that don’t add up, and they don’t explain how they envision the money raised being used.

How would you know if you’ve been scammed online? Read the section below to find out!

a person wearing a mask holding two coins

How to know if you’ve been scammed online


The first step in protecting yourself is recognizing the signs of a crypto scam. If you’ve fallen victim, immediate action is a no-brainer. Common indicators include unexpected losses, suspicious transactions, or communication from unknown sources. If you suspect foul play, consider how to track a scammer through a phone number, investigate online scam recovery strategies, and verify the legitimacy of your investments.


Recovery Strategies in the USA


If you’ve been scammed online, especially in the realm of cryptocurrency, recovery can be challenging. However, several steps can enhance your chances of retrieving lost funds. Seek assistance from crypto scam recovery services in the USA, report the incident to law enforcement, and contact your bank or credit card company. Document all communication with the scammer and gather evidence for a stronger case.


You can find legitimate scam recovery services like Costner Recovery in the UK, which can help you recover your stolen crypto funds. Always conduct a thorough whenever it comes to money!

How to report crypto scams

Stumbled upon a crypto scam or maybe you’re knee-deep in one already? Well, don’t just sit there! Promptly report the scam. Check out the contacts below as they’ll help you track down the scammers who scammed you online:

  • Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint.

  • Federal Bureau of Investigation (FBI) at https://www.fbi.gov/contact-us.

  • Federal Trade Commission (FTC) at ReportFraud.ftc.gov.

  • Internet Crime Complaint Center (IC3) at ic3.gov/Home/FileComplaint.

  • U.S. Securities and Exchange Commission (SEC) at sec.gov/tcr.




Cryptocurrency scams are an unfortunate reality today. It is we who need to keep ourselves updated about the common tactics scammers use and know how to protect ourselves in the event of a scam! 


Always stay vigilant, conduct thorough research, and beware of unknown entities online. Your awareness can help you provide a safe and secure investment experience. Also, if you or someone you know has been the victim of a crypto scam lately, take immediate action and partner with the crypto scam recovery services in the USA!


Confidently tackle scams with Costner recovery! Our dedicated team with 15+ years of experience has your back! From cryptocurrency to forex scams, Costner recovery is your shield against financial fraud. Each case gets the time and respect it deserves because your financial peace matters to us!

Leave a comment

Your email address will not be published. Required fields are marked *