Cryptocurrency Scams How to be safe?

I recently started investing, online trading so naturally, I have recently been contacted by scammers a lot. Each one coming with their own schemes, trying to trick me into sending them money. Cryptocurrency Scams are very common these days. Here are some key tips that help u differentiate scams from real income opportunities.

Get Rich quick is usually a scam

Usually, if someone is telling u, that you have won a lottery which never bought tickets for or coca-cola is giving u a cash prize, it is always a scam. Miracles like that don’t happen in this world. I vividly remember this is the most naive nature of scam and you can watch this perfect video to see how to have fun with that. So if someone asks u to send Crypto to get your prize it is 100% a Scam.

Cryptocurrency Scams on P2P networks

After the advent of cryptocurrency, scammers try to trick people in sending them crypto. As this is untraceable where it went. Though that is not true completely. However, scammers still believe it.

  1. If you are buying or selling cryptocurrency always make sure to use an escrow service like P2P crypto websites.
  2. Always make sure to verify the transaction via ur Bank Online payment and not by the email confirmation. Email confirmations can be faked. So always log in to your account and check if you have actually received the funds.
  3. Only release your escrow amount when u are satisfied that you have received the funds in your account.

That is why the state bank of Pakistan issued a warning as well for cryptocurrency scams. which actually doesn’t make cryptocurrencies illegal.

Crypto Wallet Scams

Another trick scammers do is to create a wallet for you and then storing its backup key. Then they will give all the details of the wallet to you and ask u to change your password etc. Then they will ask u to fund the wallet.  Once you fund the wallet the scammers will get the wallet from the backup phrase they saved and shift it to another service.  A bunch of guys tried to scam me this way using a blockchain wallet. I was aware of the scam so actually I never sent them money and wasted their 8 to 9 hours by talking to them about random topics and giving them hope that I will follow the instructions if they do certain funny tasks.

Cryptocurrency Scams

ICO Crypto Token Scams

This is the most sophisticated scams which mix the real start-up opportunities with fraudulent misleading tokens. Let me first tell u what is a token. Ethereum blockchain allows any company to create its own cryptocurrency which acts like shares of the company. It is called a token.

So what people do is to make a website and create hype around a groundbreaking idea. While in reality, they have no work going on the project or they are not serious about it. Once a lot of people buy the Tokens with Etherum or bitcoins, they usually leave the project and investors lose all their money.

So be careful when investing in a start-up and try to get as much information about it as possible. Also keep in mind that 90% of Start ups fail regardless of their intent.

What to do if you get scammed?

Just in case if you get scammed of your crypto assets, you will be trying to figure out how you can get help. Here are some ways you can get help.

Contact your National Cyber crime unit

The first thing you should do is to file a report in your cyber crime online portal. This is usually a free process and will not incur any legal costs.

Trace your Crypto

Try to trace where your funds have gone. Etherscan and Blockchain explorer are really good tools for ETH and BTC. Try to find if your funds went to any exchange. Contact that exchange with the address. Usually exchanges will help you and may also freeze the account of scammer.

Meanwhile you can get cyber crime unit to contact exchange to get your funds back.

Reclaim Crypto

If you become victim of a false ICO or a security breach then your best bet is to contact this company.  They help solve such cases and may be able to get your funds back. Though they will charge a share of your funds, once your funds are recovered.


In Summary I will cryptocurrency is a great new area to explore trading, do  online transactions, a way to solve debt problems. However one has to be careful while dealing with crypto. There are a lot of scammers and help forums are still in early phase. this shouldn’t scare you away from crypto however you should exercise caution.

Disclaimer: This is not financial advice. Please invest responsibility and be safe while doing transactions.

Dr Waqar Akram
Latest posts by Dr Waqar Akram (see all)
1 reply
  1. Kumar
    Kumar says:

    I completely agree with you. Staying safe is very important while trading cryptocurrencies. I have also been contacted by scammers a few times however I was vigilant so didn’t get scammed.


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