Jul 15, 2021
Crypto scams are everywhere — even in places that have nothing to do with crypto. From fake accounts slinging meme coins to dusting attacks and phishing emails, Alex & Jacki have seen (and suffered!) most of it. Join them as they disclose the most common culprits.
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0:15 - Today we are going to talk about the underbelly of the cryptocurrency market: scams.
0:30 - The scam Alex received that inspired this episode.
0:50 - “Cleveland Bank” had multiple PDFs about their business, a website, a phone number—but they were requesting cryptocurrency that’s the first red flag.
1:10 - Anyone in crypto on social media is receiving spam/scam emails on the daily. You must vet before you invest!
1:49 - Red flags: no CEOs or pictures of the members that run the bank.
2:00 - Ransomware has increased over 300%, from January of 19, to January of this year.
2:22 - Ransomware in the Colonial Pipeline in May of this year shut down a system and requested Bitcoin in return.
2:40 - Chain Analysis reports that illicit activity only made up 0.34% of all cryptocurrency transaction per volume in 2020, which is actually a reduction from ~2% in 2019.
3:03 - the majority of transactions on the blockchain are public, although there are private blockchains like Monero, the majority are public.
3:15 - The transactions that happen on Bitcoin and Ethereum are public. Anyone with a mobile phone internet connection can view the transactions happening in real time, which is how the Justice Department for the Colonial Pipeline hack was able to track and see the wallets the illegal transactions went to.
4:45 - We do welcome regulation for illicit activity but are careful to avoid stifling innovation and creativity.
5:00 - Dusting attacks: scammers basically sprinkle cryptocurrency wallets with a tiny bit of money in the hopes of unmasking or de-anonymizing.
5:28 - if you see a small amount of cryptocurrency randomly enter your wallet, generally, that's a phishing scam or could lead to potential cyber extortion.
5:57 - The act of “dusting” is used by marketers, too, who attach a message to the dusted crypto — very comparable to an email blast.
6:43 - Another scam is receiving a random cryptocurrency that requires signing up for another exchange in order to sell the crypto (basically just getting your info on an exchange that doesn’t even exist). Pro-tip: check out Coin Market Cap and see if there was any liquidity and what financial backing the coin has.
9:37 - There's almost 11,000 projects at the moment. Many do the same thing and lack a unique use case and/or utility. Some are just outright scams.
9:50 - Venture Capital firms and individuals receive pro
10:35 - Programmers asking people for “x” amount per month and they’ll tell you how to pump & dump. High caution for those who believe in “get rick quick” crypto schemes.
11:18 - The people who got in early make out and the majority of investors are the bag holders of cryptocurrencies that are worth nothing,
11:30 - Dogecoin, whales & market manipulation.
11:50 - A rampant problem in crypto right now is cat-fishing — people creating fake accounts of real people and messaging their friend’s list with crypto scams.
12:50 - My Crypto Advisor NEVER reaches out requesting cryptocurrency or pumping projects.
13:25 - We are here to help people truly understand the technology and become the best custodians on their crypto journey.
13:40 - We help ‘how to’ - from getting started to staking & navigating DeFi, investigating coins & projects for legitimacy or tracking down available exchanges.
15:30 - Reach out to us at mycryptoadvisor.com for a free 15-minute consultation to assess your goals and see if we can help!