Cryptocurrency scams are deeply deceptive | Recognize 6 major scam techniques to protect your wallet

The virtual currency market is booming, but scam groups are also actively following the trend. They impersonate trading platforms, forge projects, and pose as customer service representatives, targeting newcomers who are unfamiliar with virtual currencies. Their scams are diverse, and every year many investors fall victim. To thrive in this market, you must first learn to recognize these common tricks.

What are the 6 main scams in virtual currency?

Trap 1: Fake Exchange Traps

The most common scam is fake exchanges. Scam groups create counterfeit platforms that look exactly like legitimate exchanges, making it impossible to tell real from fake. You can transfer funds in, but once you want to withdraw, they start demanding various fees—transaction fees, deposits, taxes, and more. Some even set absurd conditions, such as requiring a trading volume of $10,000 before allowing withdrawals, or threaten you by claiming they have already covered your margin and will come to collect if you don’t pay back.

These groups usually first contact you via social media or dating apps, building trust and pretending to be friends, then recommend “money-making opportunities” through fake web pages or phishing links. They also imitate the URLs and app appearances of well-known exchanges, making it hard to distinguish. Genuine platforms are easy to find on Google, while fake exchanges are usually unsearchable.

Trap 2: Ponzi Schemes and ICO Scams

The so-called ICO(Initial Coin Offering) scam involves scammers claiming that a new virtual currency is highly profitable and that participating in the subscription will earn big profits. They first establish trust through LINE, Facebook groups, dating apps, or seminars, creating a friendly image, then use unrealistically high returns to persuade you. More ruthlessly, they assign different roles as uplines and downlines, encouraging you to invest and recruit friends and family to join, earning high commissions. Essentially, this pattern is just using your money to fill the holes of the people above.

Trap 3: Impersonating Platform Customer Service to Steal Data

You might receive contact from someone claiming to be an exchange staff member, saying your account has been frozen due to violations or unauthorized activity, and asking you to transfer funds to a specified address for “unfreezing.” This is similar to bank scams—using “installment解除” or “account error” as pretexts to trick you into ATM transactions. Remember, legitimate exchange staff will never proactively ask customers for verification or transfers.

Trap 4: OTC(Over-the-Counter) Scams

OTC is a decentralized trading method with no official or third-party regulation. Scammers exploit this by posting fake buy/sell info on social media, Facebook, LINE groups, or forums, claiming lower prices or advantages. Once you transfer funds or send virtual currency, they disappear—either refusing to pay or not sending the coins. Since these are private transactions, you cannot trace the other party’s identity or seek legal rights.

Trap 5: False Investment Promises

The market is flooded with tempting promises like “principal guaranteed and profit guaranteed” or “monthly income of 10%,” claiming a little-known virtual currency will soon skyrocket. These are classic scam tactics. They target inexperienced newcomers with dreams of easy money, making them abandon rational judgment.

Trap 6: “Experts” in Social Groups

Seemingly lively investment communities often hide scams. Scam groups create fake Q&A to give the illusion that many real investors are making money in the group. In reality, the entire community is operated by bot accounts controlled by them, with only one goal—tricking you into investing money.

How to identify and avoid these scams?

Tip 1: Use only reputable, official platforms

Choose large-scale, well-established(at least 2-3 years), high-volume exchanges. These platforms are regulated, have quick transactions, and are easier to resolve issues with. Smaller or unknown exchanges carry much higher risks.

Tip 2: Stay away from all offline transactions

Facebook groups, LINE chats, links recommended by online friends are all risky. Never use unfamiliar account opening links, and don’t trust customer service that actively asks for verification data—these are signs of scams.

Tip 3: Only invest in coins you’ve heard of

Avoid unfamiliar cryptocurrencies. Especially ICO projects—80% are scams. Unless you learn to read white papers(white paper), beginners should steer clear. Most Ponzi schemes disguise themselves with unknown junk coins to scam money.

Tip 4: Be cautious of community information

Even large communities with tens of thousands of members can be infiltrated by scam groups. Large numbers don’t guarantee safety; scammers often use fake discussions to create a false sense of activity. Remember, genuine cryptocurrencies rarely rely on marketing; real projects speak for themselves through strength, not hype.

Tip 5: Do thorough research before investing

Understand the project’s features, the types of cryptocurrencies involved, trading mechanisms, account security, and your risk tolerance. Proper preparation is key to avoiding total loss.

Tip 6: If in doubt, call 165

If you’ve researched thoroughly but still feel unsure, immediately call the Ministry of the Interior Police Department’s anti-fraud hotline 165. Experienced staff will provide professional advice based on your situation.

What to do if you’ve been scammed?

If you’re unlucky enough to fall victim, timely action is crucial.

If you haven’t withdrawn the funds (Golden Rescue Period)

Once you realize you’ve been scammed, immediately call 165 for “Emergency Circle Deposit.” Police will freeze the scam account’s funds, preventing withdrawal or transfer. Then, go to the police station to report the case—this way, your transferred money can be frozen in the account. This is the last chance to rescue your funds.

If the money has already been withdrawn or transferred

If funds have already been moved, you need to pursue legal action against the scam members for compensation. But reality is harsh—if the police cannot trace the source, or if the scammers have already spent all the money and are broke, it’s nearly impossible to recover the stolen funds.

Documents needed for reporting

Organize chat records, platform URLs where funds were deposited, virtual currency addresses(including your own and the other party’s), all transaction and transfer records(both in TWD and cryptocurrencies). These are key evidence for recovering funds.

Can stolen virtual currencies really be recovered?

Honestly: very difficult. Virtual currencies are decentralized assets based on blockchain technology, not relying on any financial institutions, which makes them easy targets for scammers. Crypto assets can be quickly transferred overseas under weak regulation, and even industry insiders find it hard to track and freeze.

The only chance to turn things around is to call 165 immediately after being scammed to freeze the scam accounts. Otherwise, once the money flows overseas or is layered through multiple transfers, recovery becomes impossible.

Final reminder: Prevention is always better than cure. In an era of endless virtual currency scams, caution and vigilance are the best protections.