Scam websites: how to spot them?

By Hanscrypto4 | Hanscryptoblog | 31 Mar 2022

My experience is that next to good crypto projects there are still many scam projects coming and going. The fortunate thing is that anyone can avoid being scammed if you know what to look for and any tips if you per se want to try out those risky websites.It is always recommended to invest with money you can afford to lose. Always do your research before you invest. First I will sum up the symptoms of dealing with a scam platform.

1. Lies about establishment date

Scam site often show statemens that they have a long track record but when you check on the website itself, it shows that website is only around for mostly a few months. This is a clear sign that website is not legitimate.

2. Team is invisible

Another well known sign of an illegitimate platform is lack of transparancy who runs it. If you cannot find any clear information about who runs the project or the information is inconsistent it is a clear indication the website is bogus. Another possibility is that a team is shown but the profiles are fake.

3. Agressive marketing team

Sometimes you are approached on social media or even on call to invest in their platform. They promise really good results and they urge you to invest. If you say no the caller gets really hasty to try to get you to invest. A legitimate regulated platform never forces you to invest.

4. Pay first few times only

In order to get people to invest and attract more people to invest they often pay a few fimes first. This way investors get the feeling that the platform is real and then greed kicks in and they invest big. After the first few times suddenly the investor finds out that their withdrawal is blocked.

5. Unrealistic yields

Another sign a website is a scam when they promise extremely high returns. Sometimes 10000% in a few days. This is a clear sign a Ponzi scheme is being set up and yields only can come from new investors. As soon as the money starts to dwindle and no new investors come in withdrawals are closed and wedsite goes offline. If a projects offers high yields with no clear plan nor product it is a scam.

6. Sudden unjustified excuse of halting withdrawal

When a website stops withdrawal without a clear justification it is a clear sign an exit scam is the next move. A legitimate website communicates clearly why withdrawals are halted and when they resume. Often a scam website claim that website got hacked or that a decentralized withdrawal system is implemented. Also they are unclear about when withdrawals resume

7. Bogus support

Another symptom of a scam website is when support is bogus. The scam websites often run a fake support team with pictures stolen online and avoid answering questions. Scam websites don’t have a clear plan so don’t expect anything from support that will help you. Also support often blocks you out when withdrawals are not succeeding.

8. Sudden changes on website

Another sign of an exit scam in the making is when suddenly the liquity pool is empty, disappearance from any social media and support suddenly offline. If people invest after these warning signs it’s clear that this money is lost. 

9. Bogus investment groups on social media

Almost anyone who is active on social media have faced some investment groups where they show off with big filled crypto wallets making claims like: “I invested $1000 in this project and they helped me so good I earned  $100000 today. It sounds good but when you check out the group you see soon that the people who benefitted are part of the group who run this scheme. It is always a scam and they only get rich duping all investors who were lured in. It is always investor beware and if it sounds too good to be true it is

10 No KYC procedure

Unregulated platforms show often that no Know your client procedure is required to invest. It is a clear sign platform is unregulated and that you cannot report anyone in case you get scammed. Avoid investing in any unregulated platform because it is always a scam

11. Pay upfront to withdrawal

Another sign of scam is when you have to pay a transaction fee in order to proceed with withdrawal. Normally transaction fees will be deducted from the amount you want to withdraw. Best is to avoid paying anything because you will lose the fee and never get the funds.

12.Fake transaction history

Often scam websites show all transaction traffic through their website, but those transactions are fake. It is only the same trasactions being shown and the sole purpose is to give investors the impression transactions are proceding and that website is paying. Often transaction history is only static.

13. Bogus crypto mining websites

Another scam is the free crypto mining scam. After signing up with your wallet adress you get a free has rate that’s often very low. They offer higher subscriptions where you have to pay a big amount. Often you pay more than you earn back. And when you earn enough crypto with the free and apply for withdrawal you need to pay for one of the subscriptions. Best is to avoid any subscriptions.

14. High multi level marketing bonus

Almost every website has a referral program but scams often offer high multi level bonuses. This is the case so that influences attract new investors so the scheme can run longer. 8% bonus for each person who is using your code is too good to be true.

15. Fake positive reviews

Scam website ofter give out bonuses for a positive review. So while the project runs it gets 5 stars. When the exit scam is being proceeded the real reviews come in which are always negative. 

16.  Fake smart contracts

The final symptom to look out for is the interaction with fake smart contracts. Critically evaluate the smart contract and underlying project before making an interaction with a smart contract. There can be loopholes in it and you can lose your sent funds.

As shown above are several ways crypto scams can occur. If someone really wants to invest it’s best to invest with small amounts. It is not recommended but everyone has their own rensponsibility before investing

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