Scammers are good in manipulating investor’s emotions while also creating a sense of urgency and a false feeling of security. Whether these scammers are trying to sell you a scam ICO, or making you believe you are talking to an authentic crypto exchange tech support, their goal is the same: they want to part with your money without them having to steal it, they make you give it to them willingly. Below are warnings signs of a fake ICO or crypto exchange support you should watch out for.
Hidden token sale
An authentic and successful ICO always show the progress of their sale. It is a feather on their cap as well as an effective and no-cost marketing tool whenever they display their token sale. Consider it a red flag if an ICO hides the progress of their token sale and everyone is kept in the dark on the specific amount raised.
Whenever a scam ICO is launched, scammers set up fake profiles as well as LinkedIn bios. You can check if these are scams by looking at the profiles very carefully. Are the pictures authentic? Some images used in fake profiles are generic images stolen from photo-sharing sites. Some even go to the extent of placing the picture of a popular Hollywood actor.
The most recent ICO scam was the Denaro ICO where profiles of its creators showed lack of experience in blockchain technology other than “actively following and researching” it online. Similarly, when Denaro folded, another ICO – Plutocoin – was launched wherein the profiles of its creators had the same descriptions as Denaro’s, only names were changed.
Fake tech support hotline
Scammers also pretend to offer technical support for cryptocurrency exchanges. Their strategy is to ask for access to the virtual wallets of their intended victims. After which, they then transfer or remove these digital currencies from the wallets. Scammers tell their victims that the site is undergoing maintenance thus cryptocurrencies need to be moved. However, once they gain access to the wallets, the scammers are never heard from again.