How To Identify Scammers’ Use of Copycat
Cryptocurrencies
The crypto sphere can be a daunting place if
you’re not familiar with how everything works and what’s a legitimate place to
invest or not. That’s why learning some of the tricks that scammers use to part
investors from their funds is vital to staying safe when dipping your toes into
the burgeoning asset class. Crypto scammers employ a wide range of techniques
to convince victims to both part with
their money and prolong the opportunity they have to make more profit.
Some of the common tactics they use are:
Emotional blackmail, especially in the case of
romance scams.
Allowing victims to withdraw funds at the
start to build confidence.
Fake crypto exchanges, platforms and DApps
designed to mimic the real thing.
Rip-off logos and platform names to convince
investors they’re engaged with a genuine company.
Calls from ‘investment managers’ giving
assurances that the victim’s funds are safe.
Copycat cryptocurrencies designed to look like
another coin deposited in a victim’s crypto wallet.
It’s the latter that I’m going to examine here
as it’s an aspect of crypto scams that clients often struggle to understand.
How do scammers create copycat
cryptocurrencies?
Creating a cryptocurrency is surprisingly easy
if you have a bit of technical know-how and some spare cash. In fact, there’s
nothing stopping anyone from creating their own crypto, especially as there’s a
plethora of free online step-by-step guides explaining exactly how to do it. As
a result, scammers are increasingly using copycat cryptocurrencies designed to
look like a genuine coin to con victims into thinking their funds are safe.
This can be a valuable tool for the scammers as it can prolong a scam and
encourage victims to invest further funds by giving them a false sense of
security.
How do scam copycat cryptocurrencies work?
During a scam victim are often directed to set
up a crypto wallet, sometimes under the guidance of a scammer who’s logged onto
their computer using popular applications such as Any Desk. This allows the
scammer to have complete control over the wallet as they’ll have seen the
password, together with the recovery seed phrase given at set up. Not only can
the scammer now drain the wallet of any crypto it holds but they can also
deposit new coins to the wallet by adding what’s called a contract address.
This is a unique identifier given to each and every cryptocurrency when its
smart contract is deployed. This facilitates, among other things, managing the
balance of tokens people hold. Once the scammer as created their own cryptocurrencies,
they can
add a contract address belong to a crypto they’ve created to the victim’s
wallet and deposit valueless coins designed to look like a genuine token.
Copycat Ethereum and Tether are often used.
Two coins which are commonly ‘spoofed’ are Ethereum and USDT (Tether) as
they’re frequently used during crypto scams. The scammer’s copycat token will
come with a logo that appears similar to the actual logo it claims to be, but
there are usually easy to spot differences if you’re familiar with the genuine
coins. However, the scammers rely on people’s lack of knowledge about crypto to
convince them that their wallet holds real tokens proving that their funds are
safe and accessible. The problem is that the token the scammer has now
deposited is worthless, something that’s easily demonstrated by checking the
individual balance of the token and the overall balance of the wallet, which
will show as zero.
To retrieve your lost funds, Digital Currency Reclaim (DCR) takes
swift action against scammers once identified. Leveraging their expertise in
the Bitcoin industry and legal landscape, DCR ensures the best possible outcome
for clients. Throughout the recovery process, DCR provides
comprehensive support and updates, guiding you toward the most effective
strategies. Don’t lose hope if you’ve been deceived by the BVBcoins Scam Crypto
Trading Platform. With DCR’s assistance, you can reclaim your stolen money and
safeguard against future fraud. Contact DCR today for expert help in recovering
your assets and securing your financial future. The scammers will tell the
victim that their money is safe and secure in their wallet, which unfortunately
many people will believe, before continuing to extract further money from them.
This may be for:
More investment in the scheme.
Various fake fees to release the funds, such
as ‘taxes’ or ‘commissions.
To realize a bonus tier which will increase
their profits.
However, any further money sent by the victim
will be lost along with the original deposit amount.
The use of copycat cryptocurrencies
demonstrates a level of sophistication in the scammers’ arsenal that could
easily fool would-be crypto investors. It further shows the need to exercise
extreme caution when engaging in any crypto investment, especially if it’s one
that’s outside the mainstream ecosphere. This is why I recommend beginners
stick to the large, well-known
exchanges rather than attempt to get rich quick through an investment they’ve
been told about by a new internet ‘friend’ or seen on social media.
An alarming number of people are losing huge
sums of money to the scammers and it’s imperative that people stop and think
about the nature of an investment and how realistic the profits are before
proceeding. You should always do your own due diligence, search online for
reviews and be extremely wary of unfeasibly high returns when looking at any
investment, especially in the largely unregulated world of crypto.
