Common scams in cryptocurrency

Published on Dec 11, 2023Updated on Jun 3, 20243 min read3

In recent years, the number of cryptocurrency scams grow rapidly in the crypto world, and the ways of scammers defrauding cryptocurrency investors have evolved tremendously over time.

We have sorted out the most common fraud types that occurred frequently:

1. Fake promotional activities on social media

With this type of fraud, usually starts with users receiving some sort of announcement via various social media channels (e.g. Telegram, WeChat, etc.) that promote a sale. The promotional activity often requests users to transfer ETH to a wallet to receive a higher amount of OKB in return. Once users transfer the ETH to the scammers' wallets, users lose all their assets and will not receive anything in return. Users should always be aware that the transaction cannot be reverted after withdrawals were made.

2. Smishing (Spam Text Messaging)

Smishing is a very typical fraud nowadays. Scammers will impersonate a person/official OKX TR/ Gov authorities and send spam text messages to you that attempt to get you to click a link so as to collect your personal data. The SMS may contain, for example, "Follow the link to complete the compliance procedures to avoid your account being frozen. (non-OKX TR domain).com". Information you provided at the fake official website will be recorded by the scammers, hence they can easily log in to your account and withdraw your assets.

When you are in doubt about your account, please reach out to our customer support.

3. Malicious software

When installing a software, you should always ensure the authenticity of the applications. Malicious applications might seem very leigitimate because they look very similar to the official one. These apps are designed to steal your account and asset.

To prevent this, It is recommended to always download the application from official website, and also check the provider's information when downloading from Apple Store or Google Play Store.

4. Buying and Selling personal information

Buying and selling KYC (Know Your Customer) information or accounts can pose significant risk to both the buyers and sellers involved. Sensitive information such as governmental IDs and passports can be exploited for malicious activities and eventually leads to severe legal consequences, including fines and imprisonment. Most times, you will be exposed to criminal liability or becoming victims of identity theft.

It is essential to prioritize the protection of your account and personal information while strictly adhering to the legal and ethics guidelines when using OKX TR.

5. Web 3 hack (Sweeper bots)

The blockchain stores all the data of the network, such as the balance, incoming or outgoing transactions, transaction fees, transaction amounts, and the nodes that validate transactions. A sweeper bot is a script used to monitor the transaction pool that stores pending transactions perform automated outgoing transactions.

Once sweeper bot identifies a transaction related to a compromised wallet, they will front-run a new transaction before the original transaction is completed to transfer out the assets. If your assets disappear after you complete the transfer, your wallet is very likely being attacked by sweeper bot.

To prevent sweeper bots hacking, please do not share wallet seed phrases with anyone, do not buy any wallet online and do not import any wallet with the seed phrases provided by others or on social media.