The emergence of a new cryptocurrency often leads to a surge in scams. This is particularly true when a new token is launching at the same time as Bitcoin is soaring. As a result, investors are apprehensive about missing out on the crypto boom, which is why they turn to a trusted source. However, this is not always the case. Here are some of the most common scams affecting Ethereum.

The first type of Ethereum scam occurs when an individual sends money to an unknown address. The scammer impersonates a support representative and searches for questions on public channels. Then, he sends private messages offering help, in an attempt to gain trust. In some cases, the funds may end up in a different wallet than the one intended. Often, these scams are untraceable, and can be avoided by following these tips.

The second type of cryptocurrency scam is the giveaway scam. A giveaway is when the scammer uses an impersonation of a support representative to steal funds from victims. They usually conduct a public search for the type of question the victim is looking for and send them private messages offering help. The fake support representative will try to build trust by presenting an attractive offer. As with the previous scam, it’s important to verify the legitimacy of the website or the person giving away the money.