🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 181 (from laksa041)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa181.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.businessinsider.com/personal-finance/investing/crypto-scams\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.businessinsider.com/personal-finance/investing/crypto-scams\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams","crawl_time":1776031907,"first_indexed_time":1721498217,"http_code":200,"src_unparsed":"com,businessinsider!www,\/personal-finance\/investing\/crypto-scams s443","src_root_hash":"15170859634011428381","history_drop_reason":null,"meta_title":"Crypto Scams: How to Identify and Avoid Them","meta_descriptions":["Cryptocurrency scams are on the rise. Learn how to recognize common crypto scams, protect your investments, and avoid falling victim to fraud."],"attrs_boilerpipe_text":"Updated\n2024-12-06T21:17:49.868Z\nCryptocurrency is less regulated than other assets, which can lead to scams, fraud, and financial ruin.\nThere are various forms of crypto market manipulation, including pump-and-dump schemes and rug pulls.\nYou can avoid several common crypto scams by performing due diligence before trading.\nA\ncryptocurrency\nis a digital token that can be exchanged for goods and services. However, many retail investors and institutions treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date. \nAs with any asset, investors must be careful before dabbling in crypto. Crypto investments are prone to scams, in part because they are new and generate a lot of buzz that can rope people into schemes that they should, in reality, avoid. \nPlus, cryptocurrencies are\nspeculative\nby nature. They lack traditional fundamentals that investors can analyze and assign value to. As a result, cryptos tend to be\nvolatile\nassets — their prices can drastically fluctuate on any given day. That can make it hard to discern what's being manipulated unfairly and what's normal swings.\nCrypto markets are also less regulated in general, so it's easier for bad actors to maliciously influence prices and take advantage of unsuspecting investors. \nThat's not to say that all crypto investments are dangerous, but investors should be wary of the following common types of crypto scams before they\nstart investing in crypto\n. \nCommon types of crypto scams\nCrypto scams can take many forms, some of which also happen with assets like stocks, while some are more unique to crypto.\nNamely, crypto investors should watch out for scams such as:\nRug pulls\nA rug pull occurs when crypto developers abandon a project, such as a new cryptocurrency or\nnon-fungible token (NFT)\nbut keep the funds raised from investors. Bad actors can list a new token on a decentralized exchange, pair it with a legitimate cryptocurrency, and drum up interest on social media to lure in investors. Once enough money funnels into their token, the developers scratch the project and run with investor funds. \nThis scam plagues early investors who think they're getting early access to up-and-coming cryptos, when in reality they're scammed out of their money.\nTo avoid this, watch for warning signs like unrealistic\/overly grand promises, anonymity from developers, and a general lack of transparency.\nQuick tip:\nBy sticking to centralized\ncryptocurrency exchanges\n, which typically have stricter oversight and regulations, you have a better chance of avoiding illegitimate projects. \nPump-and-dump schemes\nA pump-and-dump scheme represents an individual or group's effort to\ninflate\nthe price of an asset so that they can sell their own holdings for a profit. \nIt starts with the \"pump.\" To convince people to buy in, crypto schemers spread false or misleading information about minimally traded coins through social media, forums, and online communities. These posts often contain embellished due diligence (or \"DD\") and promise an impending surge. They'll use emojis like rocket ships paired with moons and diamonds alongside outstretched hands, implying an investment is about to pop and that investors should buy and hold. \nThen comes the dump. As momentum swells, other investors cash in and drive the price up, while the schemers cash out and make a quick fortune. Once the market realizes the hype was fake, investors scurry to limit losses and the coin's price plummets.\nSpotting a pump-and-dump scheme boils down to credibility. If you use social media platforms like Reddit and Twitter to track crypto movements, look out for anonymous accounts with minimal posting history — or a track record of baseless pumping. These are potentially fraudsters. Also, consider if there are sudden, unexplained price spikes. And if the crypto has no apparent real-world value or utility, it could be a pump-and-dump scheme.\nOther market manipulation scams\nMarket manipulation is the deliberate attempt to artificially influence or interfere with asset prices. While pump and dump is perhaps the best-known type of market manipulation scam, there are several other illicit trading activities that fall under this umbrella term, including:\nSpoofing:\nThis creates an illusion of momentum by placing fake buy or sell orders, which are canceled before they're filled. Scammers frequently use dummy accounts and bots to place large trades, giving other investors the impression that demand is either increasing or decreasing. \nFront-running:\nThis is the practice of making trades based on knowledge of future transactions. For instance, miners or node operators can have insight into pending trades. They could then\nleverage\ntheir inside access to make profitable trades ahead of major price\nswings\n. \nChurning:\nThis is excessive trading by a broker in a client's crypto account to generate additional commissions. Asset management firms can receive fees for managing crypto holdings. Therefore, nefarious\nb\nr\nokers\ncould abuse a commission-based payment structure to profit off of unaware clients. On top of unwarranted fees, the impacted individuals could also incur unnecessary tax liabilities as a result of churning. \nSince cryptocurrency markets are still relatively new and less regulated, they're more vulnerable to market manipulation. However, there are ways crypto traders can avoid falling victim to these scams. \nFor starters, it's best to trade on larger, reputable exchanges that have established security policies and internal controls. Additionally, investors can safeguard against unlawful tactics in the crypto markets by thoroughly researching coins, brokers, and exchanges before making any financial decisions. For instance, legitimate cryptos and companies typically offer potential investors an abundance of learning materials on their websites.\nQuick tip:\nAlthough plenty of investors day trade crypto, market manipulation usually impacts short-term trading activity. So, you can help protect against spontaneous price jumps by adopting a long-term outlook, such as using a\nbuy-and-hold investing strategy\n.\nFake ICOs (initial coin offerings)\nAn initial coin offering (ICO) is the crypto equivalent of an\ninitial public offering\n(IPO) for a stock. Through an ICO, companies can raise money to fund a crypto development, such as a token, app, or relevant service. In exchange for pledging funds, the investor receives an issuance of newly minted coins. \nWhile IPOs are typically for well-established private businesses, companies that pursue ICOs aren't necessarily in the same position. They could be fledgling startups without any operating history whatsoever, which can make it difficult to differentiate between a real offering and a scam. Similar to rug pulls, ICO scams collect the funds of early investors only to abandon the project shortly after. \nAn easy way to recognize an ICO scam — or simply an unprepared management team — is to review the company's whitepaper. This document details the specifications behind the project, including strategy, goals, and market analysis. If the company doesn't provide a whitepaper, that's a red flag. Also, if the whitepaper is unrealistic or there's a general lack of vision for how the ICO will go and how the coin will be used, those are all warning signs.\nQuick tip:\nYou can perform a background check on the ICO's developers and management team. If the company's ownership is anonymous or has a minimal track record in the crypto space, that should also be a cause of concern.\nCyber scams\nCrypto markets have unique characteristics relative to other asset markets. However, investors are still susceptible to traditional scams, such as\naccount hacks and identity theft\n. \nTo trade crypto, investors need a\ncrypto wallet\n, which can be a digital or physical device. These wallets have keys — both public and private. The former is a public address that allows crypto to be deposited into the wallet, similar to how routing and bank account numbers enable direct deposits. The latter is like the password to an online banking platform. Whoever has access to that password can control the funds within the account. \nJust as you wouldn't share your credit card number with a stranger, keep your private keys somewhere safe. Fraudsters can use this information to hack accounts and withdraw funds — and they'll employ various tricks to get investors to reveal their private information. \nIn particular, be cautious of crypto phishing emails that may pose as a crypto exchange or wallet provider. The same goes for out-of-the-blue and unsolicited promotions from suspicious websites and imposter accounts on social media. Scammers often pretend to be celebrities or affiliates of major companies, promising guaranteed and immediate returns if you act quickly. \nLike with other types of cyber attacks, however, the goal of the fraudsters with cyber phishing scams or social media scams is to simply trick you into giving up sensitive information that they can use to drain your funds.\nSpotting phishing scams is tricky, because cybercriminals often go to great lengths to make them look real, like setting up websites that mimic real ones to get you to enter your keys for them to then take. So, look closely at information like the URL of any links, and watch for things like spelling mistakes in emails or an unexpected request for personal information. It's generally better to take your time and investigate even if you get an email that's urgently requiring you to take action.\nWith social media and other online scams, also watch for warning signs like getting unrealistic promises of returns or requests to send you crypto, which is really just a way to infiltrate your wallet. And in general, be wary of unsolicited messages.\nQuick tip:\nTo avoid accidentally falling for phishing emails, verify that the sender's email address is valid and\/or recognizable. Often, scammers use addresses with generic domains and random characters. But sometimes the difference is subtle, like with just one letter being off from a real domain name you trust.\nBusiness Insider's Featured Crypto Apps\nPublic Bond Account\nChevron icon\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\nChevron icon\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\nEditor's Rating\n4.3\/5\nA five pointed star\nA five pointed star\nA five pointed star\nA five pointed star\nA five pointed star\nHow to avoid crypto scams\nAvoiding crypto scams isn't always easy, but some best practices include the following:\nDo your research\nBefore buying any crypto, using an investing platform, or getting into an NFT project, be sure to do your due diligence. That can mean reading whitepapers, researching the project founders, and getting feedback from others in the crypto community.\nBe wary of unsolicited offers\nIf someone reaches out to you out of the blue, especially if they promise high returns or say they're going to give you free crypto, that's a red flag, and you should often ignore these unsolicited messages.\nDon't trust 'guaranteed' returns\nAll investment carries risk. Any crypto or DeFi project promising guaranteed returns or profits is likely a scam or at least misleading.\nSecure your wallet\nDo your research to find a reputable cryptocurrency wallet, and make sure you keep your private keys safe. That includes being very careful about who you share the keys with — generally, you shouldn't have to share with anyone, except in some rare occurrences like perhaps your spouse for estate planning purposes. Also, consider enabling two-factor authentication for added security for your wallet.\nVerify website URLs\nPhishing scams are often effective by imitating real websites, but perhaps the URL is slightly different. So, make sure you're on the right URL before entering private information, and be cautious about clicking any links via email or social media.\nBe cautious on social media\nIn addition to being careful about links you click on, don't take everything you see on social media at face value. Plenty of unscrupulous individuals give fake or misleading investment advice or offer scam giveaways.\nWhat to do if you've been scammed\nIf you've been scammed, it's not easy to remedy the situation, but there are still important steps you can take:\nReport to authorities\nIf you come across a scam, you can report it to the Federal Trade Commission at ReportFraud.ftc.gov. Also consider reporting a scam to the FBI's Internet Crime Complaint Center (IC3), or your local law enforcement agency. Doing so can help prevent the scam from affecting others while also potentially helping you recover some funds or perhaps make the scammers face legal consequences for their actions.\nContact your exchange or wallet provider\nWherever you made the transaction that ended up being a scam, try reporting it to the exchange and\/or your crypto wallet provider. This can similarly help prevent the scam from spreading and possibly lead to some recovery.\nSeek legal advice\nDepending on the size of the scam, consider consulting with a lawyer who specializes in cryptocurrency or financial fraud. They may be able to help you seek legal remediation.\nFAQs about crypto scams\nThere are services that offer support for recovering lost cryptocurrency, and it's possible actions like lawsuits and law enforcement could help. In general, though, there's no guarantee that you'll recover lost crypto.\nCrypto fraud prevention isn't always easy, but you can get a better sense of whether a project is legitimate by researching the founders, reading the whitepaper of an ICO, and asking other investors or advisors you trust.\nA crypto scam, whether a Bitcoin scam, Ethereum scam, NFT scam, or anything else, often raises red flags with unrealistic promises, a lack of transparency, and urgency or hype that's used to pressure people into investing or taking action that reveals sensitive information.\nCarter Kilmann is a financial copywriter, an editor, and the author of\nDue Diligence\n. He works with a variety of financial publications, digital marketing agencies, and B2B firms. In addition to Insider, you can find his content on The Points Guy, RateGenius, and Money Under 30.\nYou can connect with Carter on \nTwitter\n, \nLinkedIn\n, or reach him directly at\ncarterkilmann@gmail.com\n.\nRead more\nRead less\nJake Safane is a freelance writer specializing in finance and sustainability. He runs a corporate sustainability blog,\nCarbon Neutral Copy\n, and his work has appeared in publications such as The Economist, CBS MoneyWatch, and the Los Angeles Times.\nExperience\nJake has been working in financial journalism since 2011, covering areas such as banking and investing for both businesses and individuals. \nHis career has included a mix of in-house reporting jobs at B2B finance publications such as Global Custodian and FundFire, a role in sponsored research at The Economist, and freelance engagements with online publications, financial advisors, and fintech companies.\nHis interest in personal finance dates back to joining his middle school stock trading club, where he learned about markets by doing simulated trading. A high school field trip to the New York Fed further cemented his fascination with the financial system and how seemingly academic concepts can make a big difference in the average person's life.\nHis personal interest in the environment has also carried over into finance, such as by covering ESG and impact investing. He believes that one of the top ways to solve the climate crisis is by helping both businesses and individuals realize the long-term financial benefits that sustainability can bring.\nIn his personal life, he also enjoys playing tennis, going to the gym, and going to the beach with his family — though often just for walks along a paved path, because vacuuming sand trekked in by a toddler and dog really cuts into writing time.\nExpertise\nJake’s areas of personal finance expertise include:\nInvesting\nBanking\nFinancial Planning\nRetirement\nInsurance\nEducation\nJake is a graduate of Boston University, where he wrote for The Daily Free Press and had a show on the school's radio station.\nRead more\nRead less","attrs_markdown":"[Subscribe](https:\/\/www.businessinsider.com\/subscription)\n\n[Newsletters](https:\/\/www.businessinsider.com\/subscription\/newsletter)\n\nJump To Section\n\n[Common types of crypto 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scammed](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#what-to-do-if-you've-been-scammed)\n\n[FAQs](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#faqs-)\n\n[Business](https:\/\/www.businessinsider.com\/business)\n\n[Strategy](https:\/\/www.businessinsider.com\/strategy)\n\n[Economy](https:\/\/www.businessinsider.com\/economy)\n\n[Finance](https:\/\/www.businessinsider.com\/finance)\n\n[Retail](https:\/\/www.businessinsider.com\/retail)\n\n[Advertising](https:\/\/www.businessinsider.com\/advertising)\n\n[Careers](https:\/\/www.businessinsider.com\/careers)\n\n[Law](https:\/\/www.businessinsider.com\/law)\n\n[Media](https:\/\/www.businessinsider.com\/media)\n\n[Real Estate](https:\/\/www.businessinsider.com\/real-estate)\n\n[Small Business](https:\/\/www.businessinsider.com\/smallbusiness)\n\n[The Better Work Project](https:\/\/www.businessinsider.com\/sc\/introducing-the-better-work-project-hub)\n\n[Personal 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Österreich](https:\/\/www.businessinsider.de\/?IR=C)\n\n[España](https:\/\/businessinsider.es\/)\n\n[Japan](https:\/\/www.businessinsider.jp\/)\n\n[Polska](https:\/\/www.businessinsider.com.pl\/?IR=C)\n\n[TW 全球中文版](https:\/\/www.businessinsider.tw\/)\n\n[Get the app](https:\/\/www.businessinsider.com\/app \"Get the Business Insider app\")\n\n[Personal Finance](https:\/\/www.businessinsider.com\/personal-finance)\n\n[Investing](https:\/\/www.businessinsider.com\/personal-finance\/investing)\n\n[Cryptocurrency](https:\/\/www.businessinsider.com\/personal-finance\/cryptocurrency)\n# Crypto Scams: Don't Get Caught Off Guard\nWritten by   [Carter Kilmann](https:\/\/www.businessinsider.com\/author\/carter-kilmann)   and   [Jake Safane](https:\/\/www.businessinsider.com\/author\/jake-safane)  edited by [Sarah Silbert](https:\/\/www.businessinsider.com\/author\/sarah-silbert)\n\nPaid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our [advertiser disclosure with our list of partners](https:\/\/www.businessinsider.com\/personal-finance\/our-partners) for more details). However, our opinions are our own. See [how we rate investing products](https:\/\/www.businessinsider.com\/personal-finance\/investing\/investing-rating-methodology) to write unbiased product reviews.\n\n![Frustrated trader who fell for a crypto scam gripping his head while sitting in front of monitors showing stock charts.](https:\/\/i.insider.com\/61a79f2b0ed48c0019e53547?width=700)\n\nSince cryptocurrency markets are still relatively new and less regulated, they’re more vulnerable to market manipulation.  Victoria Gnatiuk\/Getty\n\n[Common types of crypto scams](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#common-types-of-crypto-scams)\n\n[How to avoid crypto scams](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#how-to-avoid-crypto-scams)\n\n[What to do if you've been scammed](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#what-to-do-if-you've-been-scammed)\n\n[FAQs](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#faqs-)\n\nUpdated\n\n2024-12-06T21:17:49.868Z\n\nShare\n\nCopy link\n\n[Email](<mailto:?subject=Crypto Scams: Don't Get Caught Off Guard&body=Crypto%20Scams%3A%20Don't%20Get%20Caught%20Off%20Guard%0D%0A%0D%0Ahttps%3A%2F%2Fwww.businessinsider.com%2Fpersonal-finance%2Finvesting%2Fcrypto-scams&> \"Email\")\n\nFacebook\n\nWhatsApp\n\nX\n\nLinkedIn\n\nBluesky\n\nThreads\n\nAn icon in the shape of a lightning bolt.\n\nImpact Link\n\nSave Saved\n\n[Read in app](https:\/\/insider-app.onelink.me\/4cpG\/?af_js_web=true&af_ss_ver=2_3_0&af_dp=insider%3A%2F%2Fbi%2Fpost%2Fpersonal-finance%2Finvesting%2Fcrypto-scams&af_force_deeplink=true&is_retargeting=true&deep_link_value=https%3A%2F%2Fwww.businessinsider.com%2Fpersonal-finance%2Finvesting%2Fcrypto-scams&pid=businessinsider&c=post_page_share_bar_v2_smart_4.13.23 \"Download the app\")\n\n- Cryptocurrency is less regulated than other assets, which can lead to scams, fraud, and financial ruin.\n- There are various forms of crypto market manipulation, including pump-and-dump schemes and rug pulls.\n- You can avoid several common crypto scams by performing due diligence before trading.\n\nA [cryptocurrency](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-cryptocurrency) is a digital token that can be exchanged for goods and services. However, many retail investors and institutions treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date.\n\nAs with any asset, investors must be careful before dabbling in crypto. Crypto investments are prone to scams, in part because they are new and generate a lot of buzz that can rope people into schemes that they should, in reality, avoid.\n\nPlus, cryptocurrencies are [speculative](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-are-penny-stocks) by nature. They lack traditional fundamentals that investors can analyze and assign value to. As a result, cryptos tend to be [volatile](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-volatility) assets — their prices can drastically fluctuate on any given day. That can make it hard to discern what's being manipulated unfairly and what's normal swings.\n\nCrypto markets are also less regulated in general, so it's easier for bad actors to maliciously influence prices and take advantage of unsuspecting investors.\n\nThat's not to say that all crypto investments are dangerous, but investors should be wary of the following common types of crypto scams before they [start investing in crypto](https:\/\/www.businessinsider.com\/personal-finance\/investing\/how-to-buy-cryptocurrency).\n\n## Common types of crypto scams\nCrypto scams can take many forms, some of which also happen with assets like stocks, while some are more unique to crypto.\n\nNamely, crypto investors should watch out for scams such as:\n\n### Rug pulls\nA rug pull occurs when crypto developers abandon a project, such as a new cryptocurrency or [non-fungible token (NFT)](https:\/\/www.businessinsider.com\/personal-finance\/investing\/nft-meaning) but keep the funds raised from investors. Bad actors can list a new token on a decentralized exchange, pair it with a legitimate cryptocurrency, and drum up interest on social media to lure in investors. Once enough money funnels into their token, the developers scratch the project and run with investor funds.\n\nThis scam plagues early investors who think they're getting early access to up-and-coming cryptos, when in reality they're scammed out of their money.\n\nTo avoid this, watch for warning signs like unrealistic\/overly grand promises, anonymity from developers, and a general lack of transparency.\n\n**Quick tip:** By sticking to centralized [cryptocurrency exchanges](https:\/\/www.businessinsider.com\/personal-finance\/investing\/best-crypto-bitcoin-exchanges), which typically have stricter oversight and regulations, you have a better chance of avoiding illegitimate projects.\n\n### Pump-and-dump schemes\nA pump-and-dump scheme represents an individual or group's effort to [inflate](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-inflation) the price of an asset so that they can sell their own holdings for a profit.\n\nIt starts with the \"pump.\" To convince people to buy in, crypto schemers spread false or misleading information about minimally traded coins through social media, forums, and online communities. These posts often contain embellished due diligence (or \"DD\") and promise an impending surge. They'll use emojis like rocket ships paired with moons and diamonds alongside outstretched hands, implying an investment is about to pop and that investors should buy and hold.\n\nThen comes the dump. As momentum swells, other investors cash in and drive the price up, while the schemers cash out and make a quick fortune. Once the market realizes the hype was fake, investors scurry to limit losses and the coin's price plummets.\n\nSpotting a pump-and-dump scheme boils down to credibility. If you use social media platforms like Reddit and Twitter to track crypto movements, look out for anonymous accounts with minimal posting history — or a track record of baseless pumping. These are potentially fraudsters. Also, consider if there are sudden, unexplained price spikes. And if the crypto has no apparent real-world value or utility, it could be a pump-and-dump scheme.\n\n### Other market manipulation scams\nMarket manipulation is the deliberate attempt to artificially influence or interfere with asset prices. While pump and dump is perhaps the best-known type of market manipulation scam, there are several other illicit trading activities that fall under this umbrella term, including:\n\n- **Spoofing:** This creates an illusion of momentum by placing fake buy or sell orders, which are canceled before they're filled. Scammers frequently use dummy accounts and bots to place large trades, giving other investors the impression that demand is either increasing or decreasing.\n- **Front-running:** This is the practice of making trades based on knowledge of future transactions. For instance, miners or node operators can have insight into pending trades. They could then [leverage](https:\/\/www.businessinsider.com\/personal-finance\/investing\/leverage) their inside access to make profitable trades ahead of major price [swings](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-swing-trading).\n- **Churning:** This is excessive trading by a broker in a client's crypto account to generate additional commissions. Asset management firms can receive fees for managing crypto holdings. Therefore, nefarious [b](https:\/\/www.businessinsider.com\/personal-finance\/investing\/stock-trading)r[okers](https:\/\/www.businessinsider.com\/personal-finance\/investing\/stock-trading) could abuse a commission-based payment structure to profit off of unaware clients. On top of unwarranted fees, the impacted individuals could also incur unnecessary tax liabilities as a result of churning.\n\nSince cryptocurrency markets are still relatively new and less regulated, they're more vulnerable to market manipulation. However, there are ways crypto traders can avoid falling victim to these scams.\n\nFor starters, it's best to trade on larger, reputable exchanges that have established security policies and internal controls. Additionally, investors can safeguard against unlawful tactics in the crypto markets by thoroughly researching coins, brokers, and exchanges before making any financial decisions. For instance, legitimate cryptos and companies typically offer potential investors an abundance of learning materials on their websites.\n\n**Quick tip:** Although plenty of investors day trade crypto, market manipulation usually impacts short-term trading activity. So, you can help protect against spontaneous price jumps by adopting a long-term outlook, such as using a [buy-and-hold investing strategy](https:\/\/www.businessinsider.com\/personal-finance\/investing\/how-to-buy-stock).\n\n### Fake ICOs (initial coin offerings)\nAn initial coin offering (ICO) is the crypto equivalent of an [initial public offering](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-ipo) (IPO) for a stock. Through an ICO, companies can raise money to fund a crypto development, such as a token, app, or relevant service. In exchange for pledging funds, the investor receives an issuance of newly minted coins.\n\nWhile IPOs are typically for well-established private businesses, companies that pursue ICOs aren't necessarily in the same position. They could be fledgling startups without any operating history whatsoever, which can make it difficult to differentiate between a real offering and a scam. Similar to rug pulls, ICO scams collect the funds of early investors only to abandon the project shortly after.\n\nAn easy way to recognize an ICO scam — or simply an unprepared management team — is to review the company's whitepaper. This document details the specifications behind the project, including strategy, goals, and market analysis. If the company doesn't provide a whitepaper, that's a red flag. Also, if the whitepaper is unrealistic or there's a general lack of vision for how the ICO will go and how the coin will be used, those are all warning signs.\n\n**Quick tip:** You can perform a background check on the ICO's developers and management team. If the company's ownership is anonymous or has a minimal track record in the crypto space, that should also be a cause of concern.\n\n### Cyber scams\nCrypto markets have unique characteristics relative to other asset markets. However, investors are still susceptible to traditional scams, such as [account hacks and identity theft](https:\/\/www.businessinsider.com\/personal-finance\/credit-score\/best-identity-theft-protection-services).\n\nTo trade crypto, investors need a [crypto wallet](https:\/\/www.businessinsider.com\/personal-finance\/investing\/best-bitcoin-wallet), which can be a digital or physical device. These wallets have keys — both public and private. The former is a public address that allows crypto to be deposited into the wallet, similar to how routing and bank account numbers enable direct deposits. The latter is like the password to an online banking platform. Whoever has access to that password can control the funds within the account.\n\nJust as you wouldn't share your credit card number with a stranger, keep your private keys somewhere safe. Fraudsters can use this information to hack accounts and withdraw funds — and they'll employ various tricks to get investors to reveal their private information.\n\nIn particular, be cautious of crypto phishing emails that may pose as a crypto exchange or wallet provider. The same goes for out-of-the-blue and unsolicited promotions from suspicious websites and imposter accounts on social media. Scammers often pretend to be celebrities or affiliates of major companies, promising guaranteed and immediate returns if you act quickly.\n\nLike with other types of cyber attacks, however, the goal of the fraudsters with cyber phishing scams or social media scams is to simply trick you into giving up sensitive information that they can use to drain your funds.\n\nSpotting phishing scams is tricky, because cybercriminals often go to great lengths to make them look real, like setting up websites that mimic real ones to get you to enter your keys for them to then take. So, look closely at information like the URL of any links, and watch for things like spelling mistakes in emails or an unexpected request for personal information. It's generally better to take your time and investigate even if you get an email that's urgently requiring you to take action.\n\nWith social media and other online scams, also watch for warning signs like getting unrealistic promises of returns or requests to send you crypto, which is really just a way to infiltrate your wallet. And in general, be wary of unsolicited messages.\n\n**Quick tip:** To avoid accidentally falling for phishing emails, verify that the sender's email address is valid and\/or recognizable. Often, scammers use addresses with generic domains and random characters. But sometimes the difference is subtle, like with just one letter being off from a real domain name you trust.\n\nBusiness Insider's Featured Crypto Apps\n\n- ![Public Public Bond Account](<data:image\/svg+xml,%3Csvg xmlns='http:\/\/www.w3.org\/2000\/svg' viewBox='0 0 1 1'%3E%3C\/svg%3E>)\n  \n  ![](https:\/\/i.insider.com\/63dd1c070a08ae0018a6a1ce?width=400)\n  \n  Public Bond Account\n\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\n\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\n\nEditor's Rating\n\n4\\.3\/5\n\nA five pointed star\n\nA five pointed star\n\nA five pointed star\n\nA five pointed star\n\nA five pointed star\n\n[Start investing](https:\/\/affiliate.insider.com\/?feature=CRYPTO&h=307947dba5dbea51bff63bdbe7aba765bf9db809056a259410df8ddfb222e70d&platform=browser&tags=service%3Aquicksilver&u=https%3A%2F%2Fsecure.money.com%2Fpr%2Fu50aea680f01)\n\nOn Public's website\n## How to avoid crypto scams\nAvoiding crypto scams isn't always easy, but some best practices include the following:\n\n### Do your research\nBefore buying any crypto, using an investing platform, or getting into an NFT project, be sure to do your due diligence. That can mean reading whitepapers, researching the project founders, and getting feedback from others in the crypto community.\n\n### Be wary of unsolicited offers\nIf someone reaches out to you out of the blue, especially if they promise high returns or say they're going to give you free crypto, that's a red flag, and you should often ignore these unsolicited messages.\n\n### Don't trust 'guaranteed' returns\nAll investment carries risk. Any crypto or DeFi project promising guaranteed returns or profits is likely a scam or at least misleading.\n\n### Secure your wallet\nDo your research to find a reputable cryptocurrency wallet, and make sure you keep your private keys safe. That includes being very careful about who you share the keys with — generally, you shouldn't have to share with anyone, except in some rare occurrences like perhaps your spouse for estate planning purposes. Also, consider enabling two-factor authentication for added security for your wallet.\n\n### Verify website URLs\nPhishing scams are often effective by imitating real websites, but perhaps the URL is slightly different. So, make sure you're on the right URL before entering private information, and be cautious about clicking any links via email or social media.\n\n### Be cautious on social media\nIn addition to being careful about links you click on, don't take everything you see on social media at face value. Plenty of unscrupulous individuals give fake or misleading investment advice or offer scam giveaways.\n\n## What to do if you've been scammed\nIf you've been scammed, it's not easy to remedy the situation, but there are still important steps you can take:\n\n### Report to authorities\nIf you come across a scam, you can report it to the Federal Trade Commission at ReportFraud.ftc.gov. Also consider reporting a scam to the FBI's Internet Crime Complaint Center (IC3), or your local law enforcement agency. Doing so can help prevent the scam from affecting others while also potentially helping you recover some funds or perhaps make the scammers face legal consequences for their actions.\n\n### Contact your exchange or wallet provider\nWherever you made the transaction that ended up being a scam, try reporting it to the exchange and\/or your crypto wallet provider. This can similarly help prevent the scam from spreading and possibly lead to some recovery.\n\n### Seek legal advice\nDepending on the size of the scam, consider consulting with a lawyer who specializes in cryptocurrency or financial fraud. They may be able to help you seek legal remediation.\n\n## FAQs about crypto scams\n### Can I recover my lost cryptocurrency?\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\n\nThere are services that offer support for recovering lost cryptocurrency, and it's possible actions like lawsuits and law enforcement could help. In general, though, there's no guarantee that you'll recover lost crypto.\n\n### How can I tell if a crypto project is legitimate?\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\n\nCrypto fraud prevention isn't always easy, but you can get a better sense of whether a project is legitimate by researching the founders, reading the whitepaper of an ICO, and asking other investors or advisors you trust.\n\n### What are the red flags of a crypto scam?\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\n\nA crypto scam, whether a Bitcoin scam, Ethereum scam, NFT scam, or anything else, often raises red flags with unrealistic promises, a lack of transparency, and urgency or hype that's used to pressure people into investing or taking action that reveals sensitive information.\n\n[![Headshot of Carter Kilmnann.](<data:image\/svg+xml,%3Csvg xmlns='http:\/\/www.w3.org\/2000\/svg' viewBox='0 0 1 1'%3E%3C\/svg%3E>) ![](https:\/\/i.insider.com\/61a7889c5d47cc0018e8c45d?crop=1:1&width=256&format=jpeg&auto=webp)](https:\/\/www.businessinsider.com\/author\/carter-kilmann)\n\n[Carter Kilmann](https:\/\/www.businessinsider.com\/author\/carter-kilmann)\n\nCarter Kilmann is a financial copywriter, an editor, and the author of [Due Diligence](https:\/\/www.stockduediligence.com\/). He works with a variety of financial publications, digital marketing agencies, and B2B firms. In addition to Insider, you can find his content on The Points Guy, RateGenius, and Money Under 30. You can connect with Carter on [Twitter](https:\/\/twitter.com\/CarterKilmann), [LinkedIn](https:\/\/www.linkedin.com\/in\/carter-kilmann\/), or reach him directly at [carterkilmann@gmail.com](mailto:carterkilmann@gmail.com).\n\nRead more\n\nRead less\n\n[![Jake Safane](<data:image\/svg+xml,%3Csvg xmlns='http:\/\/www.w3.org\/2000\/svg' viewBox='0 0 1 1'%3E%3C\/svg%3E>) ![](https:\/\/i.insider.com\/652eb00f211def8ed8373e18?crop=1:1&width=256&format=jpeg&auto=webp)](https:\/\/www.businessinsider.com\/author\/jake-safane)\n\n[Jake Safane](https:\/\/www.businessinsider.com\/author\/jake-safane)\n\nJake Safane is a freelance writer specializing in finance and sustainability. He runs a corporate sustainability blog, [Carbon Neutral Copy](https:\/\/carbonneutralcopy.com\/), and his work has appeared in publications such as The Economist, CBS MoneyWatch, and the Los Angeles Times.ExperienceJake has been working in financial journalism since 2011, covering areas such as banking and investing for both businesses and individuals. His career has included a mix of in-house reporting jobs at B2B finance publications such as Global Custodian and FundFire, a role in sponsored research at The Economist, and freelance engagements with online publications, financial advisors, and fintech companies.His interest in personal finance dates back to joining his middle school stock trading club, where he learned about markets by doing simulated trading. A high school field trip to the New York Fed further cemented his fascination with the financial system and how seemingly academic concepts can make a big difference in the average person's life.His personal interest in the environment has also carried over into finance, such as by covering ESG and impact investing. He believes that one of the top ways to solve the climate crisis is by helping both businesses and individuals realize the long-term financial benefits that sustainability can bring.In his personal life, he also enjoys playing tennis, going to the gym, and going to the beach with his family — though often just for walks along a paved path, because vacuuming sand trekked in by a toddler and dog really cuts into writing time.ExpertiseJake’s areas of personal finance expertise include:\n\n- Investing\n- Banking\n- Financial Planning\n- Retirement\n- Insurance\n\nEducationJake is a graduate of Boston University, where he wrote for The Daily Free Press and had a show on the school's radio station.\n\nRead more\n\nRead less\n\nA white circle with a black border surrounding a chevron pointing up. 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[Main content](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#post-headline)\n2. [Search](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#search)\n3. [Account](https:\/\/www.businessinsider.com\/personal-finance\/investing\/crypto-scams#account)\n4. [Jump to top of page](https:\/\/www.businessinsider.com\/)","attrs_readable_markdown":"Updated 2024-12-06T21:17:49.868Z\n\n- Cryptocurrency is less regulated than other assets, which can lead to scams, fraud, and financial ruin.\n- There are various forms of crypto market manipulation, including pump-and-dump schemes and rug pulls.\n- You can avoid several common crypto scams by performing due diligence before trading.\n\nA [cryptocurrency](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-cryptocurrency) is a digital token that can be exchanged for goods and services. However, many retail investors and institutions treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date.\n\nAs with any asset, investors must be careful before dabbling in crypto. Crypto investments are prone to scams, in part because they are new and generate a lot of buzz that can rope people into schemes that they should, in reality, avoid.\n\nPlus, cryptocurrencies are [speculative](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-are-penny-stocks) by nature. They lack traditional fundamentals that investors can analyze and assign value to. As a result, cryptos tend to be [volatile](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-volatility) assets — their prices can drastically fluctuate on any given day. That can make it hard to discern what's being manipulated unfairly and what's normal swings.\n\nCrypto markets are also less regulated in general, so it's easier for bad actors to maliciously influence prices and take advantage of unsuspecting investors.\n\nThat's not to say that all crypto investments are dangerous, but investors should be wary of the following common types of crypto scams before they [start investing in crypto](https:\/\/www.businessinsider.com\/personal-finance\/investing\/how-to-buy-cryptocurrency).\n\n## Common types of crypto scams\nCrypto scams can take many forms, some of which also happen with assets like stocks, while some are more unique to crypto.\n\nNamely, crypto investors should watch out for scams such as:\n\n### Rug pulls\nA rug pull occurs when crypto developers abandon a project, such as a new cryptocurrency or [non-fungible token (NFT)](https:\/\/www.businessinsider.com\/personal-finance\/investing\/nft-meaning) but keep the funds raised from investors. Bad actors can list a new token on a decentralized exchange, pair it with a legitimate cryptocurrency, and drum up interest on social media to lure in investors. Once enough money funnels into their token, the developers scratch the project and run with investor funds.\n\nThis scam plagues early investors who think they're getting early access to up-and-coming cryptos, when in reality they're scammed out of their money.\n\nTo avoid this, watch for warning signs like unrealistic\/overly grand promises, anonymity from developers, and a general lack of transparency.\n\n**Quick tip:** By sticking to centralized [cryptocurrency exchanges](https:\/\/www.businessinsider.com\/personal-finance\/investing\/best-crypto-bitcoin-exchanges), which typically have stricter oversight and regulations, you have a better chance of avoiding illegitimate projects.\n\n### Pump-and-dump schemes\nA pump-and-dump scheme represents an individual or group's effort to [inflate](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-inflation) the price of an asset so that they can sell their own holdings for a profit.\n\nIt starts with the \"pump.\" To convince people to buy in, crypto schemers spread false or misleading information about minimally traded coins through social media, forums, and online communities. These posts often contain embellished due diligence (or \"DD\") and promise an impending surge. They'll use emojis like rocket ships paired with moons and diamonds alongside outstretched hands, implying an investment is about to pop and that investors should buy and hold.\n\nThen comes the dump. As momentum swells, other investors cash in and drive the price up, while the schemers cash out and make a quick fortune. Once the market realizes the hype was fake, investors scurry to limit losses and the coin's price plummets.\n\nSpotting a pump-and-dump scheme boils down to credibility. If you use social media platforms like Reddit and Twitter to track crypto movements, look out for anonymous accounts with minimal posting history — or a track record of baseless pumping. These are potentially fraudsters. Also, consider if there are sudden, unexplained price spikes. And if the crypto has no apparent real-world value or utility, it could be a pump-and-dump scheme.\n\n### Other market manipulation scams\nMarket manipulation is the deliberate attempt to artificially influence or interfere with asset prices. While pump and dump is perhaps the best-known type of market manipulation scam, there are several other illicit trading activities that fall under this umbrella term, including:\n\n- **Spoofing:** This creates an illusion of momentum by placing fake buy or sell orders, which are canceled before they're filled. Scammers frequently use dummy accounts and bots to place large trades, giving other investors the impression that demand is either increasing or decreasing.\n- **Front-running:** This is the practice of making trades based on knowledge of future transactions. For instance, miners or node operators can have insight into pending trades. They could then [leverage](https:\/\/www.businessinsider.com\/personal-finance\/investing\/leverage) their inside access to make profitable trades ahead of major price [swings](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-swing-trading).\n- **Churning:** This is excessive trading by a broker in a client's crypto account to generate additional commissions. Asset management firms can receive fees for managing crypto holdings. Therefore, nefarious [b](https:\/\/www.businessinsider.com\/personal-finance\/investing\/stock-trading)r[okers](https:\/\/www.businessinsider.com\/personal-finance\/investing\/stock-trading) could abuse a commission-based payment structure to profit off of unaware clients. On top of unwarranted fees, the impacted individuals could also incur unnecessary tax liabilities as a result of churning.\n\nSince cryptocurrency markets are still relatively new and less regulated, they're more vulnerable to market manipulation. However, there are ways crypto traders can avoid falling victim to these scams.\n\nFor starters, it's best to trade on larger, reputable exchanges that have established security policies and internal controls. Additionally, investors can safeguard against unlawful tactics in the crypto markets by thoroughly researching coins, brokers, and exchanges before making any financial decisions. For instance, legitimate cryptos and companies typically offer potential investors an abundance of learning materials on their websites.\n\n**Quick tip:** Although plenty of investors day trade crypto, market manipulation usually impacts short-term trading activity. So, you can help protect against spontaneous price jumps by adopting a long-term outlook, such as using a [buy-and-hold investing strategy](https:\/\/www.businessinsider.com\/personal-finance\/investing\/how-to-buy-stock).\n\n### Fake ICOs (initial coin offerings)\nAn initial coin offering (ICO) is the crypto equivalent of an [initial public offering](https:\/\/www.businessinsider.com\/personal-finance\/investing\/what-is-ipo) (IPO) for a stock. Through an ICO, companies can raise money to fund a crypto development, such as a token, app, or relevant service. In exchange for pledging funds, the investor receives an issuance of newly minted coins.\n\nWhile IPOs are typically for well-established private businesses, companies that pursue ICOs aren't necessarily in the same position. They could be fledgling startups without any operating history whatsoever, which can make it difficult to differentiate between a real offering and a scam. Similar to rug pulls, ICO scams collect the funds of early investors only to abandon the project shortly after.\n\nAn easy way to recognize an ICO scam — or simply an unprepared management team — is to review the company's whitepaper. This document details the specifications behind the project, including strategy, goals, and market analysis. If the company doesn't provide a whitepaper, that's a red flag. Also, if the whitepaper is unrealistic or there's a general lack of vision for how the ICO will go and how the coin will be used, those are all warning signs.\n\n**Quick tip:** You can perform a background check on the ICO's developers and management team. If the company's ownership is anonymous or has a minimal track record in the crypto space, that should also be a cause of concern.\n\n### Cyber scams\nCrypto markets have unique characteristics relative to other asset markets. However, investors are still susceptible to traditional scams, such as [account hacks and identity theft](https:\/\/www.businessinsider.com\/personal-finance\/credit-score\/best-identity-theft-protection-services).\n\nTo trade crypto, investors need a [crypto wallet](https:\/\/www.businessinsider.com\/personal-finance\/investing\/best-bitcoin-wallet), which can be a digital or physical device. These wallets have keys — both public and private. The former is a public address that allows crypto to be deposited into the wallet, similar to how routing and bank account numbers enable direct deposits. The latter is like the password to an online banking platform. Whoever has access to that password can control the funds within the account.\n\nJust as you wouldn't share your credit card number with a stranger, keep your private keys somewhere safe. Fraudsters can use this information to hack accounts and withdraw funds — and they'll employ various tricks to get investors to reveal their private information.\n\nIn particular, be cautious of crypto phishing emails that may pose as a crypto exchange or wallet provider. The same goes for out-of-the-blue and unsolicited promotions from suspicious websites and imposter accounts on social media. Scammers often pretend to be celebrities or affiliates of major companies, promising guaranteed and immediate returns if you act quickly.\n\nLike with other types of cyber attacks, however, the goal of the fraudsters with cyber phishing scams or social media scams is to simply trick you into giving up sensitive information that they can use to drain your funds.\n\nSpotting phishing scams is tricky, because cybercriminals often go to great lengths to make them look real, like setting up websites that mimic real ones to get you to enter your keys for them to then take. So, look closely at information like the URL of any links, and watch for things like spelling mistakes in emails or an unexpected request for personal information. It's generally better to take your time and investigate even if you get an email that's urgently requiring you to take action.\n\nWith social media and other online scams, also watch for warning signs like getting unrealistic promises of returns or requests to send you crypto, which is really just a way to infiltrate your wallet. And in general, be wary of unsolicited messages.\n\n**Quick tip:** To avoid accidentally falling for phishing emails, verify that the sender's email address is valid and\/or recognizable. Often, scammers use addresses with generic domains and random characters. But sometimes the difference is subtle, like with just one letter being off from a real domain name you trust.\n\nBusiness Insider's Featured Crypto Apps\n\n- ![](https:\/\/i.insider.com\/63dd1c070a08ae0018a6a1ce?width=400)\n  \n  Public Bond Account\n\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\n\nIt indicates an expandable section or menu, or sometimes previous \/ next navigation options.\n\nEditor's Rating\n\n4\\.3\/5\n\nA five pointed starA five pointed starA five pointed starA five pointed starA five pointed star\n## How to avoid crypto scams\nAvoiding crypto scams isn't always easy, but some best practices include the following:\n\n### Do your research\nBefore buying any crypto, using an investing platform, or getting into an NFT project, be sure to do your due diligence. That can mean reading whitepapers, researching the project founders, and getting feedback from others in the crypto community.\n\n### Be wary of unsolicited offers\nIf someone reaches out to you out of the blue, especially if they promise high returns or say they're going to give you free crypto, that's a red flag, and you should often ignore these unsolicited messages.\n\n### Don't trust 'guaranteed' returns\nAll investment carries risk. Any crypto or DeFi project promising guaranteed returns or profits is likely a scam or at least misleading.\n\n### Secure your wallet\nDo your research to find a reputable cryptocurrency wallet, and make sure you keep your private keys safe. That includes being very careful about who you share the keys with — generally, you shouldn't have to share with anyone, except in some rare occurrences like perhaps your spouse for estate planning purposes. Also, consider enabling two-factor authentication for added security for your wallet.\n\n### Verify website URLs\nPhishing scams are often effective by imitating real websites, but perhaps the URL is slightly different. So, make sure you're on the right URL before entering private information, and be cautious about clicking any links via email or social media.\n\n### Be cautious on social media\nIn addition to being careful about links you click on, don't take everything you see on social media at face value. Plenty of unscrupulous individuals give fake or misleading investment advice or offer scam giveaways.\n\n## What to do if you've been scammed\nIf you've been scammed, it's not easy to remedy the situation, but there are still important steps you can take:\n\n### Report to authorities\nIf you come across a scam, you can report it to the Federal Trade Commission at ReportFraud.ftc.gov. Also consider reporting a scam to the FBI's Internet Crime Complaint Center (IC3), or your local law enforcement agency. Doing so can help prevent the scam from affecting others while also potentially helping you recover some funds or perhaps make the scammers face legal consequences for their actions.\n\n### Contact your exchange or wallet provider\nWherever you made the transaction that ended up being a scam, try reporting it to the exchange and\/or your crypto wallet provider. This can similarly help prevent the scam from spreading and possibly lead to some recovery.\n\n### Seek legal advice\nDepending on the size of the scam, consider consulting with a lawyer who specializes in cryptocurrency or financial fraud. They may be able to help you seek legal remediation.\n\n## FAQs about crypto scams\nThere are services that offer support for recovering lost cryptocurrency, and it's possible actions like lawsuits and law enforcement could help. In general, though, there's no guarantee that you'll recover lost crypto.\n\nCrypto fraud prevention isn't always easy, but you can get a better sense of whether a project is legitimate by researching the founders, reading the whitepaper of an ICO, and asking other investors or advisors you trust.\n\nA crypto scam, whether a Bitcoin scam, Ethereum scam, NFT scam, or anything else, often raises red flags with unrealistic promises, a lack of transparency, and urgency or hype that's used to pressure people into investing or taking action that reveals sensitive information.\n\n[![](https:\/\/i.insider.com\/61a7889c5d47cc0018e8c45d?crop=1:1&width=256&format=jpeg&auto=webp)](https:\/\/www.businessinsider.com\/author\/carter-kilmann)\n\nCarter Kilmann is a financial copywriter, an editor, and the author of [Due Diligence](https:\/\/www.stockduediligence.com\/). He works with a variety of financial publications, digital marketing agencies, and B2B firms. In addition to Insider, you can find his content on The Points Guy, RateGenius, and Money Under 30. You can connect with Carter on [Twitter](https:\/\/twitter.com\/CarterKilmann), [LinkedIn](https:\/\/www.linkedin.com\/in\/carter-kilmann\/), or reach him directly at [carterkilmann@gmail.com](mailto:carterkilmann@gmail.com).\n\nRead more Read less\n\n[![](https:\/\/i.insider.com\/652eb00f211def8ed8373e18?crop=1:1&width=256&format=jpeg&auto=webp)](https:\/\/www.businessinsider.com\/author\/jake-safane)\n\nJake Safane is a freelance writer specializing in finance and sustainability. He runs a corporate sustainability blog, [Carbon Neutral Copy](https:\/\/carbonneutralcopy.com\/), and his work has appeared in publications such as The Economist, CBS MoneyWatch, and the Los Angeles Times.ExperienceJake has been working in financial journalism since 2011, covering areas such as banking and investing for both businesses and individuals. His career has included a mix of in-house reporting jobs at B2B finance publications such as Global Custodian and FundFire, a role in sponsored research at The Economist, and freelance engagements with online publications, financial advisors, and fintech companies.His interest in personal finance dates back to joining his middle school stock trading club, where he learned about markets by doing simulated trading. A high school field trip to the New York Fed further cemented his fascination with the financial system and how seemingly academic concepts can make a big difference in the average person's life.His personal interest in the environment has also carried over into finance, such as by covering ESG and impact investing. He believes that one of the top ways to solve the climate crisis is by helping both businesses and individuals realize the long-term financial benefits that sustainability can bring.In his personal life, he also enjoys playing tennis, going to the gym, and going to the beach with his family — though often just for walks along a paved path, because vacuuming sand trekked in by a toddler and dog really cuts into writing time.ExpertiseJake’s areas of personal finance expertise include:\n\n- Investing\n- Banking\n- Financial Planning\n- Retirement\n- Insurance\n\nEducationJake is a graduate of Boston University, where he wrote for The Daily Free Press and had a show on the school's radio station.\n\nRead more Read less","meta_canonical":null}

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Boilerpipe Text	Updated 2024-12-06T21:17:49.868Z Cryptocurrency is less regulated than other assets, which can lead to scams, fraud, and financial ruin. There are various forms of crypto market manipulation, including pump-and-dump schemes and rug pulls. You can avoid several common crypto scams by performing due diligence before trading. A cryptocurrency is a digital token that can be exchanged for goods and services. However, many retail investors and institutions treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date. As with any asset, investors must be careful before dabbling in crypto. Crypto investments are prone to scams, in part because they are new and generate a lot of buzz that can rope people into schemes that they should, in reality, avoid. Plus, cryptocurrencies are speculative by nature. They lack traditional fundamentals that investors can analyze and assign value to. As a result, cryptos tend to be volatile assets — their prices can drastically fluctuate on any given day. That can make it hard to discern what's being manipulated unfairly and what's normal swings. Crypto markets are also less regulated in general, so it's easier for bad actors to maliciously influence prices and take advantage of unsuspecting investors. That's not to say that all crypto investments are dangerous, but investors should be wary of the following common types of crypto scams before they start investing in crypto . Common types of crypto scams Crypto scams can take many forms, some of which also happen with assets like stocks, while some are more unique to crypto. Namely, crypto investors should watch out for scams such as: Rug pulls A rug pull occurs when crypto developers abandon a project, such as a new cryptocurrency or non-fungible token (NFT) but keep the funds raised from investors. Bad actors can list a new token on a decentralized exchange, pair it with a legitimate cryptocurrency, and drum up interest on social media to lure in investors. Once enough money funnels into their token, the developers scratch the project and run with investor funds. This scam plagues early investors who think they're getting early access to up-and-coming cryptos, when in reality they're scammed out of their money. To avoid this, watch for warning signs like unrealistic/overly grand promises, anonymity from developers, and a general lack of transparency. Quick tip: By sticking to centralized cryptocurrency exchanges , which typically have stricter oversight and regulations, you have a better chance of avoiding illegitimate projects. Pump-and-dump schemes A pump-and-dump scheme represents an individual or group's effort to inflate the price of an asset so that they can sell their own holdings for a profit. It starts with the "pump." To convince people to buy in, crypto schemers spread false or misleading information about minimally traded coins through social media, forums, and online communities. These posts often contain embellished due diligence (or "DD") and promise an impending surge. They'll use emojis like rocket ships paired with moons and diamonds alongside outstretched hands, implying an investment is about to pop and that investors should buy and hold. Then comes the dump. As momentum swells, other investors cash in and drive the price up, while the schemers cash out and make a quick fortune. Once the market realizes the hype was fake, investors scurry to limit losses and the coin's price plummets. Spotting a pump-and-dump scheme boils down to credibility. If you use social media platforms like Reddit and Twitter to track crypto movements, look out for anonymous accounts with minimal posting history — or a track record of baseless pumping. These are potentially fraudsters. Also, consider if there are sudden, unexplained price spikes. And if the crypto has no apparent real-world value or utility, it could be a pump-and-dump scheme. Other market manipulation scams Market manipulation is the deliberate attempt to artificially influence or interfere with asset prices. While pump and dump is perhaps the best-known type of market manipulation scam, there are several other illicit trading activities that fall under this umbrella term, including: Spoofing: This creates an illusion of momentum by placing fake buy or sell orders, which are canceled before they're filled. Scammers frequently use dummy accounts and bots to place large trades, giving other investors the impression that demand is either increasing or decreasing. Front-running: This is the practice of making trades based on knowledge of future transactions. For instance, miners or node operators can have insight into pending trades. They could then leverage their inside access to make profitable trades ahead of major price swings . Churning: This is excessive trading by a broker in a client's crypto account to generate additional commissions. Asset management firms can receive fees for managing crypto holdings. Therefore, nefarious b r okers could abuse a commission-based payment structure to profit off of unaware clients. On top of unwarranted fees, the impacted individuals could also incur unnecessary tax liabilities as a result of churning. Since cryptocurrency markets are still relatively new and less regulated, they're more vulnerable to market manipulation. However, there are ways crypto traders can avoid falling victim to these scams. For starters, it's best to trade on larger, reputable exchanges that have established security policies and internal controls. Additionally, investors can safeguard against unlawful tactics in the crypto markets by thoroughly researching coins, brokers, and exchanges before making any financial decisions. For instance, legitimate cryptos and companies typically offer potential investors an abundance of learning materials on their websites. Quick tip: Although plenty of investors day trade crypto, market manipulation usually impacts short-term trading activity. So, you can help protect against spontaneous price jumps by adopting a long-term outlook, such as using a buy-and-hold investing strategy . Fake ICOs (initial coin offerings) An initial coin offering (ICO) is the crypto equivalent of an initial public offering (IPO) for a stock. Through an ICO, companies can raise money to fund a crypto development, such as a token, app, or relevant service. In exchange for pledging funds, the investor receives an issuance of newly minted coins. While IPOs are typically for well-established private businesses, companies that pursue ICOs aren't necessarily in the same position. They could be fledgling startups without any operating history whatsoever, which can make it difficult to differentiate between a real offering and a scam. Similar to rug pulls, ICO scams collect the funds of early investors only to abandon the project shortly after. An easy way to recognize an ICO scam — or simply an unprepared management team — is to review the company's whitepaper. This document details the specifications behind the project, including strategy, goals, and market analysis. If the company doesn't provide a whitepaper, that's a red flag. Also, if the whitepaper is unrealistic or there's a general lack of vision for how the ICO will go and how the coin will be used, those are all warning signs. Quick tip: You can perform a background check on the ICO's developers and management team. If the company's ownership is anonymous or has a minimal track record in the crypto space, that should also be a cause of concern. Cyber scams Crypto markets have unique characteristics relative to other asset markets. However, investors are still susceptible to traditional scams, such as account hacks and identity theft . To trade crypto, investors need a crypto wallet , which can be a digital or physical device. These wallets have keys — both public and private. The former is a public address that allows crypto to be deposited into the wallet, similar to how routing and bank account numbers enable direct deposits. The latter is like the password to an online banking platform. Whoever has access to that password can control the funds within the account. Just as you wouldn't share your credit card number with a stranger, keep your private keys somewhere safe. Fraudsters can use this information to hack accounts and withdraw funds — and they'll employ various tricks to get investors to reveal their private information. In particular, be cautious of crypto phishing emails that may pose as a crypto exchange or wallet provider. The same goes for out-of-the-blue and unsolicited promotions from suspicious websites and imposter accounts on social media. Scammers often pretend to be celebrities or affiliates of major companies, promising guaranteed and immediate returns if you act quickly. Like with other types of cyber attacks, however, the goal of the fraudsters with cyber phishing scams or social media scams is to simply trick you into giving up sensitive information that they can use to drain your funds. Spotting phishing scams is tricky, because cybercriminals often go to great lengths to make them look real, like setting up websites that mimic real ones to get you to enter your keys for them to then take. So, look closely at information like the URL of any links, and watch for things like spelling mistakes in emails or an unexpected request for personal information. It's generally better to take your time and investigate even if you get an email that's urgently requiring you to take action. With social media and other online scams, also watch for warning signs like getting unrealistic promises of returns or requests to send you crypto, which is really just a way to infiltrate your wallet. And in general, be wary of unsolicited messages. Quick tip: To avoid accidentally falling for phishing emails, verify that the sender's email address is valid and/or recognizable. Often, scammers use addresses with generic domains and random characters. But sometimes the difference is subtle, like with just one letter being off from a real domain name you trust. Business Insider's Featured Crypto Apps Public Bond Account Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Editor's Rating 4.3/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star How to avoid crypto scams Avoiding crypto scams isn't always easy, but some best practices include the following: Do your research Before buying any crypto, using an investing platform, or getting into an NFT project, be sure to do your due diligence. That can mean reading whitepapers, researching the project founders, and getting feedback from others in the crypto community. Be wary of unsolicited offers If someone reaches out to you out of the blue, especially if they promise high returns or say they're going to give you free crypto, that's a red flag, and you should often ignore these unsolicited messages. Don't trust 'guaranteed' returns All investment carries risk. Any crypto or DeFi project promising guaranteed returns or profits is likely a scam or at least misleading. Secure your wallet Do your research to find a reputable cryptocurrency wallet, and make sure you keep your private keys safe. That includes being very careful about who you share the keys with — generally, you shouldn't have to share with anyone, except in some rare occurrences like perhaps your spouse for estate planning purposes. Also, consider enabling two-factor authentication for added security for your wallet. Verify website URLs Phishing scams are often effective by imitating real websites, but perhaps the URL is slightly different. So, make sure you're on the right URL before entering private information, and be cautious about clicking any links via email or social media. Be cautious on social media In addition to being careful about links you click on, don't take everything you see on social media at face value. Plenty of unscrupulous individuals give fake or misleading investment advice or offer scam giveaways. What to do if you've been scammed If you've been scammed, it's not easy to remedy the situation, but there are still important steps you can take: Report to authorities If you come across a scam, you can report it to the Federal Trade Commission at ReportFraud.ftc.gov. Also consider reporting a scam to the FBI's Internet Crime Complaint Center (IC3), or your local law enforcement agency. Doing so can help prevent the scam from affecting others while also potentially helping you recover some funds or perhaps make the scammers face legal consequences for their actions. Contact your exchange or wallet provider Wherever you made the transaction that ended up being a scam, try reporting it to the exchange and/or your crypto wallet provider. This can similarly help prevent the scam from spreading and possibly lead to some recovery. Seek legal advice Depending on the size of the scam, consider consulting with a lawyer who specializes in cryptocurrency or financial fraud. They may be able to help you seek legal remediation. FAQs about crypto scams There are services that offer support for recovering lost cryptocurrency, and it's possible actions like lawsuits and law enforcement could help. In general, though, there's no guarantee that you'll recover lost crypto. Crypto fraud prevention isn't always easy, but you can get a better sense of whether a project is legitimate by researching the founders, reading the whitepaper of an ICO, and asking other investors or advisors you trust. A crypto scam, whether a Bitcoin scam, Ethereum scam, NFT scam, or anything else, often raises red flags with unrealistic promises, a lack of transparency, and urgency or hype that's used to pressure people into investing or taking action that reveals sensitive information. Carter Kilmann is a financial copywriter, an editor, and the author of Due Diligence . He works with a variety of financial publications, digital marketing agencies, and B2B firms. In addition to Insider, you can find his content on The Points Guy, RateGenius, and Money Under 30. You can connect with Carter on Twitter , LinkedIn , or reach him directly at carterkilmann@gmail.com . Read more Read less Jake Safane is a freelance writer specializing in finance and sustainability. He runs a corporate sustainability blog, Carbon Neutral Copy , and his work has appeared in publications such as The Economist, CBS MoneyWatch, and the Los Angeles Times. Experience Jake has been working in financial journalism since 2011, covering areas such as banking and investing for both businesses and individuals. His career has included a mix of in-house reporting jobs at B2B finance publications such as Global Custodian and FundFire, a role in sponsored research at The Economist, and freelance engagements with online publications, financial advisors, and fintech companies. His interest in personal finance dates back to joining his middle school stock trading club, where he learned about markets by doing simulated trading. A high school field trip to the New York Fed further cemented his fascination with the financial system and how seemingly academic concepts can make a big difference in the average person's life. His personal interest in the environment has also carried over into finance, such as by covering ESG and impact investing. He believes that one of the top ways to solve the climate crisis is by helping both businesses and individuals realize the long-term financial benefits that sustainability can bring. In his personal life, he also enjoys playing tennis, going to the gym, and going to the beach with his family — though often just for walks along a paved path, because vacuuming sand trekked in by a toddler and dog really cuts into writing time. Expertise Jake’s areas of personal finance expertise include: Investing Banking Financial Planning Retirement Insurance Education Jake is a graduate of Boston University, where he wrote for The Daily Free Press and had a show on the school's radio station. Read more Read less
Markdown	[Subscribe](https://www.businessinsider.com/subscription) [Newsletters](https://www.businessinsider.com/subscription/newsletter) Jump To Section [Common types of crypto scams](https://www.businessinsider.com/personal-finance/investing/crypto-scams#common-types-of-crypto-scams) [How to avoid crypto scams](https://www.businessinsider.com/personal-finance/investing/crypto-scams#how-to-avoid-crypto-scams) [What to do if you've been scammed](https://www.businessinsider.com/personal-finance/investing/crypto-scams#what-to-do-if-you've-been-scammed) [FAQs](https://www.businessinsider.com/personal-finance/investing/crypto-scams#faqs-) [Business](https://www.businessinsider.com/business) [Strategy](https://www.businessinsider.com/strategy) [Economy](https://www.businessinsider.com/economy) [Finance](https://www.businessinsider.com/finance) [Retail](https://www.businessinsider.com/retail) [Advertising](https://www.businessinsider.com/advertising) [Careers](https://www.businessinsider.com/careers) [Law](https://www.businessinsider.com/law) [Media](https://www.businessinsider.com/media) [Real Estate](https://www.businessinsider.com/real-estate) [Small Business](https://www.businessinsider.com/smallbusiness) [The Better Work Project](https://www.businessinsider.com/sc/introducing-the-better-work-project-hub) [Personal Finance](https://www.businessinsider.com/personal-finance) [Tech](https://www.businessinsider.com/tech) [Science](https://www.businessinsider.com/science) [AI](https://www.businessinsider.com/artificial-intelligence) [Enterprise](https://www.businessinsider.com/enterprise) [Transportation](https://www.businessinsider.com/transportation) [Startups](https://www.businessinsider.com/startups) [Innovation](https://www.businessinsider.com/innovation) [Markets](https://markets.businessinsider.com/) [Stocks](https://markets.businessinsider.com/stocks) [Indices](https://markets.businessinsider.com/indices) [Commodities](https://markets.businessinsider.com/commodities) [Crypto](https://markets.businessinsider.com/cryptocurrencies) [Currencies](https://markets.businessinsider.com/currencies) [ETFs](https://markets.businessinsider.com/etfs) [Lifestyle](https://www.businessinsider.com/lifestyle) [Entertainment](https://www.businessinsider.com/entertainment) [Culture](https://www.businessinsider.com/culture) [Travel](https://www.businessinsider.com/travel) [Food](https://www.businessinsider.com/food) [Health](https://www.businessinsider.com/health) [Education](https://www.businessinsider.com/education) [Parenting](https://www.businessinsider.com/parenting) [Military & Defense](https://www.businessinsider.com/defense) [Politics](https://www.businessinsider.com/politics) [Reviews](https://www.businessinsider.com/guides) [Home](https://www.businessinsider.com/guides/home) [Kitchen](https://www.businessinsider.com/guides/kitchen) [Style](https://www.businessinsider.com/guides/style) [Streaming](https://www.businessinsider.com/guides/streaming) [Pets](https://www.businessinsider.com/guides/pets) [Tech](https://www.businessinsider.com/guides/tech) [Deals](https://www.businessinsider.com/guides/deals) [Gifts](https://www.businessinsider.com/guides/gifts) [Tickets](https://www.businessinsider.com/guides/tickets) [Video](https://www.businessinsider.com/video) [Big Business](https://www.businessinsider.com/show/big-business) [So Expensive](https://www.businessinsider.com/show/so-expensive) [View From Above](https://www.businessinsider.com/show/view-from-above) [Small Business](https://www.businessinsider.com/show/small-business) [Authorized Account](https://www.businessinsider.com/show/authorized-account) [Risky Business](https://www.businessinsider.com/show/risky-business) [Boot Camp](https://www.businessinsider.com/show/boot-camp) [Still Standing](https://www.businessinsider.com/show/still-standing) [How Crime Works](https://www.businessinsider.com/show/how-crime-works) [Life Lessons](https://www.businessinsider.com/show/life-lessons) [Subscribe](https://www.businessinsider.com/subscription) [My account]() [Log in]() [Newsletters](https://www.businessinsider.com/subscription/newsletter) US edition [Deutschland & Österreich](https://www.businessinsider.de/?IR=C) [España](https://businessinsider.es/) [Japan](https://www.businessinsider.jp/) [Polska](https://www.businessinsider.com.pl/?IR=C) [TW 全球中文版](https://www.businessinsider.tw/) [Get the app](https://www.businessinsider.com/app "Get the Business Insider app") [Personal Finance](https://www.businessinsider.com/personal-finance) [Investing](https://www.businessinsider.com/personal-finance/investing) [Cryptocurrency](https://www.businessinsider.com/personal-finance/cryptocurrency) # Crypto Scams: Don't Get Caught Off Guard Written by [Carter Kilmann](https://www.businessinsider.com/author/carter-kilmann) and [Jake Safane](https://www.businessinsider.com/author/jake-safane) edited by [Sarah Silbert](https://www.businessinsider.com/author/sarah-silbert) Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our [advertiser disclosure with our list of partners](https://www.businessinsider.com/personal-finance/our-partners) for more details). However, our opinions are our own. See [how we rate investing products](https://www.businessinsider.com/personal-finance/investing/investing-rating-methodology) to write unbiased product reviews. ![Frustrated trader who fell for a crypto scam gripping his head while sitting in front of monitors showing stock charts.](https://i.insider.com/61a79f2b0ed48c0019e53547?width=700) Since cryptocurrency markets are still relatively new and less regulated, they’re more vulnerable to market manipulation. Victoria Gnatiuk/Getty [Common types of crypto scams](https://www.businessinsider.com/personal-finance/investing/crypto-scams#common-types-of-crypto-scams) [How to avoid crypto scams](https://www.businessinsider.com/personal-finance/investing/crypto-scams#how-to-avoid-crypto-scams) [What to do if you've been scammed](https://www.businessinsider.com/personal-finance/investing/crypto-scams#what-to-do-if-you've-been-scammed) [FAQs](https://www.businessinsider.com/personal-finance/investing/crypto-scams#faqs-) Updated 2024-12-06T21:17:49.868Z Share Copy link [Email](<mailto:?subject=Crypto Scams: Don't Get Caught Off Guard&body=Crypto%20Scams%3A%20Don't%20Get%20Caught%20Off%20Guard%0D%0A%0D%0Ahttps%3A%2F%2Fwww.businessinsider.com%2Fpersonal-finance%2Finvesting%2Fcrypto-scams&> "Email") Facebook WhatsApp X LinkedIn Bluesky Threads An icon in the shape of a lightning bolt. Impact Link Save Saved [Read in app](https://insider-app.onelink.me/4cpG/?af_js_web=true&af_ss_ver=2_3_0&af_dp=insider%3A%2F%2Fbi%2Fpost%2Fpersonal-finance%2Finvesting%2Fcrypto-scams&af_force_deeplink=true&is_retargeting=true&deep_link_value=https%3A%2F%2Fwww.businessinsider.com%2Fpersonal-finance%2Finvesting%2Fcrypto-scams&pid=businessinsider&c=post_page_share_bar_v2_smart_4.13.23 "Download the app") - Cryptocurrency is less regulated than other assets, which can lead to scams, fraud, and financial ruin. - There are various forms of crypto market manipulation, including pump-and-dump schemes and rug pulls. - You can avoid several common crypto scams by performing due diligence before trading. A [cryptocurrency](https://www.businessinsider.com/personal-finance/investing/what-is-cryptocurrency) is a digital token that can be exchanged for goods and services. However, many retail investors and institutions treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date. As with any asset, investors must be careful before dabbling in crypto. Crypto investments are prone to scams, in part because they are new and generate a lot of buzz that can rope people into schemes that they should, in reality, avoid. Plus, cryptocurrencies are [speculative](https://www.businessinsider.com/personal-finance/investing/what-are-penny-stocks) by nature. They lack traditional fundamentals that investors can analyze and assign value to. As a result, cryptos tend to be [volatile](https://www.businessinsider.com/personal-finance/investing/what-is-volatility) assets — their prices can drastically fluctuate on any given day. That can make it hard to discern what's being manipulated unfairly and what's normal swings. Crypto markets are also less regulated in general, so it's easier for bad actors to maliciously influence prices and take advantage of unsuspecting investors. That's not to say that all crypto investments are dangerous, but investors should be wary of the following common types of crypto scams before they [start investing in crypto](https://www.businessinsider.com/personal-finance/investing/how-to-buy-cryptocurrency). ## Common types of crypto scams Crypto scams can take many forms, some of which also happen with assets like stocks, while some are more unique to crypto. Namely, crypto investors should watch out for scams such as: ### Rug pulls A rug pull occurs when crypto developers abandon a project, such as a new cryptocurrency or [non-fungible token (NFT)](https://www.businessinsider.com/personal-finance/investing/nft-meaning) but keep the funds raised from investors. Bad actors can list a new token on a decentralized exchange, pair it with a legitimate cryptocurrency, and drum up interest on social media to lure in investors. Once enough money funnels into their token, the developers scratch the project and run with investor funds. This scam plagues early investors who think they're getting early access to up-and-coming cryptos, when in reality they're scammed out of their money. To avoid this, watch for warning signs like unrealistic/overly grand promises, anonymity from developers, and a general lack of transparency. Quick tip: By sticking to centralized [cryptocurrency exchanges](https://www.businessinsider.com/personal-finance/investing/best-crypto-bitcoin-exchanges), which typically have stricter oversight and regulations, you have a better chance of avoiding illegitimate projects. ### Pump-and-dump schemes A pump-and-dump scheme represents an individual or group's effort to [inflate](https://www.businessinsider.com/personal-finance/investing/what-is-inflation) the price of an asset so that they can sell their own holdings for a profit. It starts with the "pump." To convince people to buy in, crypto schemers spread false or misleading information about minimally traded coins through social media, forums, and online communities. These posts often contain embellished due diligence (or "DD") and promise an impending surge. They'll use emojis like rocket ships paired with moons and diamonds alongside outstretched hands, implying an investment is about to pop and that investors should buy and hold. Then comes the dump. As momentum swells, other investors cash in and drive the price up, while the schemers cash out and make a quick fortune. Once the market realizes the hype was fake, investors scurry to limit losses and the coin's price plummets. Spotting a pump-and-dump scheme boils down to credibility. If you use social media platforms like Reddit and Twitter to track crypto movements, look out for anonymous accounts with minimal posting history — or a track record of baseless pumping. These are potentially fraudsters. Also, consider if there are sudden, unexplained price spikes. And if the crypto has no apparent real-world value or utility, it could be a pump-and-dump scheme. ### Other market manipulation scams Market manipulation is the deliberate attempt to artificially influence or interfere with asset prices. While pump and dump is perhaps the best-known type of market manipulation scam, there are several other illicit trading activities that fall under this umbrella term, including: - Spoofing: This creates an illusion of momentum by placing fake buy or sell orders, which are canceled before they're filled. Scammers frequently use dummy accounts and bots to place large trades, giving other investors the impression that demand is either increasing or decreasing. - Front-running: This is the practice of making trades based on knowledge of future transactions. For instance, miners or node operators can have insight into pending trades. They could then [leverage](https://www.businessinsider.com/personal-finance/investing/leverage) their inside access to make profitable trades ahead of major price [swings](https://www.businessinsider.com/personal-finance/investing/what-is-swing-trading). - Churning: This is excessive trading by a broker in a client's crypto account to generate additional commissions. Asset management firms can receive fees for managing crypto holdings. Therefore, nefarious [b](https://www.businessinsider.com/personal-finance/investing/stock-trading)r[okers](https://www.businessinsider.com/personal-finance/investing/stock-trading) could abuse a commission-based payment structure to profit off of unaware clients. On top of unwarranted fees, the impacted individuals could also incur unnecessary tax liabilities as a result of churning. Since cryptocurrency markets are still relatively new and less regulated, they're more vulnerable to market manipulation. However, there are ways crypto traders can avoid falling victim to these scams. For starters, it's best to trade on larger, reputable exchanges that have established security policies and internal controls. Additionally, investors can safeguard against unlawful tactics in the crypto markets by thoroughly researching coins, brokers, and exchanges before making any financial decisions. For instance, legitimate cryptos and companies typically offer potential investors an abundance of learning materials on their websites. Quick tip: Although plenty of investors day trade crypto, market manipulation usually impacts short-term trading activity. So, you can help protect against spontaneous price jumps by adopting a long-term outlook, such as using a [buy-and-hold investing strategy](https://www.businessinsider.com/personal-finance/investing/how-to-buy-stock). ### Fake ICOs (initial coin offerings) An initial coin offering (ICO) is the crypto equivalent of an [initial public offering](https://www.businessinsider.com/personal-finance/investing/what-is-ipo) (IPO) for a stock. Through an ICO, companies can raise money to fund a crypto development, such as a token, app, or relevant service. In exchange for pledging funds, the investor receives an issuance of newly minted coins. While IPOs are typically for well-established private businesses, companies that pursue ICOs aren't necessarily in the same position. They could be fledgling startups without any operating history whatsoever, which can make it difficult to differentiate between a real offering and a scam. Similar to rug pulls, ICO scams collect the funds of early investors only to abandon the project shortly after. An easy way to recognize an ICO scam — or simply an unprepared management team — is to review the company's whitepaper. This document details the specifications behind the project, including strategy, goals, and market analysis. If the company doesn't provide a whitepaper, that's a red flag. Also, if the whitepaper is unrealistic or there's a general lack of vision for how the ICO will go and how the coin will be used, those are all warning signs. Quick tip: You can perform a background check on the ICO's developers and management team. If the company's ownership is anonymous or has a minimal track record in the crypto space, that should also be a cause of concern. ### Cyber scams Crypto markets have unique characteristics relative to other asset markets. However, investors are still susceptible to traditional scams, such as [account hacks and identity theft](https://www.businessinsider.com/personal-finance/credit-score/best-identity-theft-protection-services). To trade crypto, investors need a [crypto wallet](https://www.businessinsider.com/personal-finance/investing/best-bitcoin-wallet), which can be a digital or physical device. These wallets have keys — both public and private. The former is a public address that allows crypto to be deposited into the wallet, similar to how routing and bank account numbers enable direct deposits. The latter is like the password to an online banking platform. Whoever has access to that password can control the funds within the account. Just as you wouldn't share your credit card number with a stranger, keep your private keys somewhere safe. Fraudsters can use this information to hack accounts and withdraw funds — and they'll employ various tricks to get investors to reveal their private information. In particular, be cautious of crypto phishing emails that may pose as a crypto exchange or wallet provider. The same goes for out-of-the-blue and unsolicited promotions from suspicious websites and imposter accounts on social media. Scammers often pretend to be celebrities or affiliates of major companies, promising guaranteed and immediate returns if you act quickly. Like with other types of cyber attacks, however, the goal of the fraudsters with cyber phishing scams or social media scams is to simply trick you into giving up sensitive information that they can use to drain your funds. Spotting phishing scams is tricky, because cybercriminals often go to great lengths to make them look real, like setting up websites that mimic real ones to get you to enter your keys for them to then take. So, look closely at information like the URL of any links, and watch for things like spelling mistakes in emails or an unexpected request for personal information. It's generally better to take your time and investigate even if you get an email that's urgently requiring you to take action. With social media and other online scams, also watch for warning signs like getting unrealistic promises of returns or requests to send you crypto, which is really just a way to infiltrate your wallet. And in general, be wary of unsolicited messages. Quick tip: To avoid accidentally falling for phishing emails, verify that the sender's email address is valid and/or recognizable. Often, scammers use addresses with generic domains and random characters. But sometimes the difference is subtle, like with just one letter being off from a real domain name you trust. Business Insider's Featured Crypto Apps - ![Public Public Bond Account](<data:image/svg+xml,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 1 1'%3E%3C/svg%3E>) ![](https://i.insider.com/63dd1c070a08ae0018a6a1ce?width=400) Public Bond Account It indicates an expandable section or menu, or sometimes previous / next navigation options. It indicates an expandable section or menu, or sometimes previous / next navigation options. Editor's Rating 4\.3/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star [Start investing](https://affiliate.insider.com/?feature=CRYPTO&h=307947dba5dbea51bff63bdbe7aba765bf9db809056a259410df8ddfb222e70d&platform=browser&tags=service%3Aquicksilver&u=https%3A%2F%2Fsecure.money.com%2Fpr%2Fu50aea680f01) On Public's website ## How to avoid crypto scams Avoiding crypto scams isn't always easy, but some best practices include the following: ### Do your research Before buying any crypto, using an investing platform, or getting into an NFT project, be sure to do your due diligence. That can mean reading whitepapers, researching the project founders, and getting feedback from others in the crypto community. ### Be wary of unsolicited offers If someone reaches out to you out of the blue, especially if they promise high returns or say they're going to give you free crypto, that's a red flag, and you should often ignore these unsolicited messages. ### Don't trust 'guaranteed' returns All investment carries risk. Any crypto or DeFi project promising guaranteed returns or profits is likely a scam or at least misleading. ### Secure your wallet Do your research to find a reputable cryptocurrency wallet, and make sure you keep your private keys safe. That includes being very careful about who you share the keys with — generally, you shouldn't have to share with anyone, except in some rare occurrences like perhaps your spouse for estate planning purposes. Also, consider enabling two-factor authentication for added security for your wallet. ### Verify website URLs Phishing scams are often effective by imitating real websites, but perhaps the URL is slightly different. So, make sure you're on the right URL before entering private information, and be cautious about clicking any links via email or social media. ### Be cautious on social media In addition to being careful about links you click on, don't take everything you see on social media at face value. Plenty of unscrupulous individuals give fake or misleading investment advice or offer scam giveaways. ## What to do if you've been scammed If you've been scammed, it's not easy to remedy the situation, but there are still important steps you can take: ### Report to authorities If you come across a scam, you can report it to the Federal Trade Commission at ReportFraud.ftc.gov. Also consider reporting a scam to the FBI's Internet Crime Complaint Center (IC3), or your local law enforcement agency. Doing so can help prevent the scam from affecting others while also potentially helping you recover some funds or perhaps make the scammers face legal consequences for their actions. ### Contact your exchange or wallet provider Wherever you made the transaction that ended up being a scam, try reporting it to the exchange and/or your crypto wallet provider. This can similarly help prevent the scam from spreading and possibly lead to some recovery. ### Seek legal advice Depending on the size of the scam, consider consulting with a lawyer who specializes in cryptocurrency or financial fraud. They may be able to help you seek legal remediation. ## FAQs about crypto scams ### Can I recover my lost cryptocurrency? It indicates an expandable section or menu, or sometimes previous / next navigation options. There are services that offer support for recovering lost cryptocurrency, and it's possible actions like lawsuits and law enforcement could help. In general, though, there's no guarantee that you'll recover lost crypto. ### How can I tell if a crypto project is legitimate? It indicates an expandable section or menu, or sometimes previous / next navigation options. Crypto fraud prevention isn't always easy, but you can get a better sense of whether a project is legitimate by researching the founders, reading the whitepaper of an ICO, and asking other investors or advisors you trust. ### What are the red flags of a crypto scam? It indicates an expandable section or menu, or sometimes previous / next navigation options. A crypto scam, whether a Bitcoin scam, Ethereum scam, NFT scam, or anything else, often raises red flags with unrealistic promises, a lack of transparency, and urgency or hype that's used to pressure people into investing or taking action that reveals sensitive information. [![Headshot of Carter Kilmnann.](<data:image/svg+xml,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 1 1'%3E%3C/svg%3E>) ![](https://i.insider.com/61a7889c5d47cc0018e8c45d?crop=1:1&width=256&format=jpeg&auto=webp)](https://www.businessinsider.com/author/carter-kilmann) [Carter Kilmann](https://www.businessinsider.com/author/carter-kilmann) Carter Kilmann is a financial copywriter, an editor, and the author of [Due Diligence](https://www.stockduediligence.com/). He works with a variety of financial publications, digital marketing agencies, and B2B firms. In addition to Insider, you can find his content on The Points Guy, RateGenius, and Money Under 30. You can connect with Carter on [Twitter](https://twitter.com/CarterKilmann), [LinkedIn](https://www.linkedin.com/in/carter-kilmann/), or reach him directly at [carterkilmann@gmail.com](mailto:carterkilmann@gmail.com). Read more Read less [![Jake Safane](<data:image/svg+xml,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 1 1'%3E%3C/svg%3E>) ![](https://i.insider.com/652eb00f211def8ed8373e18?crop=1:1&width=256&format=jpeg&auto=webp)](https://www.businessinsider.com/author/jake-safane) [Jake Safane](https://www.businessinsider.com/author/jake-safane) Jake Safane is a freelance writer specializing in finance and sustainability. He runs a corporate sustainability blog, [Carbon Neutral Copy](https://carbonneutralcopy.com/), and his work has appeared in publications such as The Economist, CBS MoneyWatch, and the Los Angeles Times.ExperienceJake has been working in financial journalism since 2011, covering areas such as banking and investing for both businesses and individuals. His career has included a mix of in-house reporting jobs at B2B finance publications such as Global Custodian and FundFire, a role in sponsored research at The Economist, and freelance engagements with online publications, financial advisors, and fintech companies.His interest in personal finance dates back to joining his middle school stock trading club, where he learned about markets by doing simulated trading. A high school field trip to the New York Fed further cemented his fascination with the financial system and how seemingly academic concepts can make a big difference in the average person's life.His personal interest in the environment has also carried over into finance, such as by covering ESG and impact investing. He believes that one of the top ways to solve the climate crisis is by helping both businesses and individuals realize the long-term financial benefits that sustainability can bring.In his personal life, he also enjoys playing tennis, going to the gym, and going to the beach with his family — though often just for walks along a paved path, because vacuuming sand trekked in by a toddler and dog really cuts into writing time.ExpertiseJake’s areas of personal finance expertise include: - Investing - Banking - Financial Planning - Retirement - Insurance EducationJake is a graduate of Boston University, where he wrote for The Daily Free Press and had a show on the school's radio station. Read more Read less A white circle with a black border surrounding a chevron pointing up. It indicates 'click here to go back to the top of the page'. 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Readable Markdown	Updated 2024-12-06T21:17:49.868Z - Cryptocurrency is less regulated than other assets, which can lead to scams, fraud, and financial ruin. - There are various forms of crypto market manipulation, including pump-and-dump schemes and rug pulls. - You can avoid several common crypto scams by performing due diligence before trading. A [cryptocurrency](https://www.businessinsider.com/personal-finance/investing/what-is-cryptocurrency) is a digital token that can be exchanged for goods and services. However, many retail investors and institutions treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date. As with any asset, investors must be careful before dabbling in crypto. Crypto investments are prone to scams, in part because they are new and generate a lot of buzz that can rope people into schemes that they should, in reality, avoid. Plus, cryptocurrencies are [speculative](https://www.businessinsider.com/personal-finance/investing/what-are-penny-stocks) by nature. They lack traditional fundamentals that investors can analyze and assign value to. As a result, cryptos tend to be [volatile](https://www.businessinsider.com/personal-finance/investing/what-is-volatility) assets — their prices can drastically fluctuate on any given day. That can make it hard to discern what's being manipulated unfairly and what's normal swings. Crypto markets are also less regulated in general, so it's easier for bad actors to maliciously influence prices and take advantage of unsuspecting investors. That's not to say that all crypto investments are dangerous, but investors should be wary of the following common types of crypto scams before they [start investing in crypto](https://www.businessinsider.com/personal-finance/investing/how-to-buy-cryptocurrency). ## Common types of crypto scams Crypto scams can take many forms, some of which also happen with assets like stocks, while some are more unique to crypto. Namely, crypto investors should watch out for scams such as: ### Rug pulls A rug pull occurs when crypto developers abandon a project, such as a new cryptocurrency or [non-fungible token (NFT)](https://www.businessinsider.com/personal-finance/investing/nft-meaning) but keep the funds raised from investors. Bad actors can list a new token on a decentralized exchange, pair it with a legitimate cryptocurrency, and drum up interest on social media to lure in investors. Once enough money funnels into their token, the developers scratch the project and run with investor funds. This scam plagues early investors who think they're getting early access to up-and-coming cryptos, when in reality they're scammed out of their money. To avoid this, watch for warning signs like unrealistic/overly grand promises, anonymity from developers, and a general lack of transparency. Quick tip: By sticking to centralized [cryptocurrency exchanges](https://www.businessinsider.com/personal-finance/investing/best-crypto-bitcoin-exchanges), which typically have stricter oversight and regulations, you have a better chance of avoiding illegitimate projects. ### Pump-and-dump schemes A pump-and-dump scheme represents an individual or group's effort to [inflate](https://www.businessinsider.com/personal-finance/investing/what-is-inflation) the price of an asset so that they can sell their own holdings for a profit. It starts with the "pump." To convince people to buy in, crypto schemers spread false or misleading information about minimally traded coins through social media, forums, and online communities. These posts often contain embellished due diligence (or "DD") and promise an impending surge. They'll use emojis like rocket ships paired with moons and diamonds alongside outstretched hands, implying an investment is about to pop and that investors should buy and hold. Then comes the dump. As momentum swells, other investors cash in and drive the price up, while the schemers cash out and make a quick fortune. Once the market realizes the hype was fake, investors scurry to limit losses and the coin's price plummets. Spotting a pump-and-dump scheme boils down to credibility. If you use social media platforms like Reddit and Twitter to track crypto movements, look out for anonymous accounts with minimal posting history — or a track record of baseless pumping. These are potentially fraudsters. Also, consider if there are sudden, unexplained price spikes. And if the crypto has no apparent real-world value or utility, it could be a pump-and-dump scheme. ### Other market manipulation scams Market manipulation is the deliberate attempt to artificially influence or interfere with asset prices. While pump and dump is perhaps the best-known type of market manipulation scam, there are several other illicit trading activities that fall under this umbrella term, including: - Spoofing: This creates an illusion of momentum by placing fake buy or sell orders, which are canceled before they're filled. Scammers frequently use dummy accounts and bots to place large trades, giving other investors the impression that demand is either increasing or decreasing. - Front-running: This is the practice of making trades based on knowledge of future transactions. For instance, miners or node operators can have insight into pending trades. They could then [leverage](https://www.businessinsider.com/personal-finance/investing/leverage) their inside access to make profitable trades ahead of major price [swings](https://www.businessinsider.com/personal-finance/investing/what-is-swing-trading). - Churning: This is excessive trading by a broker in a client's crypto account to generate additional commissions. Asset management firms can receive fees for managing crypto holdings. Therefore, nefarious [b](https://www.businessinsider.com/personal-finance/investing/stock-trading)r[okers](https://www.businessinsider.com/personal-finance/investing/stock-trading) could abuse a commission-based payment structure to profit off of unaware clients. On top of unwarranted fees, the impacted individuals could also incur unnecessary tax liabilities as a result of churning. Since cryptocurrency markets are still relatively new and less regulated, they're more vulnerable to market manipulation. However, there are ways crypto traders can avoid falling victim to these scams. For starters, it's best to trade on larger, reputable exchanges that have established security policies and internal controls. Additionally, investors can safeguard against unlawful tactics in the crypto markets by thoroughly researching coins, brokers, and exchanges before making any financial decisions. For instance, legitimate cryptos and companies typically offer potential investors an abundance of learning materials on their websites. Quick tip: Although plenty of investors day trade crypto, market manipulation usually impacts short-term trading activity. So, you can help protect against spontaneous price jumps by adopting a long-term outlook, such as using a [buy-and-hold investing strategy](https://www.businessinsider.com/personal-finance/investing/how-to-buy-stock). ### Fake ICOs (initial coin offerings) An initial coin offering (ICO) is the crypto equivalent of an [initial public offering](https://www.businessinsider.com/personal-finance/investing/what-is-ipo) (IPO) for a stock. Through an ICO, companies can raise money to fund a crypto development, such as a token, app, or relevant service. In exchange for pledging funds, the investor receives an issuance of newly minted coins. While IPOs are typically for well-established private businesses, companies that pursue ICOs aren't necessarily in the same position. They could be fledgling startups without any operating history whatsoever, which can make it difficult to differentiate between a real offering and a scam. Similar to rug pulls, ICO scams collect the funds of early investors only to abandon the project shortly after. An easy way to recognize an ICO scam — or simply an unprepared management team — is to review the company's whitepaper. This document details the specifications behind the project, including strategy, goals, and market analysis. If the company doesn't provide a whitepaper, that's a red flag. Also, if the whitepaper is unrealistic or there's a general lack of vision for how the ICO will go and how the coin will be used, those are all warning signs. Quick tip: You can perform a background check on the ICO's developers and management team. If the company's ownership is anonymous or has a minimal track record in the crypto space, that should also be a cause of concern. ### Cyber scams Crypto markets have unique characteristics relative to other asset markets. However, investors are still susceptible to traditional scams, such as [account hacks and identity theft](https://www.businessinsider.com/personal-finance/credit-score/best-identity-theft-protection-services). To trade crypto, investors need a [crypto wallet](https://www.businessinsider.com/personal-finance/investing/best-bitcoin-wallet), which can be a digital or physical device. These wallets have keys — both public and private. The former is a public address that allows crypto to be deposited into the wallet, similar to how routing and bank account numbers enable direct deposits. The latter is like the password to an online banking platform. Whoever has access to that password can control the funds within the account. Just as you wouldn't share your credit card number with a stranger, keep your private keys somewhere safe. Fraudsters can use this information to hack accounts and withdraw funds — and they'll employ various tricks to get investors to reveal their private information. In particular, be cautious of crypto phishing emails that may pose as a crypto exchange or wallet provider. The same goes for out-of-the-blue and unsolicited promotions from suspicious websites and imposter accounts on social media. Scammers often pretend to be celebrities or affiliates of major companies, promising guaranteed and immediate returns if you act quickly. Like with other types of cyber attacks, however, the goal of the fraudsters with cyber phishing scams or social media scams is to simply trick you into giving up sensitive information that they can use to drain your funds. Spotting phishing scams is tricky, because cybercriminals often go to great lengths to make them look real, like setting up websites that mimic real ones to get you to enter your keys for them to then take. So, look closely at information like the URL of any links, and watch for things like spelling mistakes in emails or an unexpected request for personal information. It's generally better to take your time and investigate even if you get an email that's urgently requiring you to take action. With social media and other online scams, also watch for warning signs like getting unrealistic promises of returns or requests to send you crypto, which is really just a way to infiltrate your wallet. And in general, be wary of unsolicited messages. Quick tip: To avoid accidentally falling for phishing emails, verify that the sender's email address is valid and/or recognizable. Often, scammers use addresses with generic domains and random characters. But sometimes the difference is subtle, like with just one letter being off from a real domain name you trust. Business Insider's Featured Crypto Apps - ![](https://i.insider.com/63dd1c070a08ae0018a6a1ce?width=400) Public Bond Account It indicates an expandable section or menu, or sometimes previous / next navigation options. It indicates an expandable section or menu, or sometimes previous / next navigation options. Editor's Rating 4\.3/5 A five pointed starA five pointed starA five pointed starA five pointed starA five pointed star ## How to avoid crypto scams Avoiding crypto scams isn't always easy, but some best practices include the following: ### Do your research Before buying any crypto, using an investing platform, or getting into an NFT project, be sure to do your due diligence. That can mean reading whitepapers, researching the project founders, and getting feedback from others in the crypto community. ### Be wary of unsolicited offers If someone reaches out to you out of the blue, especially if they promise high returns or say they're going to give you free crypto, that's a red flag, and you should often ignore these unsolicited messages. ### Don't trust 'guaranteed' returns All investment carries risk. Any crypto or DeFi project promising guaranteed returns or profits is likely a scam or at least misleading. ### Secure your wallet Do your research to find a reputable cryptocurrency wallet, and make sure you keep your private keys safe. That includes being very careful about who you share the keys with — generally, you shouldn't have to share with anyone, except in some rare occurrences like perhaps your spouse for estate planning purposes. Also, consider enabling two-factor authentication for added security for your wallet. ### Verify website URLs Phishing scams are often effective by imitating real websites, but perhaps the URL is slightly different. So, make sure you're on the right URL before entering private information, and be cautious about clicking any links via email or social media. ### Be cautious on social media In addition to being careful about links you click on, don't take everything you see on social media at face value. Plenty of unscrupulous individuals give fake or misleading investment advice or offer scam giveaways. ## What to do if you've been scammed If you've been scammed, it's not easy to remedy the situation, but there are still important steps you can take: ### Report to authorities If you come across a scam, you can report it to the Federal Trade Commission at ReportFraud.ftc.gov. Also consider reporting a scam to the FBI's Internet Crime Complaint Center (IC3), or your local law enforcement agency. Doing so can help prevent the scam from affecting others while also potentially helping you recover some funds or perhaps make the scammers face legal consequences for their actions. ### Contact your exchange or wallet provider Wherever you made the transaction that ended up being a scam, try reporting it to the exchange and/or your crypto wallet provider. This can similarly help prevent the scam from spreading and possibly lead to some recovery. ### Seek legal advice Depending on the size of the scam, consider consulting with a lawyer who specializes in cryptocurrency or financial fraud. They may be able to help you seek legal remediation. ## FAQs about crypto scams There are services that offer support for recovering lost cryptocurrency, and it's possible actions like lawsuits and law enforcement could help. In general, though, there's no guarantee that you'll recover lost crypto. Crypto fraud prevention isn't always easy, but you can get a better sense of whether a project is legitimate by researching the founders, reading the whitepaper of an ICO, and asking other investors or advisors you trust. A crypto scam, whether a Bitcoin scam, Ethereum scam, NFT scam, or anything else, often raises red flags with unrealistic promises, a lack of transparency, and urgency or hype that's used to pressure people into investing or taking action that reveals sensitive information. [![](https://i.insider.com/61a7889c5d47cc0018e8c45d?crop=1:1&width=256&format=jpeg&auto=webp)](https://www.businessinsider.com/author/carter-kilmann) Carter Kilmann is a financial copywriter, an editor, and the author of [Due Diligence](https://www.stockduediligence.com/). He works with a variety of financial publications, digital marketing agencies, and B2B firms. In addition to Insider, you can find his content on The Points Guy, RateGenius, and Money Under 30. You can connect with Carter on [Twitter](https://twitter.com/CarterKilmann), [LinkedIn](https://www.linkedin.com/in/carter-kilmann/), or reach him directly at [carterkilmann@gmail.com](mailto:carterkilmann@gmail.com). Read more Read less [![](https://i.insider.com/652eb00f211def8ed8373e18?crop=1:1&width=256&format=jpeg&auto=webp)](https://www.businessinsider.com/author/jake-safane) Jake Safane is a freelance writer specializing in finance and sustainability. He runs a corporate sustainability blog, [Carbon Neutral Copy](https://carbonneutralcopy.com/), and his work has appeared in publications such as The Economist, CBS MoneyWatch, and the Los Angeles Times.ExperienceJake has been working in financial journalism since 2011, covering areas such as banking and investing for both businesses and individuals. His career has included a mix of in-house reporting jobs at B2B finance publications such as Global Custodian and FundFire, a role in sponsored research at The Economist, and freelance engagements with online publications, financial advisors, and fintech companies.His interest in personal finance dates back to joining his middle school stock trading club, where he learned about markets by doing simulated trading. A high school field trip to the New York Fed further cemented his fascination with the financial system and how seemingly academic concepts can make a big difference in the average person's life.His personal interest in the environment has also carried over into finance, such as by covering ESG and impact investing. He believes that one of the top ways to solve the climate crisis is by helping both businesses and individuals realize the long-term financial benefits that sustainability can bring.In his personal life, he also enjoys playing tennis, going to the gym, and going to the beach with his family — though often just for walks along a paved path, because vacuuming sand trekked in by a toddler and dog really cuts into writing time.ExpertiseJake’s areas of personal finance expertise include: - Investing - Banking - Financial Planning - Retirement - Insurance EducationJake is a graduate of Boston University, where he wrote for The Daily Free Press and had a show on the school's radio station. Read more Read less
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