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How to avoid cryptocurrency scams
How to avoid cryptocurrency scams

Coinme tips to avoiding cryptocurrency scams

Updated over a month ago

Cryptocurrency transactions are irreversible.

If you send cryptocurrency to a third party, you cannot reverse or stop the payment. Be sure to:

  • Verify the legitimacy of third-party services and merchants before sending cryptocurrency.

  • Only send cryptocurrency to entities you trust.

If you believe you've been scammed, review the information below for steps based on the type of scam.

Tips on Recognizing Cryptocurrency Scams:

  1. High-Pressure Sales Tactics:

    • Multiple calls pressuring you to act immediately.

  2. No Trading Experience Needed:

    • Assurances that lack of trading knowledge is not an issue; it's handled automatically.

  3. Contacted Out of the Blue:

    • Unsolicited contact after your crypto-currency research or interest.

  4. Upfront Payment Required:

    • Request to send money before any services are provided.

  5. Request for Personal or Financial Information:

    • Solicitation for sensitive details.

  6. Secrecy Requested:

    • Instructions to keep the transaction confidential.

  7. Guarantee of High Returns:

    • Unrealistic promises like 300% growth.

  8. Sounds Too Good to Be True:

    • Presentation of online account details with rapid, unrealistic growth to encourage further investment.


Common Scams and What to Do:

  1. Warrant Scams:

  • Scammers impersonate law enforcement or government agencies, claiming there is a warrant for your arrest.

  • They often demand immediate payment (sometimes in cryptocurrency) to "clear" the warrant.

  • Scammers may use threats of jail time to pressure victims into transferring funds paying quickly.

  • They will tell you to put a random phone into the kiosk.

  • What to Do If Scammed: Do not engage; legitimate authorities do not demand payment over the phone. Seek assistance from local law enforcement.

  • What to Do If Scammed:

    • Seek assistance from local law enforcement via their non-emergency line.

2. Technical Support and Impersonation Scams:

  • Fraudsters set up scam customer support lines, impersonating various companies.

  • They often target individuals online, using social engineering to deceive and manipulate victims into providing personal information.

  • Scammers generate outbound calls directly to potential victims, making false claims for fraudulent purposes.

  • What to Do If Scammed:

    • Seek assistance from local law enforcement.

3. Investment Scams:

  • Scammers ask for investments promising high returns without risk.

  • Ponzi and pyramid schemes are examples of investment scams.

  • Be cautious if someone asks you to invest via a Coinme account.

  • What to Do If Scammed:

    • Seek assistance from local law enforcement.

4. Employment Scams:

  • Scammers impersonate recruiters with fake job offers.

  • They often target individuals who have posted their resumes online.

  • "Job offers" may include convincing offer letters and requests for confidential personal information.

  • Coinme only posts jobs at www.coinme.com/careers.

  • Legitimate communications with Coinme recruiters will come from @coinme.com email addresses.

  • What to Do If Scammed:

    • Report via our chat in the bottom right.

5. Romance Scams:

  • Criminals adopt fake online identities to manipulate victims emotionally.

  • Scammers may propose marriage and make plans to meet in person, which never happens.

  • Be careful about what you post online, as scammers can use details from social media and dating sites to target you.

  • Research the person’s photo and profile using online searches.

  • Go slowly, ask lots of questions, and be wary of quick requests to leave dating sites.

  • What to Do If Scammed:

    • Seek assistance from local law enforcement.

6. Money Mule Scams:

  • A money mule scam involves the use of a third party to transfer money or goods on behalf of scammers.

  • Scammers target individuals looking for work-from-home opportunities.

  • Be cautious of job offers that ask you to transfer money.

  • Say no to requests that involve moving funds, as you may be helping scammers move stolen money.

  • What to Do If Scammed:

    • Stop transferring funds if you suspect a scam.

    • Notify Coinme and financial institutions.

    • Report to the FTC at ftc.gov/complaint.

7. Inheritance Scams:

  • These scams promise false inheritances and may require upfront fees.

  • Avoid paying and providing bank account information.

  • What to Do If Scammed:

    • Seek assistance from local law enforcement.

8. Tax Scams:

  • The IRS communicates through mail and won't demand immediate payment in cryptocurrency.

  • Specific ways to pay taxes are outlined on the IRS website.

  • What to Do If Scammed:

9. Utility Bill Scams:

  • Scammers claiming to be utility companies demand immediate cryptocurrency payments.

  • Scammers aim to scare you into paying before confirming the legitimacy of their demands.

  • What to Do If Scammed:

    • Report to utility companies.


Remember, vigilance is key to staying safe in the cryptocurrency space. If you encounter a scam not listed above, take immediate action to protect yourself and seek assistance from local law enforcement.

For additional support or questions, reach out via our chat!

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