Crypto scam

Investing can be a great way to build wealth, but scammers are always looking for ways to exploit people's financial aspirations. With the rise of cryptocurrencies, forex trading, and investment platforms, fraudulent schemes have also increased. In this blog, we’ll discuss some of the most common financial and investment scams, how they work, and how you can protect yourself from falling victim.

Mohit Tejwani

3/31/20252 min read

1. Crypto Investment Scams

Cryptocurrency has become a lucrative market, but it has also attracted scammers who take advantage of people's desire to make quick profits. Fake investment platforms promise high returns on Bitcoin, Ethereum, or new cryptocurrencies, only to steal deposits and disappear.

How Crypto Scams Work:

Fraudulent websites claim to offer "guaranteed" high returns on crypto investments.
Scammers impersonate successful investors on social media, encouraging people to invest.
Ponzi-style crypto schemes pay old investors with money from new victims.
Fake apps and websites mimic real crypto exchanges but steal funds when users deposit.

How to Stay Safe:

Always research before investing in any crypto platform.
Avoid schemes that promise guaranteed high returns with little or no risk.
Use well-known and regulated crypto exchanges.
Never share your private keys or wallet credentials with anyone.

2. Forex Trading Scams

Forex trading (foreign exchange trading) is a legitimate industry, but scammers have created fake trading platforms and "get rich quick" schemes to defraud investors.

How Forex Scams Work:

Scammers pose as expert traders and promise huge profits with minimal investment.
Fake trading platforms show manipulated gains to convince users to invest more.
Victims are pressured to deposit more money but cannot withdraw their earnings.
Some schemes offer "automated trading bots" that claim to generate passive income but are completely fake.

How to Stay Safe:

Verify that the forex platform is regulated by financial authorities (e.g., SEC, FCA, or CFTC).
Be skeptical of unsolicited investment advice from strangers.
Avoid platforms that do not allow withdrawals or delay payments.
Never invest in forex schemes that promise "guaranteed profits."

3. Ponzi & Pyramid Schemes

Ponzi and pyramid schemes are age-old financial scams that lure investors with promises of high returns. These schemes rely on new investors' money to pay old investors, collapsing when recruitment slows down.

How Ponzi & Pyramid Schemes Work:

Early investors are paid using funds from new investors instead of actual profits.
Investors are encouraged to recruit others to keep the scheme running.
The system collapses when new people stop joining, leaving most investors with losses.
Some pyramid schemes disguise themselves as multi-level marketing (MLM) programs but require heavy upfront investments with little to no real products.

How to Stay Safe:

Be cautious of investment opportunities that require recruiting new investors.
Research any company offering unusually high and consistent returns.
Avoid programs where commissions come mainly from recruitment rather than actual sales or investments.
If something seems too good to be true, it probably is.