Crypto Giveaway Scam

Every crypto giveaway is nothing but another scam.

Introduction

A crypto giveaway scam is a type of scam in which the user is led to believe he won crypto in a giveaway. If the user falls for the scam and proceeds to withdraw the free giveaway crypto, he will be asked to send his real crypto in order to cover the transaction fees or to prove that he is not a robot. If the user sends his real crypto, he will lose all of the sent assets.

Typical crypto giveaway scam
Typical crypto giveaway scam

Scam type

Social engineering.

Purpose

The purpose of the crypto giveaway scam is to accumulate crypto from users looking into withdrawing crypto they allegedly won in a giveaway.

Attacker

Attackers are mostly divided into two groups:

  • The webmasters and developers who’s job is to build a website for the fake giveaway scam. The website looks and feels like a legit centralized crypto exchange. Users can register accounts and some parts of the site are fully functional.
  • The messaging app scammers, who scan crypto groups and contact random members, congratulating them on winning the crypto giveaway.

Victim

Victims of crypto giveaway scams are users interested in withdrawing free crypto into their wallets.

How does the crypto giveaway scam work?

For the attacker to succeed, the user has to take the following actions:

  • The user has to join a Telegram or Discord group associated with crypto. Attackers are continuously scanning crypto groups and targeting random members.
  • The victim gets a direct message from a person (attacker) who is not in the user’s contact list. The attacker claims that the user was randomly selected in a free crypto giveway hosted by a major crypto exchange company. The attacker provides a link to the giveaway, together with a promo code for withdrawing the giveaway crypto.
  • If the user follows the link, the user is forwarded to the attacker’s landing page (website). The landing page looks and feels like a legitimate cryptocurrency exchange. User can register an account and login. If the user registers the account, all of the registration information is hijacked by the attacker. The user becomes a victim of the scam. If the victim is using the same login details to access other crypto exchanges, the attacker can now access those exchanges as well.
  • Furthermore, if the victim enters the promo code given by the attacker, the victim will be sent fake crypto. If the victim tries to withdraw the fake crypto to its private wallet, the victim will be asked to send a small portion of crypto to cover the transfer fees or to prove that it is not a robot.
  • If the victim proceeds to send crypto to the website in order to cover the transaction fees, the transfered crypto assets will be taken away. The victim will end up holding fake crypto.

How to protect yourself?

The first step in protecting yourself from this type of scam is to remember that nothing is ever free. Why would a random stranger on the internet send free money to you? Would you ever go around and give your hard-earned money to people you never met?

For protection against these types of scams, do the following:

  • Always remember that if someone is contecting you with an offer to give you free money, they are trying to scam you. If it looks too good to be true – it probably is.
  • Enable maximum security on your Telegram and Discord. Inside the app settings you can disable calls from people who are not on your contact list.
  • Always use a different email and password to sign-up on new websites. Consider using a password management service.
  • Never send your crypto to people you don’t know.
  • Consider using a cold wallet for storing your crypto.
  • Consider investing in legit passive income projects.

Stay safe out there.

Written by Scam Buster

A cryptocurrency investor and a journalist by day, Scam Buster spends most of the daytime refreshing his portfolio and taking coffee breaks. By night, however, he sheds all pretense and takes to the shadowy URLs of the Internet, busting scammers wherever he goes.

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