From Pump-and-Dump to Ponzi Schemes: Telegram Crypto Scams Explained

Telegram Crypto Scams are becoming increasingly prevalent in the digital asset space. These scams use the Telegram messaging platform to entice investors with promises of quick profits and exclusive investment opportunities. Although the application doesn’t allow third-party interference and is a favorite amongst traders, scams are still rampant.

From Pump-and-Dump schemes to Ponzi schemes, scammers are deploying multiple unique tactics to loot innocuous investors. Tactics like creating fake celebrity endorsements and falsifying trading volumes to lure in unsuspecting victims are now becoming more prevalent on messaging platforms. As crypto investors, be vigilant and educated on recognizing and avoiding these scams, as they can result in significant financial losses. 

This article covers an overview of crypto Telegram scams and how they work as well as provides actionable tips on protecting yourself and your assets. By learning about these scams, you can stay safe and informed about investing in digital assets.

Why Crypto Traders Prefer Telegram

Crypto trading has become a popular investment for many people. As the asset class portfolio becomes popular, its social media reach rises too. 

Various social media platforms are now intentionally establishing the crypto niche. However, creating crypto communities and keeping up can be tiring. There’s so much breach of information and data privacy with third-party companies actively buying this information. Fortunately, one platform stands out amid all this chaos – Telegram.

Telegram is a secure social media platform that encourages community building. Crypto traders on social media like Telegram create channels and groups to promote trade signals and financial/market analyses. The platform gives them the leverage to join other channels effortlessly.

Telegram is a favorite among crypto traders because it offers several useful features for trading and discussing cryptocurrency. Crypto traders need a secure place to have their forums and conversations; interestingly, Telegram remains at the top of their list of go-to platforms. 

Some of the key features that make Telegram popular among traders include

• Large communities: Telegram has large communities of traders and investors who share information and analysis on different cryptocurrencies.

• Encryption: Telegram offers end-to-end encryption, which makes it a secure platform for discussing trades and sharing sensitive information.

• Speed: Telegram is fast and responsive, which is important for traders who need to make quick decisions based on real-time information.

• Customizability: Telegram allows users to create custom bots and channels, which can automate trading and receive real-time market updates.

• Availability of trading bot: Telegram has many trading bots. This can integrate with the exchange account to automate the trading process.

All these reasons make Telegram a popular platform among crypto traders. Furthermore, the platform is easy to install and use. 

Crypto scams on Telegram

Despite Telegram’s sophistication, the platform faces scam threats. There are people whose sole aim is to defraud others. These scams can be discouraging – especially to new traders as many give up on trading after losing their hard-earned money. 

The nature of these scams differs from one another. They can happen inside a Telegram group that is already active, a personal message that takes you to a third-party website, or a trap asking you to invest in certain tokens for high returns in the short term.

People who are not very familiar with the crypto industry are the major victims of these scams. If you know some of the common scams on Telegram, you will be able to avoid them. Let’s get started:

Fake Telegram Groups

In Telegram, creating fake groups is one of the most dangerous and prominent crypto scams. It is so sophisticated that identifying an original crypto group may become increasingly difficult.

In this, a copycat group is created to mimic a popular Telegram group closely. Most times, the difference is so insignificant that you will easily walk right into a trap. These people often invite members from the original group to theirs, which makes it even harder to spot the difference.

The group typically contains pinned messages, conversations, and admin/moderator names similar to the original platform. However, one of their many telltale red flags is that there’s always a message aimed at scamming you.

For example, when you join the group, you will be able to buy a token at a ridiculously discounted price or a flash sale of pre-launch projects. Another way you can spot a fake crypto group is by the number of members. Fake groups typically have lesser numbers in comparison to the original platform.

To avoid falling victim to this cryptocurrency scam, change the settings on Telegram. Go to settings, click “Group invite,” and change it to “My contacts only.”

That way, you won’t receive invites from unknown contacts. Additionally, only follow links from trusted and official sources. Ensure you cross-check links with other sources, so you don’t make an error.

The Copycat Admin

Another popular Telegram crypto scam is the copycat admin. When a group member asks questions or requests support, the scammers send a direct message to the user. They pose as an admin or even a support staff from the group and feign interest in the query. Other times, they send a link and ask you to fill in your details to phish your data.

However, there is a glaring red flag with this as well. Their username is mostly an attempt to copy the original (e.g., B1nance instead of Binance). Other times, they have no username or use the @ symbol.

Don’t judge yourself harshly because these scammers are smart if you ever fall victim to this scam. They typically prey on inexperienced users more than regular ones. If you suspect that a fake admin has contacted you, copy their username.

One of the first signs that they are fake is that their username will be in their bios. Search for their username in the group and check if they have any posts there. If there are none, they are fake admins. Another way to navigate this is to check if they have an admin tag next to their name.

If you remain uncertain after this, anybody that asks for your private key, seed phrase, or personal information through a private message is hoping to scam you. Keep your personal information private; you can lose all you have worked for in a few minutes.

Pump and Dump Crypto Groups 

One of the oldest scams in the crypto industry is pump and dump by scammer groups. The fraudsters create a Telegram channel to manipulate the price of a cryptocurrency.

These kinds of groups hide behind trade signals. They come with the assurance of accurate predictions so that traders can take advantage of them and make large profits.

However, behind their mask is an elaborate scheme to make group members buy larger amounts of the coin. The people who end up benefiting from this pump are the admins. Once the price reaches a certain point, they pull out all their funds, which crashes the coin prices and leaves those who bought it at higher prices at a huge loss.

Many traders, especially newbies, are always looking for trading signals in the crypto market. Unfortunately, most scam pump groups project themselves as legit signal groups and claim to provide market analysis, insights, and insider information. Their offer may be too tempting to resist.

To avoid these Telegram crypto scams, check their performance history. How many people aside from the admins have made profits from their predictions? Are the pumps genuine? Or was it triggered by the group? 

If the group triggers pumps, it’s a sign that they don’t provide genuine insight – although there are trustworthy platforms that play the pump-and-dump game, and all their members benefit from the move.

A telltale red flag of this scam is that they emotionally blackmail you (e.g., you are missing a lot on your future if you fail to buy this coin) or create a sense of urgency. So whenever you feel FOMO due to the messages on a group, you are likely dealing with a scam.

Another way to avoid this scam is by doing your research (DYOR). Trade signals are impressive but only partially reliable. Only invest when you are sure of what you are getting into. 

It’s best to stay up-to-date with financial news, like what’s happening in the stock and foreign exchange market. Plus, learn how to study charts because it pays off in the long run, even if it’s daunting.

Ponzi schemes

Ponzi schemes are a type of crypto scam that has been reported on Telegram. These schemes promise high returns on investments in a short period, but they are using the investments of new members to pay off earlier investors. 

Ponzi schemes on Telegram often use tactics such as creating fake social proof, using fake celebrity endorsements, and promising unrealistic returns on investment. They may also offer referral bonuses to encourage users to bring in new members.

To avoid Fraudulent practices on Telegram, it’s critical to remain cautious and carefully confirm the legitimacy of every message or offer you receive. Some ways to protect yourself are

• Research the legitimacy of any investment opportunity or trading platform before giving away your money or personal information.
• Don’t give your private key or seed phrase to anyone.
• Do not click on any links in messages you receive from unknown or suspicious sources.

Phishing Scams

The purpose of phishing attacks is to trick users into divulging their personal information or funds. These attacks can take many forms, but on Telegram, they often involve sending messages from a legitimate source (such as a trading platform or exchange) to trick users into giving away their personal information or funds. Some examples of major phishing attacks on Telegram include

• In 2020, a group of hackers used phishing attacks on Telegram to steal more than $2 million worth of cryptocurrency from users. They created fake versions of popular cryptocurrency exchanges and wallets and then sent users messages asking them to log in and enter their private keys.

• In 2019, a phishing scam targeting users of the Telegram messenger service was discovered. Hackers send messages to users, asking them to click on a link to claim a reward. The link led to a fake website like the Telegram login page, where users were prompted to enter their personal information and private key.

• In 2020, a phishing campaign targeted Telegram users with fake airdrops, prompting users to provide their personal information and seed phrases.

Whenever you receive a message or offer on Telegram, verify its authenticity to prevent falling victim to phishing attacks. 

Telegram Bot Attacks

Telegram bot attacks refer to the malicious use of Telegram bots to gain unauthorized access to a user’s account or steal personal information. 

Telegram bots are automated programs that perform various tasks, such as sending messages, creating groups, and handling payments. However, they can also use them to spread malware, engage in other malicious activity, or rob personal information.

Some examples of major Telegram bot attacks that have occurred in the past include the following:

• Crypto-mining bots are used to mine cryptocurrency on a user’s device without their knowledge or consent. This can slow down the device and cause it to overheat.

• Scam bots: These bots impersonate legitimate organizations or individuals to trick users into giving away their personal information or funds. They can be used to conduct phishing attacks or to spread malware.

• Spam bots: These bots are used to send unsolicited messages to users, which can be used to spread malware or promote scams or unwanted products.

• Ransomware bots encrypt users’ files and demand a ransom payment to unlock them.

Only rely on some crypto trading bots. Find out genuine crypto trading bots. These attacks are very difficult to identify. However, the minimum precaution you can take to stay away from Bot attacks is as follows

• Be careful while downloading files from untrusted sources or clicking on links.
• Do not give away personal information or funds to unknown or untrusted bots.
• Using anti-virus and anti-malware software.
• Only interacting with bots from trusted and reputable sources.
• Keeping your device updated with the latest software updates and security patches.

Always be cautious when dealing with any Telegram bot, and only give away your personal information or fund information after verifying the legitimacy of the bot first.

Bitcoin scams on Telegram

Bitcoin giveaway scams, also known as “free bitcoin” scams, are a kind of deception in which scammers promise to give away free bitcoin or other cryptocurrencies. Telegram users get these offers in exchange for sending a fraction of bitcoin or other cryptocurrencies to a specified address. 

These scams often use social engineering tactics to trick users into believing they are genuine giveaways. One example of a major bitcoin giveaway scam that has occurred in the past is in 2018.

A group of scammers used Telegram to promote a fake giveaway of 10,000 bitcoin. They asked users to send a small amount of bitcoin to a specified address to participate in the giveaway, but no bitcoins were ever returned to the users.

Bitcoin is not the only victim of these types of scams. Scammers also list many other altcoins as a part of free giveaways. What you can do to stay away from Bitcoin scams is to first verify the authenticity of the giveaway before sending any cryptocurrency to a specified address.

Fake ICO offering scams

Fake ICO offering scams are a type of off-platform telegram scam. Off-platform Telegram crypto scams refer to scams that are conducted using Telegram but that take place outside of the Telegram platform itself. These scams often involve tricking users into sending money or personal information to a scammer through a third-party website or service.

How to stay away from Crypto Scams?

Scams of this type require that you stay alert and always confirm any message or offer before taking it. Some ways to protect yourself include

• Researching the legitimacy of any investment opportunity or trading platform before giving away your money or personal information
• Not giving away your private key or seed phrase to anyone
• Using two-factor authentication whenever possible
• You are not clicking on any links in messages you receive from unknown or suspicious sources.

It’s also critical to be aware of the warning signs of cryptocurrency fraud. Stay away from unrealistic promises of high returns, unsolicited offers, pressure to invest quickly, and lack of transparency. Be sure to always use caution when dealing with any cryptocurrency investment or trading opportunity.

In Summary

Telegram crypto scams are annoying for various reasons, including that they are basic but also hard to spot. People have lost their investment portfolios to scams like these, so it’s only wise to learn how to avoid them. This article highlights Telegram’s three most popular cryptocurrency scams alongside practical ways to prevent them. It’s high time to wage war against the crypto scam.

You can connect with Blockwiz to create a thriving Telegram group and grow your community. Blockwiz Telegram community expert will assist you in creating a genuine group and expanding the community.