I just reviewed recent crypto scams and feel it’s important to warn everyone about these schemes. What does scam mean? Simply put, it refers to fraudulent actions aimed at stealing money or personal information. In the crypto world, bad actors are becoming increasingly sophisticated.

In fact, according to Chainalysis, although damages from scams in 2023 have decreased by 65% compared to the previous year, they still amount to billions of USD. This figure proves that scams remain a major threat.

What are the most common forms today? Phishing scams are still the king—impostors mimicking emails, websites, or messages from reputable exchanges to steal information. Then there’s pump and dump, where developers manipulate prices, create FOMO, and sell off when prices are high. OTC scams are also quite common, where someone transfers money first and then loses everything.

But what exactly does scam mean in each case? Some projects fake admin or staff to steal private keys. Others create fake tokens in the DeFi space to trick you into buying them. There are hacks of major project accounts on X or Discord, then spreading scam links. I’ve also seen fake wallet apps or exchange platforms on app stores.

Additionally, there are Ponzi schemes, fake ICOs/IEOs, rug pulls—where dev teams suddenly withdraw all liquidity and disappear. What does scam mean when looking at famous cases? Confio in 2017 raised $375,000 via ICO and then performed an exit scam, causing the token to drop from $0.6 to $0.1 within 2 hours. Centra raised $32 million, backed by celebrities, but its founders were arrested in April 2018. LayerZero’s Discord was hacked, the CEO’s account was compromised, and fake links were shared to receive ZRO tokens. Bitconnect used a multi-level marketing model, reached a market cap of $2 billion, then collapsed to $40 million in less than 24 hours.

How to recognize scams? If a project promises unrealistically high profits without a solid basis, that’s a warning sign. Lack of clear information about the team, business model, or investors should raise suspicion. Projects that only run marketing without a real product are also suspicious. No security audit? No positive community feedback? Using domain names or logos similar to major projects? These are red flags.

I want to share some ways to avoid scams. First, always research thoroughly before investing—read the whitepaper, check the team, understand the operating model. Verify project info on CoinMarketCap, CoinGecko, or sites like ScamAdviser, CryptoScamDB. Never share private keys or seed phrases with anyone. Use well-known, security-verified wallets, and avoid unknown or untrusted wallets.

Enable anti-phishing codes and 2FA on exchanges. After interacting with DApps, revoke their permissions, even for popular ones like Uniswap or Balancer, as they can still have vulnerabilities. Double-check domain names before visiting, avoid clicking on unknown links from unfamiliar sources. Diversify your investments across multiple projects instead of putting everything into one.

What does scam mean legally? Fraudulent crypto activities can be prosecuted under the laws of most countries, including Vietnam. However, recovering funds is usually very difficult unless the money was recently transferred to a centralized exchange—then contact the exchange immediately to freeze the funds.

I believe that equipping yourself with knowledge to recognize and avoid scams is extremely important. Bad actors will never stop, so we must stay vigilant. If you have any suspicions, seek support from the community or professionals. Wishing everyone safety on your crypto journey!