Inquiring Cryptocurrency Users: What Prominent Cryptocurrency Scams Have Emerged This Year?
In the ever-evolving world of cryptocurrency, understanding the potential risks and threats is crucial for navigating the industry successfully. In this article, we delve into the year 2025, exploring fresh industry data, fraud threats, and evolving regulations, as discussed by Anastasia Shvechkova, the Head of Business Development at Sumsub, in the latest instalment of their bi-weekly Q&A series.
The Q&A series, which will be published every other Thursday, aims to answer frequently asked questions about regulatory compliance, verification, automated solutions, and more. This week's discussion, led by Anastasia Shvechkova, focuses on common crypto fraud schemes that investors and users should be aware of.
- Phishing Scams: Fraudsters create fake websites or messages to steal users’ private keys or login credentials.
- Pump and Dump Schemes: Coordinated efforts to artificially inflate the price of a cryptocurrency before selling off at a profit, leaving other investors with losses.
- Ponzi and Pyramid Schemes: Fraudulent investment operations where returns are paid to earlier investors using the capital from new investors.
- Fake Initial Coin Offerings (ICOs): Scammers create fake projects to lure investors into sending money in exchange for worthless tokens.
- Impersonation Scams: Using fake profiles or accounts pretending to be legitimate crypto projects or influencers to trick users.
- Rug Pulls: Developers launch a project and then suddenly withdraw all funds, leaving investors with worthless tokens.
These schemes underscore the importance of strong KYC/AML processes and user education in mitigating risks in the crypto space.
The Q&A series will feature experts from legal, tech, and other fields, providing valuable insights and recommendations to guide strategy in the cryptocurrency industry. If you have questions you'd like to see answered in future sessions, feel free to submit them to Sumsub's Instagram and LinkedIn accounts.
Stay tuned for the next instalment of the Q&A series, where we explore more topics related to cryptocurrency and the industry's future.
Anastasia Shvechkova's Profile Link
This article is not an advertisement and does not provide specific details about the rising fraud threats or evolving regulations.
In the context of the Q&A series discussing common crypto fraud schemes, Anastasia Shvechkova, the Head of Business Development at Sumsub, emphasizes the importance of strong Know Your Customer (KYC) and Anti-Money Laundering (AML) processes and user education as key tools in mitigating risks in the cryptocurrency industry. Also, as technology advances, investing in cryptocurrency requires continuous vigilance to identify and steer clear of scams such as phishing, pump and dump schemes, Ponzi and Pyramid schemes, fake Initial Coin Offerings (ICOs), impersonation scams, and rug pulls.
