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Common Scams in the Crypto Industry

As with any industry, there are a number of scams and unfortunately no lack of individuals who want to take advantage of someone in some way. While each scam is different, ultimately, they do have a couple of things in common - a convincing story, and an even more convincing representative.

There are many common red flags to look for, and here are a few. If any of the instances below sound familiar to you, then you might want to reconsider reviewing your relationship with whichever service/ individual that you’re doing business with.

Basic tips and articles with further information:

  • Do not invest with unregulated and unregistered companies. Always make sure you fully understand your investment, have a clear exit strategy, and don't invest in an ICO if you are less experienced with Cryptocurrencies. Investment scams
  • Do not send money to or invest with someone you met on a social media ( Instagram, Facebook, Twitter, etc), dating platform, or messaging service (Whatsapp, Telegram, Google hangouts, etc). Romance scams. Social media scams
  • Understand the industry and how mining works before sending funds. Mining scams
  • Purchase products from a legitimate merchant and have checked their customer reviews. Merchant scams
  • Know that Coinmama does not have brokers, account managers, miners, sales representatives or agents, mentors, Blockchain experts and the like. Coinmama employee impersonators
  • Do not give anyone remote access to your device, even if they claim to work for a company that you're familiar with. Tech support scams
  • Do not send funds of any kind to your employer or make purchases on their behalf. Job scams

Keep in mind:

  • When placing your orders with us, you should only send coins to your own wallet- we here at Coinmama do not generate or provide wallets, and when you log in to your Coinmama account, what you see is your purchase history with us, not a balance
  • Know that Coinmama does not hold, store, or invest in funds of any nature for our users.
  • Created your wallet by yourself and that only you can access it. If a wallet address was given to you by another individual or company, then that is not your wallet. For more information on how wallets work, click here.
  • Scam and fraud tactics are ever-evolving and not limited to the scenarios listed above but the signs are more or less the same.
If you believe that you may be the victim of a scam, or simply aren't sure, please contact our support team, we're here for you.


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