The allure of quick wealth in cryptocurrency and online investments has created a breeding ground for sophisticated scams. Understanding their tactics is the best way to protect your money.

1. The Fake Investment Platform

Scammers create professional-looking websites or mobile apps that mimic legitimate crypto exchanges or investment platforms. They lure you in with promises of guaranteed, high returns. You deposit a small amount and see impressive "profits" in your account. Encouraged, you invest more. When you try to withdraw your money, you find you can't—it's all gone. The platform was a sham from the start.

Red Flag: Guarantees of high returns with zero risk. All real investments carry risk.

2. "Pig Butchering" Scams

This is a long-con that combines a romance or friendship scam with investment fraud. The scammer (the "butcher") "fattens up" the victim (the "pig") by building a strong relationship over time. They then casually mention their success in crypto trading and offer to teach the victim. They guide them to a fraudulent platform (see above) and convince them to invest increasingly large sums of money before disappearing.

3. Ponzi and Pyramid Schemes

These classic schemes are now common in the crypto world. A "new" crypto project or investment fund promises high returns to early investors. These returns are simply paid out using the money from new investors. The scheme relies on a constant flow of new money and collapses when recruitment slows down, leaving most investors with nothing.

Red Flag: An emphasis on recruiting new members to earn returns.