June 27, 2023
5 min read

Crypto Scam Awareness: Stay One Step Ahead

CryptoSpend Support


At CryptoSpend, we take scam prevention and user protection seriously. Unfortunately, there has been an increase in scams within the crypto space and it’s always important to stay alert. For example, Australians lost $205mil to investment scams in 2022. It is incredibly difficult to prevent every single scam, but we will be doing our best to help prevent as many as possible.

We'll be keeping this article up to date with the freshest scam news, so make sure to swing by regularly! If you ever find yourself in a sticky scam situation or suspect you might be getting scammed, please don't hesitate to reach out to our 24/7 live chat support team.

Key Points

What to look out for:

  • Unexpected requests for personal or financial information through email, phone calls, or messages.
  • If an investment platform, mentor, account manager or similar, asks you to lie to us (CryptoSpend) at any point in time for whatever reason, then they are most definitely scammers that are trying to take advantage of you.
  • High-pressure tactics that create a sense of urgency or fear, urging you to act quickly.
  • Suspicious emails or messages containing spelling or grammatical errors, unusual sender addresses, or unverified links.
  • Offers that seem too good to be true, promising quick and guaranteed returns or prizes.
  • Requests for upfront payments, fees, or investments before receiving a product, service, or promised funds.
  • Unsolicited investment opportunities or endorsements from unknown sources, especially if they involve celebrities.

What to do if you've been scammed:

  • Stay calm and gather all relevant information, including transaction details, messages, and any other evidence.
  • Get in touch with our support team and let them know what's happened. Report the scam to the appropriate authorities, such as local law enforcement, your country's fraud reporting agency, or relevant online platforms.
  • Contact your bank or financial institution to report the incident and take necessary steps to secure your accounts.
  • Change passwords and enable two-factor authentication on your online accounts to enhance security.
  • Warn others by sharing your experience on reputable scam reporting websites or through social media to raise awareness.
  • Be cautious of potential follow-up scams, as scammers may try to target you again using different tactics. Stay vigilant and verify all communication and requests before taking any action.

Remember, prevention is key. Stay informed, trust your instincts, and always double-check before sharing personal or financial information or engaging in any financial transactions.

Beware of Scam 1: The Fee Trap Before Withdrawing Your Funds

In this scam, things start off fishy as they show you some suspiciously inflated investment numbers. When you finally decide to cash out and withdraw your hard-earned funds, here comes the catch... they'll demand you to pay various fees or taxes before they supposedly release your money. But it doesn't end there, because even if you do pay up, they'll find a way to ask for more, claiming they made a mistake in their calculations or they'll simply start ghosting you altogether. Stay alert and keep your guard up against this sneaky scheme!

Beware of Scam 2: Investment Platform Requests You to 'Create a CryptoSpend Account' to Transfer Funds

CryptoSpend operates independently and doesn't team up with any other companies or platforms for investment purposes. So, if you ever receive a suspicious request to set up a CryptoSpend account solely for the purpose of transferring funds into some other investment platform, you better think twice. This is most likely a scam!

Beware of Scam 3: Fake Giveaways by CryptoSpend Impersonators on Social Media

The giveaway scams are not exclusive to us, there are many companies and personalities being impersonated and used for fake giveaways. Here's what happens: Impersonators create social media accounts posing as CryptoSpend and dangle the temptation of irresistible giveaways, usually a large amount of crypto that could be lifechanging for you. Their clever tactic? They sweet-talk you into depositing funds, luring you with promises of tripling your money or asking for a deposit to supposedly "verify" your wallet.

Do not fall for this! These are empty promises. These are nothing but fraudulent schemes designed to deceive you. Remember, we would never ask you for such deposits, promising to increase your investment, or engage in such suspicious activities. So stay vigilant and steer clear of these imposter giveaways.

Beware of Scam 4: Fake Celebrity Endorsements of Investment Opportunities

Here's what happens: You come across an enticing ad on social media or elsewhere on the internet, featuring a snapshot of a celebrity (think Gina Rinehart, David Koch, Tracy Grimshaw, or even Elon Musk) promoting a seemingly lucrative investment opportunity. But here's the catch—the celebrity's image is shamelessly exploited without their consent. The photo is used without their permissions.

Next, you're instructed to leave your contact details and then you're swiftly connected to an investment advisor, account manager, broker, or someone of the like. They then persuade you to make payments to an investment platform. Initially, you may witness a skyrocketing surge in the value of your so-called "investment." However, when the time comes to withdraw your hard-earned funds, things take a turn for the worst. They demand multiple fees or worse, they abruptly cut off all communication with you, leaving you with little to no chance of recovering your funds.

Don't fall for this! Stay vigilant and remember, genuine investment opportunities don't rely on fake celebrity endorsements. Protect yourself from financial harm and steer clear of these fraudulent traps.

Beware of Scam 5: The 'Error' Email Scam

Imagine this: you check your inbox and stumble upon an email that claims to alert you about a grave 'error.' The scammer behind this scheme strategically employs a barrage of lengthy words and technical jargon, hoping to baffle and confuse non-technical people. Panic sets in as they cunningly insist that transferring funds is the only solution to resolve this alleged issue.

Don't let the panic cloud your judgment! Stay sharp and don't fall for their manipulative tactics. Remember, genuine organizations won't employ such deceptive strategies. Keep your guard up and protect yourself from these scammers who prey on your fears. Don't let them take advantage of you or your hard-earned money!

Thanks for reading and increasing your awareness of scams. Stay tuned for future updates as we continue to provide more valuable scam information to keep you well-informed and protected.

Again, stay vigilant CryptoSpenders! If you have any questions, concerns, or if you feel like you may be getting scammed, then please reach out to our 24/7 live chat support team. They'll investigate further and help you out as much as possible!

**All information in this article is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by CryptoSpend to invest, buy, or sell any coins, tokens, or other crypto assets. Any descriptions of CryptoSpend products or features are merely for illustrative purposes. Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. It is essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.

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On 17 April 2024, Cryptospend Pty Ltd commenced operating under the name of “Wayex”. This is a change in the business name of Cryptospend Pty Ltd and the entity remains the same. References to “Cryptospend” in the Product Disclosure Statement dated 18 October 2023 have been updated to “Wayex”.