Staying away from fake currency traps: a must-have scam prevention guide for digital currency invest
Last updated
Last updated
As cryptocurrencies are rapidly gaining popularity around the world, various types of scams related to “fake coins” are becoming more and more common. Taking advantage of people's lack of understanding of digital currencies, unscrupulous elements carefully create fake tokens with almost the same appearance as mainstream coins, and carry out a variety of scams to cheat users out of their funds. Especially with the prevalence of decentralized exchanges and wallet applications, identifying genuine and fake digital assets has become a must for every investor.
The openness and technical threshold of cryptocurrencies provide a natural breeding ground for scammers. Anyone can deploy a smart contract on the blockchain, create a “new coin” and name it something like “U SDT” or “USTD” to mislead investors. mislead investors. Worse, these fake coins are often promoted through WeChat groups, Telegram, phishing emails, free airdrops, and other channels, supplemented by the lure of high returns, making it very easy for newcomers to fall into the trap.
According to statistics, global losses due to fake tokens exceeded $2 billion in 2023, with fake USTD-related fraud cases accounting for nearly 30% of the total, making it one of the most victimized categories.
Fake smart contracts masquerading as USTD transactions
Scammers deploy a fake contract that replicates the USTD logo, symbols, and uses a similar name. Within decentralized exchanges, it is virtually indistinguishable from a real USTD, and many users are easily fooled without verifying the address of the contract. For example, fake coins may use USTD., ustd, u-STD, and other symbols to make investors believe that they are purchasing a real USTD, but the address of the smart contract for their tokens is completely different.
Take USDT on the TRON network as an example, in the TRONSCAN, you can check the official USDT certification mark, contract address TR7NHqjeKQxGTCi8q8ZY4pL8otSzgjLj6t, the total number of transactions and other information.
Fake USDT, no official certification mark, contract address TDZxLbQwtPRTrtK89HrBTt6yaeg9Q1vAvL is completely inconsistent with the official one, and the total number of transactions is far from the official one.
The “sure thing” investment disk
In some scams, fraudsters promote the so-called “official stablecoin” in the name of CoinSafe, Firecoin and other large platforms, falsely claiming that participation in the project can earn exchange differences or mining pool dividends. In practice, investors are often induced to exchange their assets for worthless fake coins, and ultimately lose all their money.
Fake exchanges or fake wallet apps
In addition to the fake coins themselves, some scams even build complete “phishing platforms” or simulated apps to lure users to top up or authorize them to steal assets. As transactions are decentralized and irreversible, such losses are often irreversible.
Verification of contractual address
Find and verify the contractual address of the tokens in authoritative sources such as CoinMarketCap, CoinGecko or the project's official website. Do not trust links provided by social groups or unknown websites.
Check Token Activity and Volume
Use a blockchain browser (Tronscan, etc.) to see the token's circulation, holder distribution, and trading activity. Counterfeit tokens tend to have low transaction volumes and centralized addresses.
Use secure wallets and platforms
Choose a mainstream wallet (e.g. MetaMask, Trust Wallet, imToken) and avoid unverified exchanges. Legitimate platforms usually label tokens as certified or not.
Be wary of the lure of “high-yield” programs
Be alert when a program promises returns beyond the normal range. Check out more information and make more comparisons to avoid falling into a scam.
Regularly update equipment and security settings
Keeping the version of your wallet and trading platform up-to-date and turning on double authentication (2FA) can effectively prevent account theft.
Use of security tools to assist in judgment
Platforms such as Token Sniffer and De.Fi offer smart contract security assessments for tokens, suitable for novice users to quickly identify risks.
As technology evolves, so do the tactics of counterfeit coin scams. Not only USDT, other mainstream coins such as ETH, BTC and a variety of emerging tokens will also become the target of counterfeiting. From impersonating tokens to imitating mainstream coin trading platforms, criminals are becoming more and more adept at creating “false impressions”. This puts higher requirements on regulation, and at the same time forces investors to improve their own quality.
In the future, technologies such as on-chain data analysis, contract auditing tools, and blacklist sharing mechanisms will further strengthen the market's security defenses. But until then, each user's own vigilance remains the most critical line of defense.
Although the crypto market is full of opportunities, there are also hidden risks. In a high-yield and high-risk environment, any “deal that looks too good to be true” should be viewed with caution. Acquiring the knowledge to recognize fake coins and keeping a cool head are the basic training for every investor in the digital age. Remember: the first step in investing is not how to make a profit, but how not to get ripped off.
