These schemes are a type of market manipulation where the value of a cryptocurrency is artificially inflated (or "pumped up") often through misleading statements or announcements, causing a rapid increase in price due to a rush of investors buying the cryptocurrency. Once the price is high, the fraudsters sell off their holdings (the "dump"), causing a drastic drop in price and massive losses for those who bought in during the "pump." This tactic is particularly prevalent in less-regulated markets, like cryptocurrencies.

With the rise of blockchain technology, many new cryptocurrencies have used Initial Coin Offerings (ICOs) as a way to raise funds. Scammers have taken advantage of this by setting up fake ICOs. They create a sleek website and a convincing whitepaper, promising high returns for investors who buy into the ICO. Once they've collected funds, they disappear, leaving investors with worthless tokens.

These types of schemes are not new but have found a home in the world of cryptocurrencies. In a Ponzi scheme, the operator promises high returns to investors. Initial returns are paid out using the capital of subsequent investors rather than profit earned through investment activity. Once the inflow of new investors slows, the scheme collapses. In a pyramid scheme, an individual or a company recruits investors by promising them high returns. The catch here is that these investors need to recruit more investors to keep the scheme going. Eventually, the scheme collapses when the pyramid becomes too big and the recruiter can no longer find more investors.

Scammers have created fake exchange platforms and wallets to steal cryptocurrencies. They lure users with features like competitive rates, free coins, or promises of high returns. Once the user deposits their cryptocurrencies, the scammers can take control and steal them.

These types of schemes are not new but have found a home in the world of cryptocurrencies. In a Ponzi scheme, the operator promises high returns to investors. Initial returns are paid out using the capital of subsequent investors rather than profit earned through investment activity. Once the inflow of new investors slows, the scheme collapses. In a pyramid scheme, an individual or a company recruits investors by promising them high returns. The catch here is that these investors need to recruit more investors to keep the scheme going. Eventually, the scheme collapses when the pyramid becomes too big and the recruiter can no longer find more investors.

Scammers have created fake exchange platforms and wallets to steal cryptocurrencies. They lure users with features like competitive rates, free coins, or promises of high returns. Once the user deposits their cryptocurrencies, the scammers can take control and steal them.

Some scammers use malware to gain access to the user's wallet by tricking them into clicking malicious links sent via email or social media. Once inside, they can steal the user's funds.

These involve a type of malware that encrypts the victim's files. The scammer then demands a ransom in cryptocurrency to decrypt them. Since cryptocurrencies are typically anonymous, tracking down the scammer can be impossible.