Detecting and Preventing Crypto Scams
Anyone who has ventured into the world of cryptocurrency knows it has its fair share of bad actors. Armed with a combination of technical expertise and financial savvy, these scammers have developed increasingly sophisticated and effective methods to exploit unsuspecting users. They prey on the complexity of the crypto market, exploiting ignorance of end users and FOMO, with promises of quick returns, giveaways, and lucrative investments. As the crypto space grows, so does the need for robust defenses against these increasingly sophisticated scams.
Common Crypto Scams
Some of the most common crypto scams include investment schemes that offer too-good-to-be-true returns, fraudulent initial coin offerings (ICOs), and phishing attacks that imitate legitimate digital wallets or exchanges. Scammers often use fake social media profiles to promote fake giveaways and airdrops, enticing users to share sensitive information like private keys or wallet access. Perhaps most insidious are “rugpulls,” where developers create hype around a new cryptocurrency or token, only to abandon the project once it attracts significant investment, leaving users with nothing.
Detection Methods for Crypto Scams
For brands operating in the crypto industry, protecting customers from these threats is paramount. Detecting crypto scams requires a combination of sophisticated systems focusing on specific red flags and behaviors associated with crypto scams, offering a multi-layered approach to identifying and taking down these threats.
Keyword detection, while old, is still central to the discovery methods used to finds scam websites and profiles. By scanning for common terms linked to scams—such as “digital wallet access,” “rugpull,” “fake giveaways,” “airdrop,” and “dubious ICOs”— discovery tools can identify websites or social media posts that may be involved in fraudulent activities. In addition to keyword monitoring, brand-specific triggers can flag potential scams that misuse legitimate crypto brands or services to mislead users..
Domain name monitoring remains a highly effective method for detecting phishing scams. Many of these scams use domain names that closely mimic legitimate cryptocurrency websites, aiming to deceive users. Unphish, for example, excels at identifying these lookalike domains—whether identical or confusingly similar—and conducts content checks for brand names or keywords that trigger a threat score, ensuring early detection of fraudulent activity.
Social media monitoring is also effective in detecting fraudulent activity on platforms where scams often gain traction. Scammers regularly impersonate crypto influencers or platforms to promote fake giveaways or fraudulent ICOs, but they are fairly easy to pick up with different listening tools. We also recommend joining some of the private groups on FB, Telegram and Discord as they often provide treasure troves of intelligence on up and coming scams.
Threat Feed Reviews, which cross-checks flagged URLs and domains with known phishing sites and malicious actors can also help to quickly identify dodgy sites. This real-time intelligence allows tools like Unphish to match suspected scams with verified threat data, ensuring greater accuracy and fewer false positives.
Whitelist and cross check Finally, it’s important that all identified results are cross-referenced with a whitelist of legitimate cryptocurrency platforms. This extra step prevents legitimate services from being mistakenly flagged, maintaining the integrity of the detection process.
For brands, partnering with Unphish offers a significant advantage. Not only can they protect their customers from being scammed, but they can also take swift action to take down fraudulent websites and social media profiles impersonating their business. Through its streamlined takedown process, Unphish empowers brands to shut down threats before they cause widespread harm.
How Unphish can help with Crypto Brand Protection
Brands can also work with Unphish to set up custom alerts and ensure their own services are added to the verified whitelist, helping the system differentiate between legitimate and fraudulent activities more effectively. With platforms like Unphish, brands have powerful tools to fight back. By leveraging advanced detection systems, domain name monitoring, and real-time threat intelligence, Unphish helps crypto brands safeguard their reputation and keep users safe from malicious actors. For those navigating the complex and often perilous world of cryptocurrency, Unphish is a key ally in the fight against fraud.
About brandsec
brandsec is a team of highly experienced domain name management and online brand protection experts. We provide corporate domain name management and brand enforcement services, helping brands eliminate phishing platforms across the internet. Supporting some of the largest brands in the region, we offer innovative solutions to combat threats across multiple industries.
