Beware of crypto scams during the new bitcoin bull market.

• The surge in the price of bitcoin will prompt investors to act quickly, but scammers will exploit this sense of urgency to defraud them, according to the Identity Theft Resource Center.
• Nearly half of the total fraud losses reported last year were due to cryptocurrency scams, with estimated losses exceeding $5.6 billion, according to the FBI's Internet Crime Complaint Center.
• Be cautious of promotional emails and text messages from unknown companies, unauthorized use of famous figures in solicitations, claims of account compromise, and any deal that seems too good to be true, including promises of exceptional returns.

Beware, consumers: Cybercriminals are circling the wagons with over $90,000 in solid funds this month.

"Scammers thrive on external events, confusion, and urgency to steal money, as Eva Velasquez, president and CEO of the Identity Theft Resource Center, stated."

The problem is intensified because trustworthy sources are openly discussing legal ways to earn money with bitcoin, and the advancements in AI technology make scams appear more authentic, even to experienced investors and professionals in the industry.

Nearly half of the total fraud losses reported last year were due to cryptocurrency fraud, with over 69,000 complaints filed with the Federal Bureau of Investigation's Internet Crime Complaint Center and losses estimated at more than $5.6 billion.

To avoid the latest crypto scams, it is important to recognize them.

'Elon Musk is not going to double your money'

Fake bonuses, fraudulent coin promotions, phishing emails or texts, Ponzi and pyramid schemes, and "Pig butchering" scams are some of the prevalent scams in the crypto world today.

Scammers have been using the names of well-known individuals like Elon Musk to promote fake cryptocurrency opportunities. These scams often involve broadcasting fake videos and livestreams, leading investors to believe that the individual is endorsing specific cryptocurrency opportunities. In one such scam, thieves attempted to lure investors to scan a QR code before the "livestream" ended, promising to double the amount of cryptocurrency they deposited, according to a report by Engadget.

According to Merrick Theobald, vice president of marketing at BitPay, Elon Musk will not guarantee a doubling of your investment if you send him cryptocurrency.

With Musk's increasing prominence in President-elect Trump's orbit and his appointment as co-leader of the proposed Department of Government Efficiency, these types of scams are likely to proliferate. Additionally, the Trump administration is expected to serve as a tailwind for crypto, with pro-crypto legislation expected to be one of the first legislative efforts taken up in a new Congress.

Coinbase warns scammers will prey on your fear

Fraudsters also use fear to ensnare victims.

Cyber thieves are sending texts claiming that crypto owners' accounts have been compromised, and if the user responds, scammers try to obtain the seed phrase to empty the account, said Jeff Lunglhofer, Coinbase's chief information security officer. People are falling for this scam because it appears legitimate and the scammers convince them their assets are at risk.

If you receive a message or email stating that there is an issue with your crypto account, refrain from responding or clicking on any links. Instead, immediately visit your provider's website or call the phone number associated with the provider to investigate your account, advised Theobald.

Be skeptical of one-time promotional offers

Scammers often use fake ads and emails to promote one-time crypto investment opportunities, which may appear to be legitimate offers from well-known companies. These scams can trick people into giving away their money, said Howard Greenberg, president of The American Blockchain and Cryptocurrency Association.

Crypto owners are unknowingly entering their credentials on fraudulent websites, leaving them vulnerable to losing their money. Greenberg stated that once users realize they have signed up for a fake site, it is too late to dispute the transaction.

To avoid falling for scams, Greenberg recommends investors bookmark the websites of legitimate crypto providers and only purchase crypto on reputable exchanges such as Coinbase and Gemini.

How families get defrauded

Crypto scams continue to trick people despite the adage, "If it sounds too good to be true, it probably is." The warning signs are often missed, such as offers that seem too good to be true, pressure tactics, or unrealistic promises for returns. To avoid falling victim to these scams, it's important to do some research and due diligence, according to industry professionals.

Recently, Yaya Fanusie, the director of policy for anti-money laundering and cyber risk at the Crypto Council for Innovation, discovered that a family member had been defrauded by a crypto scammer. The scammer's company, founded by a well-known mathematician, promised a guaranteed investment return of 150%. Fanusie investigated the matter and found that the mathematician had only a few dozen followers on LinkedIn. Fanusie was also suspicious due to the high investment guarantee and because the relative was being asked to communicate with the company on WhatsApp, which is end-to-end encrypted and offers scammers extra protection.

Velasquez advised caution when dealing with organizations that only accept cryptocurrency as payment, stating that he would be very wary of any transaction where cryptocurrency is the only payment option.

Do detailed research on new tokens and cryptocurrency companies

Fanusie advises potential investors to research a company's background on the internet, including its registration date and location. He also recommends checking Fincen's website to determine if the provider is regulated as a money service business. If a company claims to be an investment company, it's important to verify its registration with the SEC.

"You shouldn't believe everything you hear," he stated.

Before investing in a digital coin, it is crucial to verify its legitimacy. If the token is not listed on a reputable site, it may be fraudulent or obscure, increasing the risk. Price-tracking sites like CoinGecko or CoinMarketCap can help determine a token's legitimacy.

Fanusie stated that verifying things often reveals that they are not as they appear.