Crypto theft is on the rise at an alarming rate. Thieves are making the most out of the Covid-19 crisis by scamming people through the dark web. Criminals use phishing, ransomware, and other types of fraudulent techniques to target and lure hardworking people away from their money.

Even with today's high tech, digital security measures, savvy and intelligent tech fraudsters find ways to scavenge their way around the marketplace illegally. Prevent yourself from being a target by taking precautionary measures. Stay informed by reading about the biggest scams to hit the cryptocurrency markets.

➀ The Chinese Wotoken $1.1 Billion Pyramid Scheme

The nefarious Wotoken grand pyramid scheme defrauded over 700,000 Chinese citizens. Unbelievably, this grand crypto theft was masterminded by only six individuals.  Four people have been sentenced to prison:

• Li Qibing
• Gao Yudong
• Tian Bo
• Wang Xiaoying

The Wotoken platform promised high returns for little effort using a purported algorithm trading bots system.  Investors received money from new investors in the Wotoken currency WOR as part of an unsuspecting Ponzi scheme. A pyramid scheme is an illegal financial system where investors pay to join a service and reap the profits from subsequent participants.

➁ Plustoken $6 Billion Ponzi Scheme

Another widespread crypto theft plague originating from China has been stopped thanks to diligent law enforcement officials. Plustoken promised investors high yield returns on the PLUS token digital currency. This pyramid scheme involved 109 people, including 27 criminal masterminds. Furthermore, six top individuals of the criminal organization are now held criminally accountable for their crimes that mostly affect Chinese and South Korean investors.

The fraudsters stole over 200,000 BTC, 26 million EOS, and approximately 789,000 ETH. After they collected the cryptocurrency, they ran off with the money leaving investors bewildered. Plustoken and investors' only communication after the theft was a short note that stated, "sorry we have run."

➂ Covid-19 Scare Techniques and Impersonation of Reputable Organizations

Criminals know no bounds, and we've seen their unscrupulous activities flourish during the current Covid-19 pandemic. Emails sent to unsuspecting individuals use the name of leading researchers in health, including The World Health Organization and The Red Cross. Thieves gather personal information and request payment for pandemic related services in cryptocurrency.

Virus tracking apps designed with spyware promise enhanced safety, but they have ransomware installed. The insidious app later demands payment in digital money to decrypt users' files. Dark web fraudsters market illicit Covid-19 tests and vaccines, and personal protective equipment.

➃ Decentralized Finance Unsecured Lending Crypto Theft

DeFi financial hackers take advantage of the recent rush to supply consumers with lending products outside of traditional banking systems. DeFi networks lack sophisticated customer verification methods and exact regulatory implementations for security, leaving the system vulnerable to theft.

Money-grubbing hackers notice when an electronic financial strategy is successful, as is the case with DeFi. With its current open infrastructure, DeFi is left vulnerable to money launderers and other types of criminals partaking in crypto crime. Algorithms on DeFi set real-time rates according to supply and demand.

➄ Bitcoin Impersonators Scam Victims Out of Millions of Dollars

One of the most popular schemes is to impersonate a real Bitcoin account. The anonymity of Bitcoin users and the irreversible nature of transactions attract scammers under the guise of not being detectable. There are four main types of Bitcoin fraud:

• Bitcoin phishing: Victims click a link to a website where they're encouraged to enter their Bitcoin credentials so scammers can steal their money.
• Fake Bitcoin wallets: People who click on the link that attempts to download malware to the user's device.
• Bitcoin flipping: Crypto theft occurs when users are encouraged to invest in Bitcoin and receive double their investment.
• Bitcoin pyramid scheme: Multi-level marketing schemes promise a high-yield return. Investors lose money instead.

Bitcoin scams change frequently. You can keep an eye out for the latest crypto scams by using a free service like CryptoScamDB.

➅ Hackers Infiltrate Official Accounts of Prominent People on Twitter

Unbelievably, hackers orchestrated one of the largest scams on Twitter. Official accounts sent out tweets requesting Bitcoin payments, and in return, victims would receive double their money. Famous people targeted on the platform included:

• Bill Gates
• Barack Obama
• Elon Musk
• Kanye West
• Jeff Bezos
• Joe Biden

Experts conclude that the hack was possible due to the direct attack on Twitter employees who access the social media giant's inner workings. Extra security measures put in place by the company limits access to internal systems. President Donald Trump's account wasn't affected, and his Twitter ID is still active.

➆ CoinCheck Thieves Net Over $534 Million in Brazen Attack    

Hackers pulled off the most massive heist in cryptocurrency history, netting 523 million XEM tokens from CoinCheck in 2018. Rumors spread, pointing the blame at North Korean criminals, but further evidence suggests Russian and Eastern European origin. Like the Twitter hack, employees of CoinCheck were targeted.

Two major viruses, "Mokes" and "Netwire," were detected on the personal computers of CoinCheck personnel. It's believed that the viruses spread through an email to gain access to the exchange's private keys. Both viruses allow criminals to access infected computers remotely.

How to Protect Yourself From Crypto Theft

There are a few important lessons to take away from the biggest crypto thefts. While cryptocurrency companies strive to stay on top of security, you can help keep yourself safe from criminals by taking a few extra steps to protect yourself, including:

• Check the credibility of a business. Research the company and look at reviews, business registration, and do an online search.
• Be wary of uninitiated contact by phone or email. When you're solicited, don't give away your personal information.
• Don't open strange emails. No matter how good the offer looks, don't open a suspicious-looking email to prevent virus infestation of your device.
• Use a strong password for your cryptocurrency account. Don't use the same password for other accounts, and don't share your password with anyone.

Using common-sense is your best defense from scrupulous criminals stealing your digital currency.

Be Smart With Cryptocurrency

Keep in mind that crypto crime is a serious threat, but don’t let that stop you from learning more about it.