Could You Spot a Crypto Scam?

Summary

Prashanth Challa, Head of Wealth Management Cybersecurity at Morgan Stanley, outlines five common crypto scam tactics—urgency, impersonation, fake websites, wallet approval traps, and too-good-to-be-true returns—and stresses that irreversible blockchain transactions require investor caution and verification.

• Scammers create urgency to prevent verification, pressuring victims to move crypto quickly.
• Impersonation scams involve fake messages from exchanges, banks, or government agencies asking for seed phrases.
• Fraudulent websites and links closely mimic real platforms; users should rely on bookmarks or official apps.
• Wallet approval traps trick users into granting permission to move their funds via a single tap.
• Promises of guaranteed returns, exclusive groups, and relationship-building are common tactics before requesting transfers.
• Crypto transactions are irreversible, so pausing to verify with a trusted person is essential.
• The speaker recommends patience as the best cybersecurity tool for crypto investors.