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| author | uzoma24 |
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| permlink | fake-airdrops-mode-of-operation-and-how-to-protect-self |
|---|
| title | "Fake airdrops scam, mode of operation and how to protect self" |
|---|
| body | " https://i.imgur.com/GiEWuci.jpg
[Source](https://pixabay.com/illustrations/fake-money-fraud-bank-bankrupt-4319002/)
https://i.imgur.com/Fz5Lqja.jpg
<div class="text-justify">
## Introduction
When new crypto projects are launching, they usually give out airdrops to attract people to the crypto project. However, scammers have capitalized on this and deviced means to scam unsuspecting victims who are mostly newbies in the crypto space.
Because we are at the dawn of the crypto era, there are many airdrops out there especially, on telegram. We are therefore adviced to be careful. This post will help us to decipher between real and fake airdrops. Else, we fall into the hands of scammers.
https://i.imgur.com/Fz5Lqja.jpg
<Br>
## Fake airdrops
This is a type of scam or fraud within the crypto space. Here, scammers disguise as reliable or legitimate Blockchain projects, they will claim that they will distribute free crypto currency coins to individuals that participate in their activities.
Perhaps, their true intention is to deceive them and steal their [cryptocurrency](https://leofinance.io/@leoglossary/cryptocurrency) or personal informations.
****
[Fake](https://leofinance.io/@leoglossary/leoglossary-fraud) airdrops defined
> Within the realm of crypto, it is not uncommon for DeFi protocols distribute airdrop rewards to users who interact with it and complete certain tasks – more commonly known as “airdrop grinding”. However, some airdrops of unknown origin may potentially empty users’ wallets. These tokens generally have large amounts and are extremely tempting.
If a user authorizes a contract while attempting to sell the token, they may inadvertently grant the issuing party permission to transfer funds from their wallet, resulting in asset theft.
Once the scammers have succeeded, they often use decentralized exchanges to mix the tokens and cash them out to other addresses. As a result, victims of such scams often find it difficult to recover their funds. [Source](https://study.bitkeep.com/en/?ht_kb=fake-airdrops-and-fake-app-scams)
https://i.imgur.com/Fz5Lqja.jpg
<Br>
## Why do people run fake airdrops scam?
These scammers can actually make good money from these airdrops. Ways they can make these money may include;
### Stealing the victims personal information
* When they succeed to get the crypto informations, they will start to prey on them.
* Sometimes they use the information of their victims to create bot accounts and be impersonating the real owner on various platforms.
### Extortion
* They can extort money from their victims by charging them registration fee for airdrops.
* They can also use it to solicit for donations.
### obtaining victim's personal keys
Some scammers create websites, if an unsuspecting victim enters his private keys on the website, the scammer will have access to the keys and use it to steal their [funds](https://leofinance.io/@leoglossary/leoglossary-fund)
https://i.imgur.com/Fz5Lqja.jpg
<Br>
## Their mode of operation:
Let me explain their mode of operation from the time they start building to the time they have swindled their victims.
### They recruit or partner with influencers
At the planning stage, they partner with people that has large followers on social media platforms or people that own a crypto community either on WhatsApp, Facebook or telegram. They are either paid outrightly for their services or they own a certain percentage of of the loot at the end of the day.
### Fake promotions:
After they lunch the fake airdrops project, they start promoting them online through their proxies. They exploit all online channels like; social media, email, chats, crypto platforms and groups.
They tell the unsuspecting victims that they can earn airdrops by just participating in their tasks.
### Requirements to participate.
Here, they demand personal information.
Then tell the prospective participants to send in small amounts of crypto (normally, USDT, [Bitcoin](https://leofinance.io/@leoglossary/leoglossary-bitcoin) and [Ethereum](https://leofinance.io/@crypto-guides/what-is-ethereum-eth)) as **"processing fee, verification fee, or registration fee"**
This is supposed to be the first red flag an experienced person is supposed to take notice of.
### Promise of reward to those that will pay the registration fee.
They say that once you pay the registration fee, that they would send part of the money you had sent back to you.
*Most times, they try to say that they are giving special package or discount to the first set of people to pay. (Say first 100 people to pay and register)*
### After they received the payment, they disappear
Once you make the payment to them, they will severe communications with the victim and move further to blocking off the victim from that social media network used to initiate all transactions and also block the victim from the website. This is so that you don't disturb them while they continue to bring in and swindle other unsuspecting victims, and the cycle continues.
### Outright [loss](https://leofinance.io/@leoglossary/leoglossary-loss-financial)
of funds
After you sent the money and they refuse to send you the part of the money they had promised, they block you on their channels and kicked you out of their site, this indicates you have lost your funds. In cryptocurrency, concluded transactions are irreversible. Secondly, you do not know the identity of the person you sent the funds to.
https://i.imgur.com/Mtlc3I3.jpg
[Source](https://www.istockphoto.com/photo/fake-text-message-sms-scam-or-phishing-concept-gm1367617040-437817676?phrase=Fake)
https://i.imgur.com/Fz5Lqja.jpg
<Br>
## How to identify a fake [airdrop](https://leofinance.io/@leoglossary/leoglossary-airdrop)
### Unsolicited offers
Be very careful of airdrops that you didn't solicit for. Most times, promoters of the fake airdrops (The scammers or the people they had recruited to help them with publicity) are the people that will seek you out.
### Fake social media accounts
Scammers use fake social media accounts to promote their work. You are advised to strictly check the performance of their social media before getting involved with an airdrop.
### Unnecessary registration requirements
If an airdrop project demands for lots of unrelated personal details from you. It should send a red flag. Such details may include; passport details, social [security](https://leofinance.io/@leoglossary/leoglossary-security), phone number etc.
### Limited information on site and social media [networks](https://leofinance.io/@leoglossary/leoglossary-network)
If you visit their site or social media and there are limited information about the project, its most likely a scam. This is because they are supposed to have updated their progress, plans and goals for the general public to see.
### Demand for any form of deposit
Any airdrop that asks you to make any form of payment before you can register is likely a scam.
### Request for private keys
In cryptocurrency, personal keys are very personal belongings that should not be shared with anyone. If at any time. Therefore, if an airdrop site demands for your personal keys, it should send a red flag.
### Guaranteed profit
Because we know crypto is volatile even as it is unpredictable, any airdrop that guarantees profit is most likely a scam.
### When they suggest the possible value the coin
Each time the value of a coin is suggested while at airdrop stage, it is a seating time bomb. This is because you can not determine the price of a coin until it is listed on an exchange platform.
https://i.imgur.com/Fz5Lqja.jpg
<Br>
## How to protect self from fake airdrops
* Seek to know the authenticity of the airdrop by checking the official website or social media channel of the Blockchain projet. If its a good project, it will be on their site and social media handles.
* Be very careful with airdrop offers that seems too good to be true.
* See that you always use verified and reputable cryptocurrency exchange platforms and wallets, whose security models are topnotch.
* Be very careful. Do not send nor disclose personal information to any source that is unverified.
https://i.imgur.com/Fz5Lqja.jpg
<Br>
## Conclusion
One thing I know about scammers is that they are very smart people. However, because many people had been scammed in the past, they are more careful reasons the scammers need to work harder to lure people to their projects.
Because of their desperate nature, they may shoot themselves on the foot by disclosing some of the tips we have discussed above. Be vigilant, so as to identify them.
More importantly, everyone in the crypto space should be mindful of the fact that the crypto space is very risky and there is no form of reversal once a transaction is concluded. We are therefore advised to do our due diligence on any airdrop else, we'll be exposing ourselves to lots of risks.
Amongst all these, there are still good airdrops, we just have to be careful so as not to fall into the nest of scammers.
One may even decide to stay clear of airdrops, because it is better to be late than sorry.
</div>
Posted Using [LeoFinance Alpha](https://leofinance.io/@uzoma24/fake-airdrops-mode-of-operation-and-how-to-protect-self)" |
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hiveblocks