Fraud Prevention in Crypto: How to Spot Scams and Protect Your Assets

When it comes to fraud prevention, the set of practices and tools designed to stop financial deception in digital asset markets. Also known as crypto security, it’s not about being paranoid—it’s about surviving in a space where 1 in 5 new projects are outright scams. You don’t need a degree in blockchain to avoid getting ripped off. You just need to know what to look for.

Most fraud happens through fake crypto airdrop scams, false promises of free tokens that steal your wallet keys. Think of the IMM airdrop or BABYDB claims—zero supply, zero legitimacy, but thousands of people still click and connect their wallets. These aren’t clever hacks. They’re basic phishing traps dressed up as hype. Then there are fake exchanges like Bitsoda and Negocie Coins—platforms that vanish overnight after collecting deposits. And let’s not forget the $34 billion fine looming over Upbit for failing KYC violations, the legal requirement to verify user identities to prevent money laundering. When exchanges skip KYC, they’re not cutting corners—they’re inviting chaos.

Fraud prevention isn’t about fancy tools or complex software. It’s about asking simple questions: Is this airdrop on CoinMarketCap or just a random tweet? Does this exchange have a physical address or just a Telegram group? Are they asking for your private key? If the answer to any of those is yes, walk away. Real projects don’t beg you to act now. They give you time to research. They link to clear documentation. They don’t pressure you with countdown timers.

Some people think regulation fixes everything. But look at Thailand—jail time for using unlicensed platforms. Or Germany, where BaFin licensing makes compliance mandatory. Rules help, but they’re always playing catch-up. The real shield is your own awareness. Every post in this collection shows how fraud evolves: from fake fan tokens to misleading exchange reviews. You’ll see how a token with no team (like PSUB) still gets traded. How a crypto exchange in Brazil shuts down and leaves users with nothing. How even big names like Coinbase block users not because they’re evil, but because they’re forced to follow sanctions.

You won’t find magic bullets here. Just facts. Real cases. Clear red flags. And the one thing no scammer wants you to have: time to think before you click.