A Beginner’s Guide to Impersonation Scams

Hong Kong Blocks Fake Cryptocurrency Exchange Websites

What is an Impersonation Scam?

An Impersonation scam is a type of scheme where fraudulent actors try to act as a reliable individual. In this manner, they can trick their victims to send cryptocurrency reserves or reveal personal information.  

Since cryptocurrency projects usually operate in a pseudonymous manner to retain privacy, scammers can take advantage of this and use impersonation methods to defraud unsuspecting parties.

How Does Impersonation Scam Work?

Cypher Mind HQ

Impersonation scams involve various stages and require technical expertise as well. In the first step, scammers try to collect personal information about famous people or influencers. They can complete this process by creating pseudonymous identities online. In this manner, they are able to stalk their targets under phony IDs and even try to interact with them.

On the other hand, they may try to use bogus credentials and technical jargon to convince potential victims about their qualifications. In this manner, they might be able to convince potential targets to invest in an unreliable investment opportunity.

At the same time, they may also request their targets to send cryptocurrencies or share personal information to make the fraud more convincing.

However, as soon as the investors believe the phony sales pitch the fraudsters will take off with their money, leaving them with hefty losses. In some cases, the fraudsters might only be after cheap laughs and entertainment rather than making substantial financial gains.

Therefore, it is affirmative that cryptocurrency investors remain alert against any potential threats or targeted fraudulent attempts at their expense. Using two-factor authentication and strong passwords are some of the best ways to prevent impersonation scams.

Types of Impersonation Scams

Here are some of the most common types of impersonation scams in cryptocurrency sector:

Fake Social Media Profile

Cypher Mind HQ

One of the most used tools for impersonation scams is social media platforms. Anyone can create a fake profile using unverified profile picture and an assumed name. Users have the ability to use same profile pictures and user name as a verified account holder without any restrictions or obstacles.

Therefore, scammers can easily operate as an established influencer, social media personality, or representative of a private firm to defraud potential victims. Once the scammers are done, they can intercept legal interference by deleting their accounts.  

At the same time, fraudulent parties can also malign the name and reputation of an unsuspecting person without their knowledge or awareness. 

Phishing Email and Sites

Scammers use phishing emails to send spiked links to users in order to steal their personal information. However, to do this the scammers can assume the identity of a real company or consultant to fool investors.

For this purpose, the scammers need to create a phony website to create a copy of the real email address such that their victims are unable to discern the difference.

Pump Signals

There are some cases, where scammers can pose as financial advisors and send investors pump signals on social media platforms. In this manner, they can operate pump and dump schemes, rug pulls, or fake airdrops. To avoid this, investors should never make any advanced down payments to unverified operators.

CS Impersonation

DeFi entities operate in a decentralized manner and usually do not offer customer support. However, scammers can use this opportunity to defraud investors by posing as fake CS representatives for a crypto project. They can reach out to users who are looking for CS support on social media sites or via phony websites.

Fraudulent Apps

Another common type of impersonation scam is fake applications. These applications may be listed on iOS or Android Play Store. However, they are most likely to be removed on account of screening process.

Therefore, scammers can direct users to download the fake apps from secondary sources by providing downloading links through copycat sites, emails, or social media accounts.

Ponzi Schemes and Investment Clubs

Scammers may also run a Ponzi scheme and trap investors with promises of big returns. They can continue to pay new investors with money they have got from old investors and do not have a real investment plan to generate legitimate profits. Eventually, the scam crashes down and leaves remaining investors with massive losses.


Impersonation scams not only target investors but also attempt to undermine honest operators. Investors can identify scammers by signs such as grammar mistakes, unrealistic profit offers, personal information harvesting, domain checks, and unnecessary pressure to communicate.

Author: Isacco Genovesi

Isacco writes news articles, reviews and guides about cryptocurrencies including technical analysis, blockchain events, coin prices marketcap and detailed reviews on crypto exchanges and trading platforms.

Leave a Reply

Your email address will not be published. Required fields are marked *