5 common crypto scams and how to avoid them

Learn how to keep your digital assets safe in the ever-changing world of crypto.

Cryptocurrency scams are everywhere. From imposter websites to fake apps to malicious bots lurking on social media platforms, the rise in popularity of crypto has spawned a throng of bad actors that are looking to steal your property.

For example, anonymous hucksters stole an estimated $3.38 million from investors who thought they were buying a new Squid Game token. Even though the launch was replete with red flags, investors jumped at the opportunity to cash in on a hot piece of pop culture. What made this particular scam even worse was the widespread media attention it garnered from the likes of major outlets like Fortune, CNBC, and BBC, among others. 

Given the growing number of malicious events happening in the crypto world, we want to share with our community some of the common red flags you might encounter. To protect yourself from fraud, keep an eye out for the following.

1. Never reveal your private key to Republic. 

• Private keys are generally a set of 12+ words provided to you when you create a wallet or account that are used as a security measure to protect your crypto 

• Republic will never ask for your private key. It is yours and only yours.

• Some scammers may ask you to screenshare instead of collecting the key directly

• Other reputable products may ask for your key  (like MetaMask—who will only ask for your key upon signup)  but in most cases, you should not need to input your private key

2. Never interact with phishing emails.

• Verify the authenticity of logos and branding, and make sure there aren’t multiple misspelled words. Look for typos in the sender address as well,  and never open attachments. 

  • Remember, investor documents can always be accessed from your Republic account.

• Make sure to verify where communications are coming from. At Republic, you will receive email communications from us at crypto@republic.co.

• Double-check the email address for accuracy. 

  • For example, if you receive an email from crypto@republik.co or crypto@repub1ic.co, this is a scam address that should be avoided.

3. Be wary of phishing websites.

• To spot an imposter website, look at the domain name to ensure correct spelling.

  • Ex: r.epublic.co and reepublic.co have been used to spoof republic.co. They are obviously incorrect URLs, yet easy to miss if you’re not looking for errors.

• Look for the small 🔒 icon in the URL bar which indicates the web page you are visiting is secure. 

• Republic will never ask you for critical information unless you are logged in to our site. 

  • To protect yourself from a stolen credentials incident, enable 2FA.

4. Steer clear of fake liquidity pools.

• A liquidity pool is a reserve of cryptocurrencies or tokens secured in a smart contract. It is used to provide liquidity in a decentralized exchange ("DEX"), making trades run smoother.

• Scammers use fake liquidity pools to pump and dump a worthless asset—ultimately leaving investors with nothing.

• Republic will always provide you with the contract address of an issuer’s official token from within your Republic account.

5. Look out for social media scam bots.

• If someone posts a link in the comments section of a post, DO NOT click the link. There is a good chance that the URL is tied to a malware-laden app that is designed to steal from you.

• Don’t trust “free” offers of cryptocurrency in exchange for filling out a survey or any other task that involves clicking a link.

• If someone requests you send them your crypto (for any reason) do not comply. 

Additional things to be aware of:

• We will never collect payment from you via email. All crypto payments are captured securely within your Republic.com investment account. You should never pay with crypto unless you are logged into your account.

• Buying/selling Republic accounts is not permitted. We will disable any Republic.com account that we believe has transferred ownership. No exceptions.

This list is by no means exhaustive due to the fact that new scams are born every day. We will do our best to keep you informed on the latest happenings in the crypto underworld, but it is ultimately up to you to keep your digital assets safe and practice caution while investing.

If you happen to spot something that you think is fraudulent, please notify us immediately at crypto@republic.co