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Protecting yourself against fraud in the Crypto and Web 3 space


It’s no secret that crypto and the web 3 space are full of scams. From fake ICOs to fraudsters selling you crypto-based “investment opportunities,” there are many ways to lose your money in this wild, wild west of finance. But there are also ways to protect yourself from these bad actors. As a Web 3 agency, we have done the heavy lifting for you and put together a few simple tips to help protect you. In this article, we explore 6 key steps that will show how you can spot and avoid common scams in this space by looking at some of their tell tale signs…

  1. Look for clues that the website is legitimate.
  2. Research the company behind it.
  3. Check out their social media presence.
  4. Ask questions in Telegram and Twitter
  5. Checkout liquidity on Uniswap and other similar protocols.
  6. If a deal sounds too good to be true, it probably is…

Let’s dig in…

Protecting yourself against fraud in the Crypto and Web 3 space

Look for clues that the website is legitimate

  • Check the website for typos and grammatical errors. If the website is poorly written, it’s likely a scam.
  • Check the website for a privacy policy. If they can’t be bothered to provide one, it’s not worth trusting them with your information or money.
  • Check if there is a link on the homepage that says “About Us” or “About.” If so, check what’s in it—and make sure you trust what they’re saying! Many scammers will try to hide behind fake profiles and personal photos from other people (or completely fabricated ones).
  • Make sure there are links to contact pages as well as terms and conditions pages; these should be easy enough to find on most websites these days, but some may not have either one—which should raise questions about whether or not you want anything do with that particular project at all!

Research the company behind it

Another important thing to do is research the company behind it.

  • Check out their website and see if they have an internet presence at all. This can be done easily by searching for a company name on Google, Twitter, or Facebook. If they seem to have some sort of social media presence, look at what kind of content they’re posting—are they engaging with their fans and customers? Do they have many followers?
  • Look up the team members on LinkedIn or in other places where you can search for them specifically by name (i.e., LinkedIn). Are these people who are credible? Are there photos of them that look legitimate? Do they work at companies that would make sense in terms of experience (i.e., software engineer vs project manager)? What kind of jobs did these people have before working here? For example, if someone was previously an executive director at another company where he or she oversaw operations but now he/she is listed as an “engineer” here on this new startup’s website…that might raise some questions about his/her credibility!

Check out their social media presence

Check out their social media presence. While it might be tempting to look at a company’s website and whitepapers, the best place to start your research is actually in the public sphere. That means taking a look at their Facebook page, Twitter account, LinkedIn profile (if they have one), Medium page/channel and other social media platforms where they might be active.

While you will likely find details on the subject matter of the project in their website or whitepaper, you can often learn more about a company through its interactions with others online. Is there an official response posted when someone asks them questions? How quickly do they respond? Are they friendly and helpful or harsh and dismissive? Do they seem knowledgeable about what they are talking about or do certain words stick out as being unfamiliar (which could indicate that someone else wrote them)? Do people feel comfortable interacting with this person online or does it seem like there is some kind of barrier between them and any potential investors who want to ask questions?

Ask questions in Telegram and Twitter

  • If you want to know more about the company and its claims, search on Google.
  • Search the company’s name on Google or Twitter. You can also use Telegram or Reddit to ask questions using the hashtag #ask[company name].
  • Check out their website and social media accounts. If there is no website or social media presence, this is a red flag (although it’s not always true). If there is a website, check for a privacy policy; if there is one, look for a security certificate from an approved authority (such as VeriSign).

Check out liquidity on Uniswap and other similar protocols

A good place to start is checking the liquidity of the token on exchanges. If it’s not listed on a decentralized exchange, you should look for one that does have an active market in order to ensure clear pricing and quick transactions. If it’s listed on both centralized and decentralized exchanges, it’s best to go with a decentralized option as this gives your coins more protection against hacks and other attacks.

If a deal sounds too good to be true, it probably is.

In the crypto and web 3 space, things can get really crazy really fast. There are a lot of people coming from different backgrounds and with different agendas. One of the main problems I’ve encountered is that some people go into this space without knowing what they’re doing and get scammed very quickly because they make mistakes like giving away their private keys or sending money to someone who has no reputation or proof of legitimacy.

If something sounds too good to be true, it probably is. If you’re looking at an ICO (initial coin offering) on Etherscan and see that it’s going to raise $5 million in 48 hours with a market cap of $50 million, you should probably take an extra look before investing your hard-earned money in said ICO project! Make sure that any projects that interest you have been around for at least 6 months (this will allow them time to prove themselves) and check out as much information about them as possible before investing in anything related; if there aren’t any reviews then ask around on twitter or forums like Reddit about other people’s experiences with these projects so far — this way you’ll know what kind of results others have gotten from using their services/products etcetera…


There are a lot of scams in the cryptocurrency space. The good news is that most of them aren’t hard to spot if you have an ounce of common sense. If something sounds too good to be true, it probably is. Always do your research before investing in any new project or company, and check out their social media presence before making a large purchase decision. Keep these tips in mind when doing business with any new exchange or person offering services related to the Web 3 ecosystem!

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