By Dr. Pooyan Ghamari, Swiss Economist and Visionary
You can listen to the Spotify Podcast on this topic
In the world of cryptocurrency, stories of sudden wealth, high returns, and unthinkable profits have captured the imagination of millions. But as more and more people get involved in the crypto space, the risks of falling prey to scams and fraudulent schemes have never been higher. One of the most insidious scams currently circulating involves promises of doubling your cryptocurrency in a matter of hours or days, often through Telegram groups, one of the most popular communication platforms used by cryptocurrency enthusiasts.
In this article, I will delve into the mechanics of these so-called “crypto doubling scams,” how they operate, why they’re so dangerous, and most importantly, how you can protect yourself from falling victim to these fraudulent schemes. As a Swiss economist who has been studying the intersections of digital currencies, financial markets, and the behavior of digital economies, I have witnessed the rise of these scams and am deeply concerned about their impact on individuals and the broader crypto ecosystem.
Cryptocurrency, as a decentralized and relatively new asset class, presents unique challenges. Its lack of regulatory oversight, anonymity, and volatility make it a prime target for scammers looking to exploit the unprepared or uninformed. One such scam gaining traction across social media platforms is the “crypto doubling scam” — a trap that lures individuals in with promises of guaranteed returns. And it often starts with a simple invitation to join a Telegram group.
The Rise of Telegram Scams in Crypto
Telegram is a messaging app that has become incredibly popular among cryptocurrency traders, investors, and influencers. Its encrypted nature, ability to create large groups, and ease of use have made it an ideal platform for communities focused on cryptocurrency discussions. It’s not uncommon for users to receive invitations to join cryptocurrency-related groups, where they can get updates on the latest trends, exchange ideas, or follow a “guru” promising insights into making massive profits.
However, the very aspects that make Telegram an attractive tool for the crypto community also make it a haven for scammers. Unregulated and largely unmonitored, Telegram allows scammers to create seemingly legitimate groups that look like any other crypto trading community. The problem arises when scammers pose as legitimate investors, crypto enthusiasts, or influencers, claiming to offer a once-in-a-lifetime opportunity for people to “double” their crypto holdings with little to no risk.
These types of scams work by exploiting human psychology, making use of the promise of easy, fast returns to lure people in. Scammers prey on individuals’ hopes of becoming wealthy quickly and easily, tapping into the universal desire to make money without much effort.
How the Crypto Doubling Scam Works
At first glance, the scam may seem harmless or even legitimate. Here’s how it typically unfolds:
1. The Invitation
The scam starts with an invitation to a Telegram group that is marketed as a community where cryptocurrency traders share tips, provide guidance, or offer new investment opportunities. The invitation might come from a trusted contact, a well-known influencer, or even from a well-designed ad that claims to offer “insider knowledge” about the crypto world.
It’s important to note that some scammers go so far as to hire actors or fake influencers who have a large following to create a sense of legitimacy. They may even use testimonials or past success stories to build trust.
2. The Pitch
Once you join the group, the scammer or group admin will start to pitch an incredible opportunity. They’ll promise that if you send them a certain amount of cryptocurrency—Bitcoin, Ethereum, or even stablecoins—your investment will be doubled in a matter of hours or days. They may even claim that their “proven” system or investment strategy guarantees such returns, often using complex jargon to make it sound sophisticated and legitimate.
The pitch will usually emphasize how “simple” it is to participate and how others have already profited. Scammers will often use psychological manipulation by playing on emotions such as fear of missing out (FOMO) or greed. The urgency of the offer is designed to pressure individuals into making hasty decisions without proper research.
3. The Transfer
After gaining the victim’s trust, the scammer will direct the individual to send a specified amount of cryptocurrency to a wallet address that appears to be part of the system. Once the payment is made, the scammer will assure the victim that their investment is now in progress and that they will soon see their funds doubled.
At this point, the scammer may even encourage further investment, promising additional bonuses or faster returns. They may offer “referral bonuses” or exclusive access to higher returns for bringing in friends or family members.
4. The Disappearance
Once the victim has sent their funds, things start to take a turn for the worse. At first, the victim may receive a small “return” on their investment—an amount that is much smaller than what they were promised but still large enough to appear legitimate. This initial “return” is designed to build trust and encourage the victim to send more funds.
However, after a short period of time, the victim will be told that further payments are needed to “release” the doubled amount. The scammer might claim that there are network fees, trading fees, or “unlocking” fees. If the victim complies and sends more money, they will find that the scammer vanishes, leaving them with no way to contact them, and their funds are gone for good.
In some cases, the scammer might create a sense of doubt by claiming that the victim’s transaction is “pending,” encouraging them to wait for a longer period. But no matter how long they wait, the promised return will never come, and the scammer will disappear, leaving the victim empty-handed.
Why Do People Fall for Crypto Doubling Scams?
Despite the obvious risks, people continue to fall for crypto doubling scams. There are several factors at play here:
1. Lack of Knowledge
Many individuals who enter the cryptocurrency space are relatively new and may not fully understand the technology or market dynamics. They may not be familiar with how cryptocurrency transactions work or how scams operate within the space. This lack of knowledge makes them easy targets for fraudsters.
2. Psychological Manipulation
Scammers excel in manipulating human emotions. The promise of fast returns and the allure of doubling their money plays into basic human desires—greed, the need for financial security, and the fear of missing out. Scammers often exploit these emotions to push their victims into making rash decisions.
3. Social Proof
Scammers often create fake testimonials, use actors or influencers, or post fabricated success stories to provide “social proof” that their system works. This false evidence convinces victims that the scam is real. After all, if others are making money, why wouldn’t they?
4. Anonymity of Crypto Transactions
Cryptocurrency transactions are typically irreversible, and transactions made to anonymous addresses cannot be traced. This anonymity makes it easier for scammers to steal funds without facing any significant consequences. The lack of regulatory oversight in the crypto space also allows these scammers to operate freely.
5. Urgency and Pressure
Scammers create a sense of urgency to push people into making hasty decisions. They may tell you that the offer is only available for a limited time or that you have to act fast to secure your position. This rush to make decisions increases the likelihood of falling victim to the scam.
How to Protect Yourself from Crypto Doubling Scams
1. Be Skeptical of Promises of High Returns
If something sounds too good to be true, it usually is. Always be wary of promises to double your cryptocurrency in a short period. In the crypto space, there are no guarantees, and anyone promising guaranteed returns is almost certainly a scammer.
2. Do Your Research
Before sending any cryptocurrency to anyone, do thorough research. Look up the Telegram group, the “company,” or the investment strategy. Genuine projects and investors will have verifiable information and a transparent history.
3. Use Trusted Platforms
Stick to well-established exchanges and platforms for trading or investing in cryptocurrencies. These platforms have established reputations and are less likely to be involved in scams. If you’re unfamiliar with a platform or investment opportunity, do some digging first.
4. Verify Sources of Information
Be cautious when receiving unsolicited messages or invitations to join Telegram groups. Scammers often use social engineering tactics to make their offers appear legitimate. Never trust anyone who reaches out to you with unsolicited offers, especially if they promise large returns.
5. Don’t Send Cryptocurrency to Unknown Addresses
Only send cryptocurrency to known and trusted wallet addresses. If someone asks you to send funds to an unknown address, it’s a red flag. Remember, cryptocurrency transactions are irreversible.
6. Report Suspicious Activity
If you encounter a suspicious Telegram group or an individual making dubious offers, report them to Telegram or relevant authorities. Reporting scams helps protect others from falling victim to the same traps.
The Broader Impact of Crypto Scams
While crypto scams may seem like isolated incidents, they have far-reaching consequences. The growth of such scams can harm the legitimacy of the entire cryptocurrency industry, stifle innovation, and undermine trust in digital assets. If individuals are constantly targeted by fraudsters, they may become disillusioned with the entire crypto ecosystem and withdraw their investments, ultimately affecting the adoption and development of the technology.
For regulators, crypto scams present a significant challenge. The decentralized nature of blockchain technology, combined with the global reach of the internet, makes it difficult to establish effective laws and enforcement mechanisms. As the crypto industry matures, it will be essential for both the public and private sectors to work together to create robust safeguards for investors while maintaining the innovation that has driven the success of digital currencies.
Crypto doubling scams, particularly those operating through Telegram groups, are a growing threat to unsuspecting cryptocurrency investors. These scams prey on the psychological vulnerabilities of individuals looking for easy wealth and play on the lack of knowledge surrounding cryptocurrency transactions. As the crypto space continues to evolve, it is essential that users educate themselves, remain vigilant, and adopt secure practices to protect themselves from falling prey to such fraud.
Dr. Pooyan Ghamari, Swiss economist and visionary, believes that in order to protect the integrity of digital finance and ensure the sustainable growth of cryptocurrencies, we must prioritize education, regulation, and security. Only through collective awareness and a shared commitment to combating fraud can we safeguard the future of the cryptocurrency ecosystem and ensure that it remains a space for innovation and opportunity rather than exploitation.
