1. Watch for Suspicious Transaction Patterns: A common sign of cryptocurrency fraud is any sudden and unusual large volume transaction patterns that appear out of nowhere. These can indicate a fraudster attempting to launder money through cryptocurrency.
2. Monitor Unusual Token Transactions: Keeping an eye out for irregular cryptocurrency token transactions can help identify fraudulent activity. Large spikes in token values, or new tokens suddenly appearing in trading platforms, can be signs of fraud.
3. Review Exchange Activity : An exchange’s publicly-available data can provide insight into whether fraud is taking place. Be sure to monitor any exchange’s order book and look out for irregular activity that could suggest market manipulation and other schemes.
4. Use Third-Party Platforms and Services : Utilizing third-party platforms and services can help detect signs of fraud in the digital currency markets. These outside companies track metrics such as trading volumes, transaction histories, and wallet address information.
5. Check Blockchain Ledgers: Publicly available blockchain ledgers can provide evidence of suspicious transactions. Look for transactions involving large amounts of cryptocurrency, as well as transactions between accounts that may not be connected in any other way.