Bait-and-Switch Scam

A bait-and-switch scam is a deceptive sales strategy in which a victim is lured by a low-priced product or service but later pressured to purchase an alternative, high-priced product or service

What Is A Bait and Switch Scam?

Assume you are browsing the internet, and you see a flashy ad about a product you’ve always wanted. The product is allegedly on offer, say at a 70% discount, attracting you to an e-commerce platform. 

However, once you’ve shown interest and visited the store or website, you find out that the product is unavailable, and the store redirects you to a substitute product. In most cases, the alternative is rather more expensive or of lower quality than the advertised product. This strategy is called “bait and switch.”

Generally speaking, a bait and switch scam is a form of fraud in which a company or individual merchant misleads consumers into a transaction by advertising an appealing yet ingenuine product, then switching them with a sub-par, more expensive, or poor-quality substitute. 

In a crypto context, the lucrative deal offered may be a promise of profitable cryptocurrency, where the scammer ends up substituting it with a fraudulent option. These scams often involve promises of unrealistically high returns, misleading project information, and the use of illegitimate trading platforms.

Characteristics of a Bait and Switch Fraud in Crypto

Some of the ways of identifying a cryptocurrency bait-and-switch fraud include:

• Sudden unavailability – The scammers often cite that the initially advertised offer is unavailable and offer a different alternative, usually a lesser-known crypto project.
• Persistent upselling – Most bait-and-switch scams use high-pressure tactics to convince users to invest in the alternative crypto project immediately to avoid missing out on a limited opportunity.
• Unrealistic promises – Such scams often offer deals that are too good to be true, such as low-risk, high-return crypto investments or quick riches. 
• Lack of transparency – The scammers often provide vague information about the alternative crypto project or investment opportunity