Not Covered

The following forms of thefts and scams that result in losses are not covered by Fairside.

Accidental Transfers

Fairside does not cover instances where an individual accidentally transfers crypto or NFTs to the wrong address as a result of typos, copy and paste errors, or other user mistakes. This is distinct from Address Poisoning or social engineering attacks, which are covered events.

Fraudulent Investment Opportunities

Attackers may approach victims with false investment opportunities, such as high-yield investment programs (HYIPs), promising significant returns on their cryptocurrency investments. The attacker may ask the victim to transfer their crypto assets to a specific wallet address under their control, only to disappear once the victim's funds have been transferred.

Secondary Social Engineering

After successfully SIM-swapping the victim's phone number, an attacker may contact the victim's friends, family, or associates, pretending to be the victim. The attacker may ask for help or claim to be in an emergency situation, requesting that the victim's contacts send cryptocurrency to a wallet address under the attacker's control.

Giveaway Scams

Attackers may create social media posts or send messages impersonating celebrities, influencers, or representatives of cryptocurrency projects, offering giveaways or rewards for sending a small amount of crypto to a specified wallet address. The scammer claims that they will send a larger amount of cryptocurrency back to the participant, but victims who send their crypto assets never receive anything in return.

Romance Scams

In this type of social engineering attack, scammers establish online relationships with victims, often on dating or social networking websites, and eventually ask for financial support in the form of cryptocurrency. The attacker may claim that they need the funds to cover a personal crisis or travel expenses to meet the victim in person. Once the victim transfers their crypto assets, the scammer typically breaks off contact.

Employment Scams

Attackers may post fake job listings or reach out to potential victims with offers of high-paying remote work opportunities. The scammer may ask the victim to transfer cryptocurrency as part of their job duties, such as making payments to vendors or managing company funds. The attacker may also request that the victim pay for job-related expenses, such as training materials or software licenses, in cryptocurrency. In both cases, the victim loses their crypto assets to the scammer.

Extortion Scams

Scammers may send threatening messages to victims, claiming to have compromising information or evidence of illegal activities, and demand payment in cryptocurrency to prevent the release of the information. Fearing damage to their reputation or legal consequences, the victim may comply and transfer their crypto assets to the attacker.

Confidence Scams

Attackers may befriend victims, gaining their trust and confidence over time, only to betray them by convincing the victim to transfer their cryptocurrency to the attacker's wallet, either as a loan, an investment, or for some other seemingly legitimate reason. Once the victim transfers their crypto assets, the attacker disappears.

Impersonation of Law Enforcement

Scammers may contact victims, claiming to be representatives of a government agency or law enforcement. They may accuse the victim of illegal activities related to their cryptocurrency holdings and demand payment in the form of cryptocurrency to avoid legal consequences. The victim, fearing potential legal issues, may comply and transfer their crypto assets to the attacker.

Fake Charities and Donation Scams

Attackers may create fraudulent charitable organizations or donation campaigns, often targeting recent disasters or ongoing crises, and ask for donations in the form of cryptocurrency. Victims who transfer their crypto assets to the attacker's wallet address, believing they are supporting a good cause, will instead lose their funds to the scammer.