Common crypto scams

Cryptocurrency is convenient — and criminals know it. Once your coins are gone, they’re almost impossible to get back. That’s why it’s critical to know how crypto scams work, the tactics criminals use, and the red flags that should stop you in your tracks.

Here’s a clear look at the most common crypto scams and how they trick people into handing over their money.

Phishing & Impersonation Scams

One of the biggest threats in crypto is phishing — but with a modern twist:

• You get an email or text claiming there’s a problem with your exchange account or wallet.
• It looks official, using real logos and urgent language.
• They want you to click a link that takes you to a fake version of a real site (like Coinbase, Binance, or Metamask).
• You enter your login info or seed phrase — and you’ve handed over full control.

Red flag: No real company will ever ask for your seed phrase, private keys, or 2FA codes via email or text.

Fake Investment Platforms & High Return Schemes

These scams are rampant on social media:

• Scammers pose as crypto traders, brokers, or financial gurus.
• They promise huge returns on crypto trades, forex, or mining.
• Victims deposit crypto into a fake “platform” and see fake profits.
• When you try to withdraw, they demand more fees — then disappear.

Red flag: Guaranteed returns do not exist in crypto trading. If someone guarantees you profit, it’s a scam.

Romance Crypto Scams

Sometimes called “Pig Butchering”:

• You meet someone on a dating app or social media.
• They build trust slowly — daily chats for weeks or months.
• They suggest trading crypto or “mining together.”
• You deposit funds, see fake profits, and are urged to keep investing.
• When you try to cash out, your money is gone.

Red flag: Any new online friend who asks you to invest in crypto with them is almost certainly a scammer.

Giveaway Scams

These spread fast on social media:

• You see a post or ad: “Send us 0.1 BTC and get 1 BTC back!”
• They impersonate celebrities, big exchanges, or famous brands.

Red flag: Nobody legit asks you to send crypto to get more crypto back.

Crypto Recovery Scams

These target people who already lost money:

• Scammers pose as recovery experts, promising to trace and freeze stolen crypto.
• They ask for upfront fees or a percentage of your loss.
• They claim your funds are “held” — but they aren’t. It’s another scam.

Red flag: No real recovery firm guarantees they can get your crypto back. Only law enforcement with a court order can freeze or seize assets.

Pump & Dump Coins

This is a classic market manipulation scam:

• Small groups hype a new token or coin in chat rooms.
• They promise it’s the next Bitcoin or a “secret community coin.”
• When enough people buy in and the price spikes, organizers dump their coins — crashing the price.
• Everyone else is left with worthless tokens.

Red flag: If you hear about a “secret” new coin in a private group, run.

Rug Pulls & DeFi Exploits

In decentralized finance (DeFi):

• Scammers launch new crypto projects or liquidity pools.
• They hype them up to attract investor money.
• Then they drain the funds and disappear — leaving investors with worthless tokens.
• Sometimes the exploit is in the code; sometimes it’s intentional from day one.

Red flag: If the team is anonymous and there’s no verified track record, it’s risky.

Malware & Fake Wallets

Scammers may trick you into downloading a fake crypto wallet app:

• Once you enter your keys or recovery phrase, your real wallet is emptied.
• Some malware watches your clipboard to swap your wallet address when you paste it.

Red flag: Only download wallets or crypto apps from official websites or trusted app stores.

How to Protect Your Crypto

• Use strong, unique passwords and enable two-factor authentication (2FA).
• Never share your seed phrase or private keys — ever.
• Double-check website URLs before logging into any exchange or wallet.
• If it sounds too good to be true, it is.
• Research crypto projects carefully — look for transparent teams and real community support.
• Talk to your bank or a trusted fraud advisor if you suspect you’re being scammed.

Final Word

Crypto is fast, borderless — and irreversible once you send your coins. Slow down. Double-check. Trust no one with guaranteed returns. If you do get scammed, report it to your bank, law enforcement, and your country’s fraud reporting centers — and don’t let criminals scam you again.