Cryptocurrency Scam Types

Understanding how scammers operate is the first step in protecting yourself. Learn about common types and their red flags.

The first step to staying safe in crypto is awareness — and it starts here.

The rise of cryptocurrency has opened up exciting opportunities for innovation, investment, and financial freedom. However, it has also attracted a wide range of scammers and cybercriminals who exploit the relative anonymity, lack of regulation, and fast-paced nature of the crypto world. As the cryptocurrency space continues to grow, so do the number and complexity of scam schemes targeting investors, traders, and everyday users.

Basic Categories

Ponzi Schemes

Fraudulent investment operations that pay returns to existing investors from funds contributed by new investors.

Common Examples

  • Promising unrealistic returns (e.g., "Double your money in 30 days")
  • Requiring new investments to pay existing investors
  • Lack of legitimate business operations
  • Pressure to recruit new members

Red Flags

  • Guaranteed high returns
  • Complex fee structures
  • Lack of transparency
  • Aggressive recruitment tactics

Phishing Attacks

Deceptive attempts to steal sensitive information by impersonating legitimate entities.

Common Examples

  • Fake exchange websites
  • Spoofed wallet addresses
  • Malicious email attachments
  • Fake support representatives

Red Flags

  • Urgent action required
  • Suspicious email addresses
  • Poor grammar and spelling
  • Requests for private keys

Fake ICOs

Initial Coin Offerings that are completely fraudulent or misrepresent their business.

Common Examples

  • Non-existent team members
  • Plagiarized whitepapers
  • Fake partnerships
  • Disappearing after fundraising

Red Flags

  • Unverifiable team credentials
  • Copy-pasted whitepapers
  • Unrealistic promises
  • Lack of code repository

Rug Pulls

Developers abandoning a project and stealing investors' funds.

Common Examples

  • Abandoning social media accounts
  • Removing liquidity from exchanges
  • Selling team tokens secretly
  • Disabling trading functionality

Red Flags

  • Anonymous developers
  • No locked liquidity
  • Suspicious token distribution
  • Lack of community engagement

Fake Wallets

Malicious applications that steal private keys and cryptocurrency.

Common Examples

  • Copycat wallet apps
  • Malware-infected wallets
  • Fake hardware wallets
  • Compromised browser extensions

Red Flags

  • Unverified app stores
  • Requests for private keys
  • Poor reviews and ratings
  • Suspicious permissions

Social Engineering

Manipulating people into performing actions or divulging confidential information.

Common Examples

  • Fake celebrity endorsements
  • Impersonating support staff
  • Creating fake urgency
  • Exploiting emotional vulnerabilities

Red Flags

  • Pressure to act quickly
  • Requests for personal information
  • Unusual communication methods
  • Emotional manipulation

Romance Scam (type of Social Engineering)

Playing on people's feelings to get them to go to a fake exchange where they deposit money that immediately disappears.

Common Examples

  • Fake profiles on social networks or dating sites
  • A pretext like "help with investing" or an "emergency situation" to trick you into sending cryptocurrency
  • Creating fake urgency
  • Exploiting emotional vulnerabilities

Red Flags

  • No personal meetings (photos and videos may be stolen or fake)
  • Pressure to act quickly
  • Attempts to evoke a feeling of pity
  • Attempts to crush emotionally and force to make the wrong decision

Keyloggers and Malware

Viruses that infect your digital device and steal data - passwords and seed phrases.

Common Examples

  • Record keystrokes (keylogger)
  • Make screenshots
  • Replace a wallet address with the scammer's address when pasting

Red Flags

  • Increased CPU usage
  • New unknown processes
  • Copied and pasted addresses are different

General Prevention Principles

Follow these fundamental rules to protect yourself from cryptocurrency scam

Verify Everything

Always verify the legitimacy of projects, teams, and opportunities through multiple sources.

Trust Your Instincts

If something seems too good to be true, it probably is. Don't let FOMO cloud your judgment.

Secure Your Assets

Use cold wallets, enable 2FA with authenticators, not SMS, and never share private keys or seed phrases.

What's Next?

Now that you understand common scam tactics, discover the detailed schemes behind them — real scenarios, methods, and defenses.

Learn Scam SchemesExplore Major TheftsStudy Safety Tips