Cryptocurrency scams come in many forms, targeting both new and experienced investors. Here are the most common types:
1. Investment Scams
These scams promise high returns with little to no risk.
- Ponzi schemes – Paying old investors with new investors’ money.
- Pyramid schemes – Participants must recruit others to make money.
- Pump-and-dump schemes – Artificially inflating a coin’s price, then selling off.
- Fake Initial Coin Offerings (ICOs) – Fraudulent crypto projects that never launch.
- Rug pulls – Developers hype a project, raise funds, then disappear with the money.
2. Phishing Scams
These scams trick victims into revealing their private keys or passwords.
- Email phishing – Fake emails that mimic crypto exchanges or wallets.
- Fake websites – Lookalike websites that steal login credentials.
- Social media phishing – Scammers impersonate influencers or projects.
3. Impersonation Scams
Scammers pose as well-known figures or companies to steal money.
- Celebrity scams – Fake giveaways claiming to double deposits.
- Fake customer support – Scammers pretend to be from Binance, Coinbase, etc.
- Government impersonation – Fake “tax authorities” demanding crypto payments.
4. Giveaway & Airdrop Scams
- Victims are asked to send crypto first to receive a larger amount back (which never happens).
- Fake airdrops require wallet connections, leading to fund theft.
5. Malware & Remote Access Scams
- Fake apps & wallets – Scam mobile apps that steal private keys.
- Clipboard malware – Changes copied wallet addresses to scammer’s address.
- Remote access scams – Fraudsters trick victims into installing software that lets them control the device.
6. DeFi (Decentralized Finance) Scams
- Flash loan attacks – Exploiting weaknesses in smart contracts to drain funds.
- Fake liquidity pools – Trapping investors’ funds with no way to withdraw.
- Smart contract exploits – Malicious contracts that steal funds upon interaction.
7. NFT Scams
- Fake NFT marketplaces – Selling non-existent NFTs.
- Counterfeit NFTs – Scammers create fake versions of popular NFTs.
- Bidding scams – Changing payment currencies (e.g., from ETH to a low-value token).
8. SIM Swap & Hacking Scams
- SIM swap attacks – Scammers hijack phone numbers to access crypto wallets.
- Exchange hacks – Fake exchanges or hacked platforms draining user accounts.
9. Loan & Mining Scams
- Cloud mining scams – Fake mining services that never pay out.
- Fake crypto lending platforms – Victims deposit funds but can’t withdraw.
10. Romance Scams (“Pig Butchering”)
- Scammers develop relationships with victims, then convince them to invest in fake crypto schemes.
How to Avoid Crypto Scams
- Never share private keys or seed phrases.
- Verify official websites & social media handles.
- Be cautious of “too good to be true” returns.
- Use hardware wallets for secure storage.
- Enable 2FA on all accounts.
- Research projects before investing.
