Common crypto scams and how to avoid them
Crypto transactions are hard to reverse, which makes them a favorite target for scammers. Learn the most common tricks and the red flags that give them away.
Why crypto attracts scammers
Most crypto scams don't "hack" the blockchain. They trick people into handing over access or sending funds themselves. Scammers like crypto because:
- Confirmed transactions usually can't be reversed. There's no "chargeback" like with a credit card.
- Funds can move across the world in minutes.
- Many newcomers are still learning how it works, and scammers exploit that confusion.
1. Phishing websites and messages
Scammers create fake copies of real wallets, exchanges and apps, then send you there through emails, text messages, social media posts or even paid search ads. The fake site asks you to "verify your wallet" or "log in", and captures your password or seed phrase.
Protect yourself: bookmark the official sites you use and always go through those bookmarks. Check the exact spelling of web addresses, and never enter a seed phrase on a website.
2. Fake customer support
You post a question publicly, and within minutes a friendly "support agent" messages you directly. They offer to help, then ask for your seed phrase, ask you to install remote-access software, or send you to a "recovery" website.
Protect yourself: real support teams don't contact you first through private messages, and they never ask for seed phrases. Only use the help channels listed on a company's official website.
3. Giveaway and "double your money" scams
A video or post, often using a famous person's name or a deepfake of their face and voice, promises: "Send 0.1 and get 0.2 back!" Anything you send is simply gone.
Protect yourself: nobody legitimate gives away crypto in return for you sending crypto first. No exceptions.
4. Fake investment platforms and "relationship" scams
These long-running scams often start with a wrong-number text, a dating app match or a new online friend. Over weeks, the scammer builds trust, then introduces a "great investment platform". The platform shows impressive (fake) profits, and you're encouraged to deposit more. When you try to withdraw, you're told to pay "taxes" or "fees" first, and the money never comes back.
Protect yourself: be very cautious when someone you've only met online brings up investing. Research any platform independently, and treat demands to pay fees before you can withdraw as a clear sign of fraud.
5. Rug pulls and pump-and-dumps
The creators of a new token hype it up on social media, attract buyers, then sell all their own tokens at once or withdraw the project's funds. The price collapses and the team disappears. That's a rug pull. In a pump-and-dump, a group coordinates buying to push the price up, then sells to latecomers.
Warning signs: anonymous teams, aggressive hype and countdowns, promises of guaranteed returns, and pressure to "get in before it's too late".
6. Malicious approvals and "wallet drainers"
On some blockchains, you can give a smart contract permission to move your tokens. Fake airdrops, fake NFT mints and phishing sites trick you into signing a transaction that grants this permission, and the attacker then empties your wallet.
Protect yourself: read what your wallet asks you to sign. Be suspicious of tokens or NFTs you didn't expect to receive, and don't connect your wallet to unfamiliar sites. Consider keeping larger holdings in a separate wallet that you never connect to websites.
7. Address poisoning
A scammer sends you a tiny transaction from an address that looks almost the same as one you use often, with the same first and last few characters. They hope you'll later copy it from your transaction history by mistake.
Protect yourself: always copy addresses from a trusted source, such as your saved contacts. Don't copy them from your transaction history, and check the whole address, not just the start and end.
- Guaranteed or unusually high returns
- Pressure to act right now
- Anyone asking for your seed phrase or private key
- Requests to send crypto first in order to receive more back
- Fees you must pay before you're allowed to withdraw
- Unsolicited messages from "support", "recruiters" or new online friends
What to do if you've been targeted
- Stop sending money. Scammers often come back promising to "recover" lost funds for a fee. This is another scam.
- Secure what's left. If your seed phrase was exposed, create a new wallet on a safe device and move any remaining funds to it immediately.
- Revoke permissions if you signed a suspicious approval, using a reputable token-approval checker.
- Write everything down: transaction IDs, addresses, websites, usernames and screenshots.
- Report it to your local police and your country's national fraud-reporting agency. If an exchange was involved, report it to the exchange as well. Sometimes they can freeze funds that arrive there.
- Most scams target people, not technology. Slow down and check before you act.
- Never share your seed phrase, and never enter it on a website.
- If it promises guaranteed profits, it's a scam.
- "Recovery services" that contact you after a scam are almost always scams too.
Check your understanding
1. A celebrity's livestream says "send 1 ETH, get 2 back". Is it real?
No. It's a giveaway scam, often made with deepfake video. Anything you send will be lost.
2. An investment platform shows big profits but asks for a "tax payment" before you can withdraw. What's happening?
It's very likely a fake platform. The profits aren't real, and the "fee" is another way to take your money.
3. What's the safest way to get a wallet address you've used before?
From a trusted saved contact or directly from the recipient, checking the full address. Don't copy it from your transaction history, which may contain look-alike "poisoned" addresses.
Keep learning
Educational content only. This lesson is general safety information. It isn't financial, investment or legal advice. If you've lost money to fraud, contact your local authorities.