Common Crypto Scams & How to Spot Them
As cryptocurrency becomes more popular around the world, common crypto scams are on the rise. While millions of people are entering the digital money space, scammers are also finding new ways to trick users and steal funds. From fake websites to false promises, these scams can cost people everything. In this article, we’ll explain the most common crypto scams and show you easy ways to recognize and avoid them—so you can protect your money and stay safe while using cryptocurrency.
Phishing Scams: Fake Emails and Websites
Phishing is one of the most common scams in crypto. Scammers try to fool you with fake emails or websites that look like real ones.
How it works:
They send you an email or a message that looks like it’s from a trusted crypto site (like Binance or MetaMask). The link takes you to a fake site. If you enter your info, they steal it and take your crypto.
How to spot it:
- Check the website address. Fake sites often use small changes (like “coinbace.com” instead of “coinbase.com”).
- Don’t trust emails that ask for your password or wallet key.
- Real companies will never ask for your private keys.
How to stay safe:
- Always go to the website by typing the URL yourself.
- Use two-factor authentication (2FA).
- Never share your wallet’s recovery phrase.
Pump and Dump Schemes
These scams involve promoting a coin to increase its price, then selling off the coins for profit.
How it works:
A group hypes up a small or unknown crypto coin on social media. Many people buy it, and the price goes up. Then, the scammers sell their coins and make a profit. After that, the price drops fast, and new buyers lose money.
How to spot it:
- Too much excitement around a coin you’ve never heard of.
- Promises of big profits fast.
- No clear information about what the coin does.
How to stay safe:
- Research any coin before you buy. Use websites like CoinMarketCap and CoinGecko.
- Be careful of social media hype.
- If it sounds too good to be true, it usually is.
Rug Pulls: When Developers Disappear
This scam happens when people create a crypto project, collect money from users, and then vanish.
How it works:
Scammers launch a new token or DeFi project and ask people to invest. After collecting enough money, they shut down everything and leave. The investors are left with worthless tokens.
How to spot it:
- The team behind the project is unknown or hidden.
- The project tells people to buy quickly.
- There is no locked liquidity or security audit.
How to stay safe:
- Check if the developers are real and public.
- Look for third-party audits of the code.
- Make sure the money is locked in a smart contract.
Fake Giveaways: “Send 1, Get 2 Back” Trick
These scams pretend to give away free crypto but are just traps to steal your money.
How it works:
Scammers pretend to be famous people or companies on social media. They say they are giving away crypto and ask you to send some first. But once you send it, they take your money and never give anything back.
How to spot it:
- You see posts saying things like “Send 1 BTC and get 2 BTC back.”
- The post looks like it’s from Elon Musk or a known exchange.
- Lots of comments praising the giveaway—but they are fake too.
How to stay safe:
- Real giveaways don’t ask you to send money first.
- Check official accounts on websites.
- Don’t trust messages from people you don’t know.
Ponzi and Pyramid Schemes
These scams ask you to invest money and bring in others to earn more.
How it works:
You’re told that if you invest a small amount, you’ll get high returns. But to earn more, you have to invite more people to join. The people at the top make money, but new people usually lose everything.
How to spot it:
- You’re promised big profits with little or no risk.
- The main goal is to invite others.
- There’s no real product or service involved.
How to stay safe:
- Be careful of any “get-rich-quick” offer.
- Check if the company is registered and legal.
- Avoid anything that pushes you to bring in new members.
Fake Support Teams and Influencers
Scammers pretend to be crypto experts or help staff from known companies.
How it works:
They send messages acting like they’re from support teams or famous crypto people. They offer help or investment tips. But really, they just want to trick you into giving them your private info or sending money.
How to spot it:
- You get a message from someone claiming to be an admin or support agent.
- The account looks new or has very few followers.
- They ask you to click a strange link.
How to stay safe:
- Only contact support through official websites or apps.
- Don’t reply to DMs offering help or money advice.
- Double-check the username and account details.
Fake Investment Platforms
These are fake websites that claim to invest your crypto and give you big profits.
How it works:
They look like real investment sites. They show fake numbers and returns. At first, they may let you withdraw small profits to gain your trust. But later, they block you or ask for more money before you can withdraw again.
How to spot it:
- The website is full of promises of high daily returns.
- You can’t find much info about the team or company.
- You are asked to reinvest or pay extra to withdraw.
How to stay safe:
- Use only trusted and regulated platforms.
- Read online reviews.
- Don’t invest in websites with no clear business background.
Fake Wallet Apps
Some apps pretend to be crypto wallets but are made to steal your money.
How it works:
You download what looks like a wallet app from an app store or website. But the app is fake and steals your information or redirects your transactions.
How to spot it:
- The developer’s name looks odd or is unfamiliar.
- The app has fake or repeated reviews.
- The app asks for too many permissions.
How to stay safe:
- Download apps only from official sites or trusted stores.
- Use well-known wallets like MetaMask, Trust Wallet, or Ledger.
- Read user reviews carefully.
Social Engineering: The Human Trick
Some scammers don’t use tech—they use emotions and tricks to get what they want.
How it works:
They may talk to you for days or weeks online. Then they say they know about a great investment. They gain your trust and convince you to send crypto. Once you do, they disappear.
How to spot it:
- Someone you just met online is suddenly talking about crypto.
- They push you to act fast or keep it secret.
- They sound too friendly or helpful too quickly.
How to stay safe:
- Don’t talk about your investments with strangers online.
- Don’t send money to someone you’ve never met in real life.
If something feels wrong, it probably is.
Fake ICOs: False Token Launches
Scammers create fake token launches to take your money.
How it works:
They make a nice-looking website and whitepaper for a new coin. They ask you to buy in early. But after getting enough money, they shut everything down and leave.
How to spot it:
- The team is anonymous or uses fake names.
- There is no real product, just big promises.
- They ask for fast investment before time runs out.
How to stay safe:
- Check the project’s details on crypto review sites.
- Look for working apps or platforms, not just promises.
- Make sure the team has real online profiles.
Stay Safe from Common Crypto Scams
Using crypto can help you grow your money, but you must be very careful. Scammers are always looking for ways to trick people. They use fake websites, lies, and pressure to steal your crypto. The best way to stay safe is to learn how common crypto scams work and look for warning signs. Always double-check before clicking any links or sending money. Never share your private keys or wallet info with anyone. If something feels wrong, it probably is. Think before you act—your safety comes first.
Use trusted platforms, enable two-factor authentication, never share your private keys, and stay away from “too good to be true” offers.
New coins can be risky. Always research the team, check for audits, and avoid projects that promise big returns with little effort.
In most cases, it’s very hard to recover stolen crypto. That’s why it’s important to protect your wallet and avoid risky offers.
Watch for red flags like anonymous developers, no working product, fake promises, and pressure to invest quickly.
The most common crypto scams include phishing attacks, pump-and-dump schemes, fake giveaways, rug pulls, and scam investment platforms.