The cryptocurrency landscape, while offering innovative financial opportunities, has also become a fertile ground for various scams that prey on unsuspecting individuals. Understanding these fraudulent schemes is crucial for anyone navigating the crypto world. Below is a comprehensive overview of the most prevalent cryptocurrency scams, detailing their mechanisms and providing real-life examples to enhance awareness and prevention.
1. Pseudo Airdrops in Discord/Telegram/Twitter
How it works: Scammers infiltrate popular platforms like Discord, Telegram, and Twitter, posing as legitimate cryptocurrency projects or influencers. They announce free token giveaways, known as “airdrops,” enticing users to participate by clicking on malicious links or providing personal information. These actions often lead to unauthorized access to users’ wallets or the installation of malware.
Example: In 2021, numerous users reported losing funds after participating in fake airdrops promoted on Telegram groups. These scams directed users to counterfeit websites that mimicked legitimate projects, resulting in significant financial losses.
2. Impersonation and Deepfakes
How it works: Scammers create fake profiles or use deepfake technology to impersonate celebrities, industry leaders, or trusted entities. They promote fraudulent investment opportunities or giveaways, convincing users to send cryptocurrency with the promise of high returns.
Example: In 2025, stuntman Felix Leech, known for his roles in “Star Wars” and “Game of Thrones,” lost nearly £50,000 to a cryptocurrency scam. He was lured into a WhatsApp trading group through an Instagram ad, where scammers convinced him to invest increasing amounts, ultimately leading to substantial financial loss.
3. Fake Sites
How it works: Fraudsters design websites that closely resemble legitimate cryptocurrency exchanges, wallets, or ICOs. Unsuspecting users enter their login credentials or private keys, which are then harvested to steal funds.
Example: In 2023, the California Department of Financial Protection and Innovation highlighted the prevalence of phishing scams involving bogus websites designed to trick users into providing sensitive information, leading to unauthorized access to their cryptocurrency holdings.
4. Fake Jobs
How it works: Scammers post fraudulent job listings related to cryptocurrency, offering lucrative positions. Applicants are often asked to pay upfront fees for training or equipment or to provide personal information, which is then misused.
Example: While specific cases are less publicized, numerous reports indicate that individuals have been duped into paying for nonexistent training programs or have had their identities stolen after applying for fake crypto-related jobs.
5. Fake Initial Coin Offerings (ICOs)
How it works: Fraudsters create counterfeit ICOs, enticing investors to purchase tokens for non-existent or fraudulent projects. They often present professionally designed websites and fabricated whitepapers to appear legitimate.
Example: In 2024, a fake ICO named “Blockvest” raised substantial funds before being halted by regulatory authorities. Investors were misled by false claims and endorsements, resulting in significant financial losses.
6. The Pump and Dump
How it works: Organized groups artificially inflate the price of a low-market-cap cryptocurrency through misleading statements and hype. Once the price peaks, they sell off their holdings, causing the price to plummet and leaving other investors with significant losses.
Example: In 2025, Aleksei Andriunin, founder of Gotbit, pleaded guilty to market manipulation and wire fraud. His company engaged in “wash trading” to inflate trading volumes of digital tokens, misleading investors and facilitating pump-and-dump schemes.
7. Cryptojacking
How it works: Scammers secretly use an individual’s computing power to mine cryptocurrencies without consent. This unauthorized mining can occur through malicious software or by embedding mining scripts into websites, leading to degraded device performance and increased energy consumption.
Example: In 2023, a popular website was found to have been compromised with cryptojacking scripts, causing visitors’ devices to mine cryptocurrency unknowingly while browsing the site.
Read also: Rug Pull Tactics. A Common Practice of Fraud in Crypto Space
Tools to Identify and Resist Crypto Scam Schemes
To safeguard against these scams, consider utilizing the following tools:
- Revoke.cash: Allows users to revoke token approvals, preventing unauthorized access to their funds.
- Etherscan’s Token Approval Checker: Enables users to review and revoke token allowances granted to various applications.
- CryptoScamDB: A database that identifies and lists known crypto scams, aiding users in avoiding malicious sites and projects.
Checklist for Avoiding Crypto Scams
- Verify Project Authenticity: Research the project’s website, team members, and reviews. Look for transparent information and verify through multiple sources.
- Be Cautious with Communications: Be skeptical of unsolicited messages or offers, especially those requesting personal information or funds.
- Use Official Channels: Always access platforms through official websites and avoid clicking on links from unknown sources.
- Secure Your Wallet: Never share your private keys or seed phrases. Consider using hardware wallets for enhanced security.
- Stay Informed: Regularly update yourself on common scams and emerging threats in the crypto space.
- Utilize Security Tools: Employ tools like Revoke.cash to monitor and manage your wallet’s security settings.
- Consult Trusted Sources: Before making investment decisions, seek advice from reputable financial advisors familiar with cryptocurrency.
