Crypto scams use deception, fake platforms, and social engineering to steal digital assets through methods like fake giveaways (impersonating celebrities), romance scams (“pig butchering”), phishing (fake websites/apps), and Ponzi schemes (promising high returns), all designed to trick victims into revealing private keys or sending crypto to scammers. Common red flags include promises of guaranteed high returns, requests for upfront fees, and urgency, with scams often starting on social media or dating apps.
Common Types of Crypto Scams
- Giveaway/Airdrop Scams: Fake posts or livestreams from “celebrities” promising to double your crypto if you send some first.
- Pig Butchering/Romance Scams: Building trust (romantic or otherwise) to lure victims into investing in fake platforms that show fake profits, eventually taking all funds.
- Phishing & Fake Sites: Bogus websites or apps that mimic legitimate exchanges, designed to steal wallet login info or private keys.
- Ponzi/Pyramid Schemes: Relying on new investors’ money to pay older investors, creating a false sense of profitability.
- Rug Pulls: Developers hype a new coin, then suddenly abandon the project, selling their holdings and crashing the price.
- Fake ICOs: Bogus Initial Coin Offerings for new cryptocurrencies that are designed to steal funds.
- Crypto ATM Scams: Scammers convince victims to use crypto ATMs to send cash to the scammer’s wallet, often under duress (e.g., imposter scams).
How to Protect Yourself
- Be Skeptical of High Returns: If it sounds too good to be true, it is.
- Verify Everything: Research companies, people, and platforms online (e.g., “company name review scam”).
- Guard Your Keys: Never share your private keys, passwords, or seed phrases.
- Beware of Strangers: Don’t invest based on advice from people met online, especially on social media or dating apps.
- Check URLs: Look for slight misspellings or unusual domain names on financial sites.
- Don’t Pay to Get Your Money Back: Scammers demanding fees to release “profits” are a major red flag.
