Common Types of Crypto Scams - How To Spot And Avoid Them

Crypto scams are becoming increasingly sophisticated, evolving alongside the growth of the market and the rising interest in digital investments. Scammers use various tactics – from psychological manipulation and social engineering to artificial intelligence and fake online platforms – to exploit users’ inattention, trust, or lack of knowledge.

Since cryptocurrency transactions are often irreversible, it’s important to understand how these scams work and the most common tactics attackers use. Below, we highlight 10 of the most frequent types of crypto scams to watch out for, along with tips on how to recognize and avoid them in time.

10 Most Common Types of Crypto Scams

AI-Powered Impersonation Scams

Scammers now use artificial intelligence to create fake videos and voices (so-called deepfakes) to pose as celebrities, influencers, or even crypto company employees. Their goal is to convince you to send them money or visit a fake website.

Example: Videos frequently circulate on social media showing Elon Musk “promoting” a crypto giveaway. These are AI manipulations – the real Musk has nothing to do with them.

Romance and Investment Scams (“Pig Butchering”)

This scam usually starts as a casual online conversation via social media, dating apps, or direct messages. The scammer builds emotional trust, then convinces the victim to invest in a fake crypto project.

Such scams have resulted in multi-million dollar losses, especially among people who maintained long-term communication with the fraudster.

Crypto Shilling

Shilling is a common market manipulation tactic where a token or project is aggressively promoted to attract investors, even if it lacks real value. You can learn more about this type of scam in our blog on crypto shilling.

Crypto Wallet Draining Scams

These scams involve malicious smart contracts. Victims unknowingly approve access to their wallets (e.g., by connecting to a fake website), allowing scammers to automatically drain all their tokens.

Warning: Never approve a transaction or wallet connection unless you're 100% sure the platform is legitimate.

Fake Technical Support and Phishing

Crypto scammers pose as customer support agents from well-known platforms. They contact victims via email, pop-ups, or social media, claiming that their account has been blocked or that they need to urgently verify something or install software. The goal is to steal wallet access.

They often target older individuals or users who are new to crypto.

Fake Exchanges and Exit Scams

Scammers sometimes launch websites that appear to be legitimate crypto exchanges. People deposit money, and after a certain period — the site disappears. This is known as an “exit scam,” where creators vanish with users’ funds.

Rug Pulls and Ponzi Schemes

These scams involve launching a new token or DeFi project with big promises. Once a significant amount of money is invested, the team drains the liquidity and disappears.

It's similar to a Ponzi scheme — early investors are paid using the funds from new ones, until the system collapses.

Paid Signals and Investment Groups Scams

Groups on Telegram and similar apps often advertise "guaranteed trading signals."

After paying a membership fee, victims receive useless information or are pressured into investing more into shady projects.

For real user stories and detailed discussions about such scams, check out the r/CryptoCurrency forum on Reddit.

Crypto ATM Scams

Scammers contact victims and convince them to urgently pay a "fine," "debt," or "verification fee" using a crypto ATM. Once the transaction is made, the funds are gone — with no chance of recovery.

Fake Giveaway and Airdrop Campaigns

On social media and suspicious websites, scammers promote fake giveaways claiming you’ll receive free tokens if you pay a small "gas fee" (transaction fee).
After sending the money — nothing arrives. The promised tokens never come.

Crypto Scams – Frequently Asked Questions

How to recognize potential crypto scammers?

One of the first and most important steps is to verify the identity of the person contacting you. If someone reaches out via social media or pop-ups, always check the links, official channels, and website domains.

Be skeptical — too-good-to-be-true promises with no risk or guaranteed profits are almost always a red flag. And most importantly, never share your private keys.

How to avoid scams?

• Use hardware or cold wallets and enable two-factor authentication (2FA).
• Activate 2FA using authenticator apps instead of SMS.
• Always check the URL and SSL certificate—never click suspicious links.
• Research every project – look for reviews and credible media sources.
• Only invest what you can afford to lose, and avoid decisions driven by FOMO.
• Back up your data and regularly update your software and antivirus.
• Carefully review each transaction before approving it, especially with smart contracts – watch out for unnecessary permissions.

Stay informed and keep learning – follow verified sources and expert publications to stay up to date with trends in the crypto industry.

What to do if you become a victim of a scam?

• Immediately cut off all communication and save all evidence (chat history, transactions).
• Contact your crypto platform or wallet provider – if the transaction is recent, it might still be possible to block it.
• Report the scam to your local police or financial regulatory authority.

Notify your bank to help prevent further fraud or potential account freezing.

Does the bank refund money in case of fraud?

If you’ve fallen victim to fraud and the funds were transferred from your bank account, contact your bank immediately. In some cases, if the transaction hasn't been completed yet or if it can be proven that it was a scam, the bank may try to stop the payment or initiate a refund.

However, if you authorized the transaction yourself (even under deception), the bank is not always legally obligated to return the money. Still, many banks have internal procedures for such situations and may be able to assist if you act quickly.

How to trace a crypto scammer?

Tracking a crypto scammer can be challenging, as many use anonymous wallets, VPNs, and decentralized tools to hide their identity. However, there are ways to attempt tracking:

Blockchain analysis: Every crypto transaction leaves a record on the blockchain. With tools like Etherscan, Blockchain.com, or more advanced analytics platforms like Chainalysis, it’s possible to trace where the funds were sent.

Reporting to exchanges: If the funds end up on a centralized exchange, it's sometimes possible—via official requests from law enforcement or legal authorities—to obtain the user’s identity.

Reporting to authorities: Report the case to your local police, regulatory bodies, or specialized cybercrime units. There are forensic firms that specialize in tracing digital assets and work with authorities on complex cases.

While tracing may be possible, recovering funds is not guaranteed—especially if they’ve already been moved to private or “mixed” addresses. That’s why prevention remains the best defense.

Why would a crypto scammer send me money?

If a scammer sends you money—especially in cryptocurrency—it’s likely a manipulative tactic meant to draw you into a more complex scam. Here are some possible reasons:

Building false trust: The scammer may send a small amount to gain your trust and convince you to invest a larger sum later. This is common in romance or investment scams.

Money laundering: Sometimes, scammers use unsuspecting users to help hide transaction trails. If you receive unexplained funds from an unknown source, you could unknowingly become part of a money laundering chain and risk legal consequences.

"Mistaken" transfers: A scammer might ask for the money back after claiming it was sent to you by accident—directing you to a different wallet address. Once you send it, the funds are gone for good.

If you receive unexpected crypto from someone you don’t know, do not spend or return it without investigating. Contact your exchange or wallet provider, and report the incident to authorities. Most importantly, never share your private keys or personal information.

How to confuse a crypto scammer?

While it might be tempting to “play along” and try to confuse a scammer, the safest approach is always to avoid communication. Still, if you're trying to spot a scam early or cut the contact quickly, here are some tactics that might confuse them—while keeping you safe:

Ask specific questions: Inquire about the project, licenses, regulators, or company address. Scammers usually can’t provide credible answers.

Request identity verification: Ask for a video call or a company email address. Most scammers will stop responding.

Use technical language: Mention reviewing the smart contract on GitHub or using a hardware wallet with restricted permissions—this signals you’re not an easy target.

Delay your replies: Say things like “I’ll get back to you tomorrow.” Scammers prefer quick results and won’t waste time on someone hesitant.

However, the best option remains to ignore, block, and report them. Any conversation—even for fun—can unintentionally reveal personal details, so it’s better to stay safe.

What happens if I ignore a crypto scammer?

In most cases, if you ignore a scammer, they will eventually stop trying and move on to the next potential victim. Scammers rely on quick replies and emotional responses—if they don’t get them, they lose interest.

Should I just block a crypto scammer?

Yes, blocking a scammer is the fastest and safest option. As soon as you suspect a scam—whether it’s via email, message, social media, or an app—stop the conversation and block the contact. Also, report their profile to the platform they contacted you on. This helps protect other users as well.

Stay One Step Ahead of Crypto Scammers

The crypto world offers many opportunities—but also serious risks, especially for those new to digital assets. Understanding the most common types of scams is the first step toward safer participation in this space. While scammers are becoming more sophisticated, staying informed, thinking critically, and applying basic security measures can protect you effectively.

Remember: if something sounds too good to be true, it probably is.

Instead of rushing into emotional decisions or promises of easy profit, build the habit of asking the right questions, verifying sources, and using secure tools.
Your wallet, your responsibility.