Top 9 Crypto Scams

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1 year ago
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Scammers are increasingly exploiting both new and traditional methods to steal money using cryptocurrency. Here are some popular cryptocurrency scams.

1. Bitcoin investment schemes

  • Scammers approach participants in bitcoin investment schemes under the pretence of being seasoned “investment managers”

  • As part of the scam, the so-called investment managers make extravagant claims about their success in investing in cryptocurrencies

  • The scammers demand payment up front to begin

  • The thieves then simply steal the upfront payments rather than make money

  • In order to access someone’s cryptocurrency, the scammers may also ask for personal identity information under the pretence that they need it too

2. Rug pull scams

  • In rug pull scams, scammers “pump up” a new business, NFT, or coin to attract investors

  • The scammers simply vanish with the money after obtaining it

  • These investments’ software forbids anyone from selling bitcoin after buying it, leaving them with a worthless investment

  • The Squid coin scam, which took its name from the well-liked Netflix comedy Squid Game, is a common variation of this scam

  • To earn cryptocurrency, investors had to play

3. Romance scams

  • Cryptocurrency scams are not new to dating apps

  • These frauds involve relationships that are established gradually over time, usually through long distances and only online communication

  • One party gradually persuades the other to give or purchase money in cryptocurrency

  • Once they have your money, the dating scammer vanishes

  • These frauds are additionally known as “pig butchering scams”

4. Phishing scams

  • Phishing scams are still widely used

  • Scammers send emails with malicious links to a fake website in order to collect personal information, such as the private key for a bitcoin wallet

  • Users of digital wallets just only receive a single, unique private key, unlike passwords

  • It is difficult to replace a stolen private key

  • Since each key is exclusive to a wallet, a new wallet must be made in order to change this key

5. Man-in-the-middle attack

  • Scammers are able to access bitcoin users’ private information when they log in from a public place

  • Any data exchanged over a public network, including passwords, bitcoin wallet keys, and account information, is susceptible to interception by scammers

  • A hacker can obtain this private information whenever a user is logged in by employing a man-in-the-middle attack strategy

  • When trusted networks are nearby, Wi-Fi signals from those networks are intercepted

6. Social media cryptocurrency giveaway scams

  • Social media sites are flooded with fake posts that advertise bitcoin giveaways

  • To entice consumers, some of these scams also use fake celebrity accounts to promote the offer

  • However, when a user clicks on the promotion, they are transferred to a fake website that requests verification in order to send them a bitcoin

  • Making payment as part of the verification process demonstrates the legitimacy of the account

  • The victim runs the risk of losing this payment or, even worse, clicking on a malicious link that results in the theft of their personal data and bitcoin

7. Ponzi scheme

  • Ponzi schemes pay their older investors out of the earnings of new investors. Bitcoin will be used by cryptocurrency scammers to entice new investors

  • Since there are no reliable investments, the strategy is a money-making scheme that goes in circles

  • The promise of huge profits with little risk is the core allure of a Ponzi scheme

8. Employment offers and fraudulent employees

  • In order to gain access to bitcoin accounts, scammers will often pretend to be recruiters or job searchers

  • By using this trick, they provide a compelling job while demanding cryptocurrency in exchange for work training

  • Scams involving the use of remote employees exist as well

9. Fake cryptocurrency exchanges

  • Scammers might entice investors with claims of a fantastic cryptocurrency exchange or even extra bitcoin

  • However, there isn’t really an exchange, and the investor doesn’t realize it’s a scam until they’ve already lost their money

  • To avoid an unfamiliar exchange, stick to well-known cryptocurrency exchange marketplaces like Coinbase,, and Cash App

  • Before entering any personal information, do some research and look for information on the exchange’s repute and legitimacy on industry websites




None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.

Please note that the tech industry evolves rapidly and the info in this article is correct at the time of publishing. As Heraclitus said, “Change is the only constant,” so if anything sounds old or off, please holler on the socials or comment here so everyone stays peeled.

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Avatar for magnolius
1 year ago