Crypto Scammers Hard at Work: 8 Types of Scams to Look Out For

As the popularity of cryptocurrencies like Bitcoin and Ethereum continue to grow, so does the number of scams targeting users. Whether you’re looking to invest in a new cryptocurrency or use one for transactions, it’s essential to be aware of the different types of scams out there. This blog post will discuss eight common types of cryptocurrency scams and how to avoid them. Stay safe out there!

What are the types of cryptocurrency scams?

Fake wallets

Cryptocurrency wallets are used to store your coins and track your transactions. While some say cryptocurrency may be the future of money, it’s important to remember that not all crypto wallets are created equal. Unfortunately, plenty of scammers out there are more than happy to take advantage of unsuspecting investors. So, beware of fake or malicious wallets that can steal your coins. 

Here are a few tips to help you avoid fake crypto wallet scams:

  1. Do your research. When choosing a crypto wallet, be sure to do your homework and only select one that comes from a reputable source.
  2. If a wallet seems too good to be true – for example, if it offers unusually high-interest rates – it probably is.
  3. Keep your private key safe and secure. Your private key is what allows you to access your cryptocurrency, so you must keep it safe and secure. Avoid sharing it with anyone and only store it in a secure location.

Phishing scams

In the cryptocurrency world, these are emails or messages sent by hackers impersonating a cryptocurrency exchange or wallet service and asking users to click on links or download attachments that contain malware designed to steal login information and private keys. In addition, these emails often come with urgent requests for immediate action or threats of account suspension if the user does not comply with their request within a specific timeframe. 

Be very careful when clicking on links or providing personal information online.

Phishing prevention tips are the same for crypto scams as typical scams:

  1. Make sure that you are only visiting websites that you trust. If you’re unsure about a website, do some research to ensure it’s legitimate before entering any information.
  2. To steal your private key, scammers often try to trick you into clicking on a malicious link or downloading a fake wallet app. Be vigilant and never click on links or download files from unfamiliar sources.
  3. Never give out your personal information or login credentials to anyone online. No reputable company will ever ask for your private keys. If you receive an email that asks for this information, it is almost certainly a scam.

Fake ICOs

An ICO (initial coin offering) is when someone sells a cryptocurrency to investors in exchange for money or other cryptocurrencies. The person doing the ICO usually has a project they want to fund, and if they get enough money, the project will be successful.

See: What Is an Initial Coin Offering (ICO)?

But beware of fake ICOs that are nothing more than scams. These scam artists often promise guaranteed returns or use other marketing tactics to lure you in. 

There are a few key things to look for when trying to avoid fake ICOs: 

  1. First, be sure to do your research on the team behind the project. Is the team experienced in the space? Do they have a good track record? The more you know about the team, the better. 
  2. Second, look at the project itself. Is it solving a real problem? Does it have a strong use case? Avoid projects that seem too good to be true. 
  3. Lastly, pay attention to red flags. If an ICO seems overly complicated or if there is little information available about it, it’s best to steer clear.

Pump and dump schemes

In a pump and dump scheme, scammers artificially inflate the price of a cryptocurrency through false and misleading statements. They also use crypto influencers to advertise the new cryptocurrency they created to their social media followers in hopes they will buy in. Once the cryptocurrency reaches the desired value, the scammers coordinate, and they then “dump” their coins on unsuspecting investors at a higher price. This leaves investors with worthless coins and can cause the currency’s value to crash.

These scams are simple to manufacture with cryptocurrencies because it is relatively easy to find crypto assets that barely trade on exchange platforms. They can also easily create a new crypto asset themselves. All they need is basic coding knowledge and a few hours of research. 

See: How to Spot a Pump-and-Dump Cryptocurrency Scam

So, what should you look out for to spot early on a pump-and-dump scheme?

  1. As always, do some research. Start by looking at the coin’s whitepaper through the Whitepaper Database. A cryptocurrency whitepaper should contain technical, financial, and commercial information to explain what they plan to do with their project and to attract investors. Don’t hesitate to compare new projects with well-established ones like Bitcoin and Ethereum to understand better what a good Whitepaper should look be. After reading through the whitepaper, you should have a better sense of the long-term potential for the cryptocurrency to go up in value.
  2. Look at who and what kind of person is talking about that cryptocurrency and promoting it. If it’s a random traveling influencer, it’s probably best to assume that it’s not a legitimately sound investment. 
  3. Social media platforms are remarkable for their advertisement capabilities. Scammers have been using them to their advantage for a while now, and there is no indication they will stop. If you come across a potential crypto asset investment on social media, always double-check if it’s a legitimate project. Look for a website and social media page on your own. Never trust adds. 
  4. You should check the trading volume to see if it has increased recently. If it has, be careful because it might signify that someone is trying to manipulate the price. You might also see big groups of buyers or sellers, which means that a big group is trying to control the asset’s price.

Ponzi and pyramid schemes

Ponzi and pyramid schemes have been around for centuries. They are nothing new. However, with the rise of cryptocurrency, these schemes have taken on a new form. In a traditional Ponzi scheme, investors are promised high returns with little risk. In a Ponzi scheme, scammers use money from new investors to pay out old investors. This method creates a “pyramid” structure, with the early investors getting paid off by the new investors.

While some legitimate investments use this structure, most of them are scams. These schemes eventually collapse when there are not enough new investors to keep paying out the old ones, which leaves many people losing their money.

Crypto Ponzi schemes work similarly. However, instead of using traditional investments, they use cryptocurrency. This can be anything from Bitcoin to lesser-known altcoins. These schemes often promise high returns with little to no risk. They may also claim to offer “investment opportunities” that are too good to be true.

Anonymous people often run these schemes. They may have a website or social media account, but tracking them down is challenging, making it even harder to get your money back if you invest in one of these schemes.

The best way to avoid crypto Ponzi and pyramid schemes is to be very careful about who you give your money to. It is probably a scam if someone is promising you high returns with little to no risk. Also, be sure to do your research before investing in any cryptocurrency-related project. There are many reputable exchanges and wallets, so be sure to use them.

See: SEC Charges Eleven Individuals in $300 Million Crypto Pyramid Scheme.

Cloud mining scams

Cloud mining scams have been around for a while now and are only becoming more common. These scams promise big profits for little to no work, but they steal your money. 

Cloud mining scams work by promising big profits for little to no work. These scams often promise tremendous returns for a small investment, but in reality, they steal your money. The scammer will often ask you to send them money to start mining, but once you do, you will never see that money again. They will also likely promise to pay you back with profits from the mining, but again, this is just a way to steal your money.

There are a few ways to avoid these scams:

  1. Be very careful about who you’re sending money to. If you don’t know the person or company well, it’s best not to send them any money.
  2. Do your research before investing in any mining operation. Make sure that the company is legitimate and has a good reputation.
  3. Don’t invest more money than you can afford to lose.

If something sounds too good to be true, it probably is.

‘Pig Butchering’ Crypto scams

Pig butchering is a new scam that is going around. This type of fraud is a mix of a romance scam and an investment scheme. It is a type of fraud in which the scammer poses as a potential love interest on social media or dating websites. This trend started in Southeast Asia, where it got its name from how hogs are “fattened up” before being killed. In this case, the victims get “slaughtered” when the fraudsters convince them to invest in a phony cryptocurrency platform and disappear with their money.

So how does this scam work, exactly? Well, it all starts when the victim meets their perpetrator online—usually on a dating site or social media platform. They will often begin by saying flattering things to their victim. The two build up a relationship over time, and eventually, the fraudster convinces their mark to invest in a new cryptocurrency they’ve heard of or that they’re developing. They might even go so far as to set up a fake website or whitepaper to make the scam seem more legitimate. 

While this type of scam might seem like a long shot, it’s surprisingly common. Numerous reports have been of people being taken for hundreds of thousands of dollars by pig butchers posing as potential romantic partners. A Bay Area man lost $1.2 million in a cryptocurrency scam that’s targeting Silicon Valley investors.

See: ‘Pig slaughtering’ crypto scams reap millions on Silicon Valley dating apps.

So how can you protect yourself from this type of scam? The best way to avoid being duped is to be aware of the red flags that indicate you might be dealing with a fraudster. For example, be wary of anyone who:

  1. Asks you for money or investment advice
  2. Pushes you to make decisions quickly
  3. Seems too good to be true
  4. Refuses to video chat or meet in person
  5. Asks for personal information like your address or Social Security number

If you suspect you might be dealing with a fraudster, the best thing to do is to cut off all communication immediately.

Crypto recovery services scams

A new type of scam has targeted cryptocurrency users in recent months. This scam, known as a “crypto recovery scam,” tricks users into sending money to scammers to recover their lost or stolen cryptocurrency. 

Crypto recovery scams typically involve the scammer contacting the victim and offering to help them recover their lost or stolen cryptocurrency. The scammer will often claim to be a member of a recovery team or an expert in blockchain technology. They will then ask the victim to send them a small amount of money to cover the costs of recovering the lost cryptocurrency. Once the victim sends the money, the scammer will disappear, and the victim will never hear from them again.

There are a few red flags to watch out for if you think a crypto recovery scam may have targeted you:

  1. The scammer contacts you out of the blue – If you receive an unsolicited message from someone offering to help you recover your lost cryptocurrency, this is a major red flag.
  2. The scammer asks for a fee – Recovery teams or experts should not charge you a fee for their services upfront.
  3. The scammer promises guaranteed results – No one can guarantee that they will be able to recover your lost cryptocurrency. If someone claims that they can, this is a scam.


The best way to avoid any scam is to be well-informed and vigilant. Do your research before investing in any cryptocurrency, and only use trusted sources of information. If something sounds too good to be true, it probably is. Finally, always be cautious when sharing your personal information or financial details online.

Cryptocurrency scams are becoming more and more common as the popularity of Bitcoin, and other cryptocurrencies continue to grow. But by being aware of the different types of scams, you can protect yourself from becoming a victim. Stay safe out there!

If you think a cryptocurrency scam may have targeted you, there are a few things you can do:

Report the scam to the authorities – If you have been scammed, you should report the incident to your local law enforcement, regulation entities, and other bureaus using these links:

Warn your friends and family: If you know someone a cryptocurrency scam has targeted, warn them about it and tell them how to avoid it.

Also, don’t forget to report the fraud to whatever crypto exchange you used to complete the crypto transaction whenever you suspect or have evidence that bad actors are at play.

Did you find this blog post helpful? Please share it with your friends on social media! And be sure to check out our other blog posts for more great tips and advice. 

Thanks for reading!

23 Responses

  1. Alan Bennett says:

    I have been scammed with a crypto trader who claimed to be an Australian Company called Heron even supplying ACN and ASIC Certificate. I and a number of my friends were taken in by this group claiming to work from Heron Tower in Bishopsgate London.

    • Jasper says:

      So… Did you get your money back?… I think I know someone who can help you

      • Naime says:

        It was not an easy task getting my money back, I had to contact Fort Solution Tech through Google

      • Omar Khedr says:

        Did any one deal before with Norman Shield compeney for refund his money? Is the are trusted or not as i Sent them money to refund my money but they are not ANSWER now

  2. Jessica king says:

    Erin rice tried to sell Mr a msltipoo that had already been sold the week before. Facebook page Erin Rice he lives in Acworth, GA. But had a Nevada 1 949)281-8789. He told me about uno male 14 weeks old. He usually sell th for 1000 but he needed money to pay for some repairs around the house. So I gave him my info, he texted me Sunday while I was in church. I told him I would call once I got home, he texted me back and said he wasn’t feeling well that he was going to bed and I could text him on Moday. He also said that we sounded like good people that uno would love us, and he knew we vould not pick him up today but next weekend so he would hold uno for us, so I texted him and said I can pick him up Tues after my therapy I will call you when I get on the road, so he said my mom is my Uber since I had an accident in my fj cruiser, a truck hit him, then he arranged to meet me at Cabela’s Acworth , GA, that where he meets all his clients purchasing a puppy. So I look up the address 152 Northpoint parkway, Acworth, GA. So I texted him on Monday to see was this a the meeting place, no text from him on Monday at all .Tues I text him and said hello Don’t disappoint me Erin, I will be there today at the Caleba’s, so after 2 hrs had pass he texted me and said I didn’t hear from you all day Sunday and uno is no longer, so I text him back to say I texted you Sunday evening and told you I was praying for you to get better and I would be there Tues, so when did you have time to sell uno to someone else, besides I call his phone several times on Monday and it said his voice-mail was full.finally my husband got in touch with his wife and she knew nothing about me ever calling she told my husband Erin sold the puppy week before last.

  3. Akash says:

    Some of the best ways to get your scammed money back is to contact good recovery agencies

  4. Jigg says:

    A very nice website with a lot of good information

  5. Anthony says:

    I was scammed by Roobecoins,com and contacted them by a recovery company. They also wanted a lot of money to be paid before recovering. All fake and scam.

    • Bryanzwalker says:

      Get a better recovery expert it cost you less. And you get your funds back. It’s works

  6. I’m so glad I ran onto these posts y’all posted!! I have been dealing with I believe for certain now after reading your blogs that this crypto mining I been involved in last 18 mths is a total fraud and we got hacked on our home computer and whomever it is has tried ruining my wife and my name in our small farming community!! We’ve farmed here my 54years and my dad and his dad so we are small farmers but very honest and the scammers tried getting to our debit cards bank accounts and social media stating that I had warrants on me for Unbelievable things and my wife as well!! Thank God no one believes them!! This all happened because I wouldn’t give in and give them money and id pretty much told the person in an email that I’d never give in!! They are trying even harder right now!!

  7. Tom Warrel says:

    I was a victim of a scam, at the time I was diagnosed as being near to a total mental breakdown over this and treated for severe anxiety and depression. The medication was strong and I was blanked out of normal life completely having gone through numerous personal issues and with hindsight should have stayed well away from Bitcoin. All the warning signs I ignored and had many disagreements with the bank telling me this was fraudulent but I wanted mothing to do with and continued with my actions.
    Not knowing what to do or where to go or how to explain this to anyone I finally found and embarrassingly reached out to an American Cyber Intelligence firm.
    I supplied details of what I did so that they could trace the movement of my assets.
    According to the information I provided I was the victim of a fraudulent property crime and the equivalent of £69,631 GBP ($82,277 USD) was stolen from me.
    Through forensic analysis, they identified the information needed to ascertain the identity of the suspect. They prepared letters to contact the identified entities who, upon request from law enforcement, can provide the names and location of the suspects in my case. This report includes a detailed technical analysis of the movement of the assets and thorough explanation of the findings reached by forensic examination of the transactions provided by me.
    I supplied a list of nine transactions that were initiated to send Bitcoin to a suspected fraudulent.
    I lost a total of 3.82163 BTC.
    This sum is approximately equivalent to £69,631 GBP ($82,277 USD).
    I was given documents to send to UK Law Enforcement, had an interview, passed on to Fraud Office but came to nothing as they were not interested and Fraud Office say they will not follow up the requests either.
    I have now stabilised mentally and feel need to follow this up again, but still haven’t any clue how? But I did see a name offered from other posts which may be able to help me.

  8. divine says:

    i have been trying to get my stolen funds back until an old friend told me about Rapid Responder who helped me recovered my fund . They are 100% trust worthy and they will recover fund within a week. check them out at rapidresponder .net

  9. Owen says:

    These cryptocurrency scams are a real thing. I never believed I could fall victim to one until it was already too late. I got tricked by some lady and I ended up losing all of my savings when i indeed thought I was making really good investments. These scams leave you dry and helpless because they never return our money.
    We victims are now very lucky with the many developments in blockchain and recoup technology. Many of us have been able to recoup our losses and even at no cost. It was Finec Royal Tech who helped get all I lost back and they demanded no upfront payments. There is really hope for us victims.

  10. Saffron Mine says:

    There are too many fraudulent websites out there. Beware full when investing your money. It is really easy to make mistakes. If you find yourself in a position where you’re being scammed on fake investments platforms there are hackers that can recover your money for you. I know a very trust worthy recovery tech company.

  11. Kalinie says:

    Anyone knows the name Mr John Smith, from Kargoo Delivery company?

  12. William says:

    Plus one five seven four three zero zero seven nine one five text on w/app for help she helped me when I go scammed by my broker

Leave a Reply

Your email address will not be published. Required fields are marked *