Crypto Scams: Top 20 Types and How to Stay Safe
NFT_Noobie- 2 days ago
- 8 min read
Introduction
Cryptocurrency has transformed finance with its decentralized, secure transactions, but its popularity has made it a magnet for scammers. In 2024, cryptocurrency scams led to losses of approximately $9.9 billion, a 40% increase from 2023, according to Chainalysis. As we move well into 2025, the threat continues to grow, with scammers using increasingly sophisticated tactics, including artificial intelligence (AI) and social engineering. This article explores the top 20 cryptocurrency scams and provides actionable tips to protect your investments.
Top 20 Crypto Scams
Below is a detailed list of the 20 most prevalent cryptocurrency scams in 2025, based on data from sources like the DFPI Crypto Scam Tracker and TechTarget.
1. Pig Butchering Scams
Description: Known as "Sha Zhu Pan," these scams involve scammers building trust through fake romantic or social relationships before luring victims into fraudulent crypto investments.
How it Works: Scammers use dating apps or social media to establish trust, then introduce victims to fake trading platforms showing artificial profits. Victims invest more, only to lose everything.
Example: The International Accounting Bulletin notes pig butchering scams processed via platforms like Huione Guarantee, with losses growing 40% in 2024.
Losses: Significant, with individual cases like ANTRUSH causing $76,000 in losses.
2. Fraudulent Trading Platforms
Description: Fake platforms mimic legitimate exchanges to steal funds.
How it Works: Victims deposit funds, see fake profits, but cannot withdraw. Platforms may demand additional fees.
Example: Bit2meprojil.com defrauded investors of over $1 million, per DFPI.
Losses: High, with platforms like Accord Crypto and Apex Elite Trades causing significant damage.
3. Phishing Scams
Description: Scammers trick users into revealing wallet credentials via fake websites or emails.
How it Works: Victims receive emails or messages urging them to click links leading to phishing sites.
Example: Investopedia reported 300,000 victims in 2022, with $52.1 million in losses.
Losses: Widespread due to the ease of phishing attacks.
4. Romance Scams
Description: Scammers exploit fake romantic relationships to request crypto payments.
How it Works: After building trust, scammers claim financial distress or offer fake investment opportunities.
Example: Losses reached $735.8 million in 2022 and $652.5 million in 2023, per Investopedia.
Losses: Significant, often targeting vulnerable individuals.
5. Investment Scams
Description: Ponzi schemes, pyramid schemes, or fake ICOs promise high returns with low risk.
How it Works: Funds are misused or never invested, with early investors paid from new deposits.
Example: OneCoin defrauded investors of $4 billion, per Sumsub.
Losses: Billions, with ongoing risks in 2025.
6. Rug Pulls
Description: Developers abandon a crypto project after collecting funds.
How it Works: Hype is created, investments are collected, and developers disappear.
Example: The Squid coin scam caused $3 million in losses, per TechTarget.
Losses: Common in DeFi projects, with significant financial impact.
7. Cloud Mining Scams
Description: Fake services charge for non-existent mining equipment.
How it Works: Victims pay for mining contracts, but no mining occurs.
Example: HashOcean had no real infrastructure, per Sumsub.
Losses: Vary, but often in the tens of thousands per victim.
8. Giveaway Scams
Description: Scammers promise free crypto but require an initial payment.
How it Works: Victims send crypto to "verify" wallets, receiving nothing in return.
Example: Fake X posts by impersonated celebrities like Elon Musk, per Sumsub.
Losses: Widespread due to social media reach.
9. Blackmail/Extortion Scams
Description: Threats to expose sensitive information unless paid in crypto.
How it Works: Victims receive emails claiming hacked data, demanding crypto payments.
Example: Sumsub notes $20 billion in Bitcoin losses since 2018.
Losses: Significant, targeting individuals and businesses.
10. Fake Wallets
Description: Malicious wallet apps steal private keys or funds.
How it Works: Victims download fake apps that extract sensitive data.
Example: A fake Trezor app on Google Play, per Sumsub.
Losses: Vary, but can be total for affected wallets.
11. Cryptojacking
Description: Malware uses victims’ devices to mine crypto without consent.
How it Works: Malware runs in the background, consuming resources.
Example: Fake Adobe Flash updates, per Sumsub.
Losses: Indirect, through resource theft and electricity costs.
12. Blockchain Attacks
Description: Attacks like 51% attacks manipulate blockchain transactions.
How it Works: Attackers control majority mining power to double-spend or block transactions.
Example: Ethereum Classic attack in 2020 stole $5.6 million, per Sumsub.
Losses: Significant for smaller blockchains.
13. Flash Loan Attacks
Description: Exploiting DeFi platforms with large loans to manipulate markets.
How it Works: Loans are used to inflate token prices, then sold off, draining liquidity.
Example: Platypus Finance lost $8.5 million in 2023, per TechTarget.
Losses: High in DeFi ecosystems.
14. AI-Enabled Scams
Description: AI creates convincing fake content, like deepfake endorsements.
How it Works: AI-generated videos or emails promote fake investments.
Example: Deepfake celebrity endorsements, per Chainalysis.
Losses: Growing with AI advancements.
15. Bitcoin ATM Scams
Description: Victims are tricked into depositing cash into ATMs for scammers.
How it Works: Scammers pose as legitimate entities, directing cash deposits.
Example: $65 million lost in 2024, per TechTarget.
Losses: Significant, especially among elderly victims.
16. Job Scams
Description: Fake job offers involve crypto handling or upfront fees.
How it Works: Victims pay for "training" or invest in fake companies.
Example: North Korean scams caused $3 billion in losses, per TechTarget.
Losses: High, targeting job seekers.
17. Man-in-the-Middle Attacks
Description: Scammers intercept communications to steal wallet data.
How it Works: Fake Wi-Fi or compromised devices capture sensitive information.
Example: Public Wi-Fi attacks, per TechTarget.
Losses: Vary, depending on stolen data.
18. Ransomware
Description: Malware locks files, demanding crypto payments.
How it Works: Victims pay to regain access to encrypted files.
Example: WannaCry in 2017 demanded Bitcoin, per Sumsub.
Losses: $456 million for businesses in 2022.
19. Pump-and-Dump Schemes
Description: Scammers inflate crypto prices before selling, causing crashes.
How it Works: Coordinated buying attracts investors, followed by a sell-off.
Example: GIZMOcoin scheme or Hawk Tuah ($HAWK) , per Sumsub.
Losses: Significant for late investors.
20. Hacking
Description: Direct theft from exchanges or wallets via vulnerabilities.
How it Works: Hackers exploit software flaws or phishing to steal funds.
Example: Sky Mavis hack in 2022 lost $600 million, per TechTarget.
Losses: Massive, especially for exchanges.
Honorable Mention: NFT Scams
Non-fungible tokens (NFTs) have become a significant part of the cryptocurrency ecosystem, representing unique digital assets like art, music, or collectibles. However, their popularity and lack of regulation make them a prime target for scammers in 2025. According to the U.S. Department of the Treasury, NFTs are highly susceptible to fraud and theft, often used to launder illicit proceeds. Below are the most common NFT scams and strategies to avoid them.
Common Types of NFT Scams
Phishing: Scammers create fake websites or send emails mimicking legitimate NFT platforms to steal wallet credentials or private keys. For example, fake OpenSea websites trick users into connecting their wallets, per Norton.
Fake NFTs: Fraudsters sell counterfeit or plagiarized digital assets as authentic, often at a fraction of the price of genuine NFTs. Cloudwards highlights cases where stolen art is sold as NFTs.
Rug Pulls: Creators raise funds by selling NFTs and then abandon the project, leaving investors with worthless tokens. A notable case involved a $1.1 million rug pull in 2022, per The CPA Journal.
Pump-and-Dump Schemes: Scammers artificially inflate NFT prices through coordinated buying, then sell off, causing prices to crash. NFT Evening notes this tactic in 2025 markets.
Social Engineering: Fraudsters build trust via social media, such as X, to scam users out of NFTs or cryptocurrency. For instance, rapper Waka Flocka Flame lost $19,000 in an NFT scam, per NFT Evening.
Malicious Smart Contracts: Some NFTs use exploitative smart contracts that drain funds from wallets when interacted with, per SimpleHash.
How to Protect Against NFT Scams
Verify Creators and Projects: Research NFT creators, checking their social media, whitepapers, and community feedback. Use platforms like OpenSea, Rarible or Magic Eden with verified accounts.
Secure Wallets: Store NFTs in hardware wallets like Ledger and enable 2FA to prevent unauthorized access.
Avoid Unsolicited Offers: Be cautious of deals promising free NFTs or high returns, especially via unsolicited messages on platforms like X.
Check for Stolen Art: Use reverse image searches to ensure the NFT isn’t plagiarized before purchasing.
Use Reputable Platforms: Trade on established marketplaces like OpenSea or Rarible, which have scam reporting systems.
Report Scams: Notify platforms and authorities like the FTC if you encounter fraud.
Stay Informed: Follow trusted sources like NFT Evening for updates on scam trends.
Impact of NFT Scams
The NFT market generated o,ver $23 billion in trading volume in 2021, per NFT Evening, but scams have caused significant losses. For example, an NFT collector lost $2.2 million in 2022, per Fraud.com. The lack of regulation and the fear of missing out (FOMO) drive these scams, making vigilance essential.
Protection Strategies
To safeguard your investments, consider these strategies:
Education: Understand scam tactics to spot red flags. Resources like Sumsub offer insights.
Verification: Check platform legitimacy via official channels and reviews.
Secure Wallets: Use hardware wallets and enable 2FA.
Cautious Communication: Verify unsolicited messages and avoid sharing sensitive data.
Research Investments: Review whitepapers and team backgrounds. Avoid high-return promises.
Reputable Exchanges: Use platforms like OKX, Binance, Kraken or Coinbase.
Device Security: Update software and use antivirus to prevent cryptojacking.
Skepticism of Giveaways: Legitimate giveaways don’t require upfront payments.
Report Scams: Contact authorities like the FTC or local agencies.
Stay Informed: Follow trusted sources for updates on scam trends.
Detailed Scam Data
The following table summarizes key scams, their descriptions, examples, and reported losses:
Scam Type | Description | Example | Reported Losses |
Pig Butchering | Fake relationships lead to fraudulent investments | ANTRUSH ($76,000) | $9.9B total in 2024 (Chainalysis) |
Fraudulent Trading Platforms | Fake platforms steal deposits | Bit2meprojil.com ($1M+) | Varies, often millions |
Phishing Scams | Fake websites/emails steal credentials | Fake exchange emails | $52.1M in 2022 (Investopedia) |
Romance Scams | Fake relationships exploit trust | Fake investment opportunities | $652.5M in 2023 (Investopedia) |
Investment Scams | Ponzi schemes/fake ICOs promise high returns | OneCoin ($4B) | Billions globally |
Rug Pulls | Developers abandon projects after collecting funds | Squid coin ($3M) | Common in DeFi |
Cloud Mining Scams | Fake mining services charge for non-existent equipment | HashOcean | Tens of thousands per victim |
Giveaway Scams | Fake promises of free crypto require payment | Fake Elon Musk X posts | Widespread |
Blackmail/Extortion | Threats to expose data unless paid | Email threats ($20B since 2018) | Significant |
Fake Wallets | Malicious apps steal private keys | Fake Trezor app | Varies |
Cryptojacking | Malware mines crypto on victims’ devices | Fake Adobe Flash updates | Indirect (resource theft) |
Blockchain Attacks | 51% attacks manipulate transactions | Ethereum Classic ($5.6M in 2020) | Significant for smaller blockchains |
Flash Loan Attacks | DeFi exploitation via large loans | Platypus Finance ($8.5M in 2023) | High in DeFi |
AI-Enabled Scams | AI creates convincing fake content | Deepfake endorsements | Growing with AI advancements |
Bitcoin ATM Scams | Victims deposit cash into ATMs for scammers | Fake exchange verification ($65M in 2024) | Significant, especially for elderly |
Job Scams | Fake jobs involve crypto handling | North Korean scams ($3B) | High |
Man-in-the-Middle Attacks | Intercepted communications steal data | Public Wi-Fi attacks | Varies |
Ransomware | Malware locks files, demands crypto | WannaCry (2017) | $456M for businesses in 2022 |
Pump-and-Dump Schemes | Artificially inflate prices, then sell | GIZMOcoin | Significant for late investors |
Hacking | Direct theft from exchanges/wallets | Sky Mavis ($600M in 2022) | Massive |
Conclusion
Cryptocurrency scams are a significant and evolving threat, but with vigilance and knowledge, you can protect yourself. By understanding the tactics used by scammers and implementing robust security measures, you can navigate the crypto landscape safely. Stay informed, verify everything, and report suspicious activity to authorities or respective platforms.
And remember: Never, ever share your private key or your passphrase (12-24 words). If something is too good to be true, then it is probably a scam. And with NFT trading - real customers will NEVER contact you privately, least of all if they have problems with the purchase. Use only official platforms and never accept "verification" and trading outside of official platforms, especially if the same email address is something@gmail.com, for example.
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