Crypto scams: the most common tricks and how to spot them

Crypto moves fast, can't be reversed, and is still new to most people. That combination makes it a favourite tool for scammers. The good news: nearly every crypto scam relies on the same handful of tricks, and once you know them they become easy to spot.

1. Fake investment platforms

You're shown a slick website or app with a dashboard that says your balance is growing fast. Small withdrawals may even work at first, to build trust. When you try to take out a larger amount, you're told to pay a "tax", "fee" or "unlock deposit" first. The money was never invested; the dashboard is fake.

• Warning signs: returns that are steady and high every day, a platform you can't find on any regulator's register, support that only talks on WhatsApp or Telegram, and new fees whenever you try to withdraw.
• What to do: only use exchanges that are registered with the financial regulator in your country, and type their address yourself rather than following a link.

2. Relationship and "pig butchering" scams

A friendly stranger messages you, often after a "wrong number" text or on a dating or social app. Over weeks they build trust, then mention they make good money trading crypto and offer to show you how. They steer you to a fake platform (see above). The name comes from "fattening up" the victim before taking everything.

• Warning signs: someone you've never met in person bringing up investing, refusing video calls, and guiding you step by step into a specific app.
• What to do: never take investment advice from someone you only know online. Talk to a friend or family member before sending any money.

3. Giveaway and impersonation scams

"Send 1 ETH and we'll send back 2." These posts, videos and live streams use the names and faces of famous people or companies, sometimes with deepfake video. No genuine giveaway asks you to send crypto first.

• Warning signs: doubling offers, countdown timers, verified-looking accounts with odd usernames, and comments full of "it worked for me!".

4. Phishing and wallet drainers

A message says your wallet or exchange account has a problem, or that you qualify for an airdrop. The link opens a copy of a real site that asks for your seed phrase, or asks you to "connect your wallet" and sign a transaction that quietly gives it permission to empty your wallet.

• Warning signs: urgency ("your account will be locked"), any request for your seed phrase or private key, and links in direct messages, emails or search ads.
• What to do: no real company will ever ask for your seed phrase. Bookmark the sites you use, read what a transaction does before you sign it, and periodically remove old token approvals in your wallet.

5. Pump and dumps and rug pulls

A new token is hyped hard on social media. Early holders (often the creators) sell once the price jumps, leaving everyone else with a token that collapses. In a rug pull, the developers simply drain the project's funds and disappear.

• Warning signs: anonymous teams, huge promised returns, a few wallets holding most of the supply, pressure to buy "before it moons", and liquidity that isn't locked.

6. Ponzi and "high-yield" schemes

Some schemes pay early investors with money from newer investors and call it "staking rewards", "arbitrage bots" or "AI trading". They work until new money slows down, then they collapse. Multi-level recruitment bonuses are a common sign.

7. Fake support and recovery scams

After a loss, victims are often contacted by "recovery experts", "blockchain investigators" or fake law firms that promise to get the money back for an upfront fee. This is a second scam aimed at people who were already scammed. Real police and regulators don't charge you to investigate.

How to protect yourself

• Slow down. Scams depend on urgency. A real opportunity will still be there tomorrow.
• Never share your seed phrase or private keys with anyone, ever.
• Check that a platform is registered with your financial regulator before you deposit.
• Don't move money because of a message, call or ad you didn't expect.
• If it sounds too good to be true, it is.

If you think you've been scammed, read Scammed? What to do in the first 24 hours. Acting quickly gives you the best chance of limiting the damage.