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Cryptocurrencies like Bitcoin and Ethereum have transformed how we think about money by giving us new, decentralised methods to invest. But since cryptocurrencies are so popular, scammers have also taken advantage of the crypto space’s lack of rules, anonymity, and inability to change things. In 2024, crypto scams produced about $9.9 billion. If more unlawful wallets are identified, this value might go up to $12.4 billion. It’s crucial to keep aware because of the increase of AI-driven frauds and platforms like Huione Guarantee that enable people perpetrate fraud. This book talks about frequent crypto scams, how to recognise them, and good strategies to keep your money safe. It provides information that is helpful for investors of all levels.
How to Spot Crypto Scams
Cryptocurrency scams are fraudulent plans that try to steal digital assets by getting people to send cryptocurrency to bad wallets or give out private keys. Scammers love the crypto ecosystem because things like blockchain’s transparency, the fact that transactions can’t be undone, and the fact that there is no central authority. Scammers employ emerging technologies like AI and social media sites (like Telegram and TikTok) to make their schemes look authentic. Chainalysis says that 63% of all illicit transactions are done with stablecoins because they are quick and don’t have many rules.
The influence on money is huge. According to the FBI, Americans lost over $9.3 billion to crypto fraud in 2024. Scams can be as simple as phishing emails or as intricate as pig butchering, which is a type of investment fraud that also uses psychological manipulation. The first step to preserving your assets is to know about these risks.
Common Types of Crypto Scams
| Scam Type | Description | Examples/Case Studies |
| Phishing Scams | Fake websites or emails that seem like real services to get your login information or private keys. | A bogus Arkadiko Finance site took $100,000 from a victim in California. |
| Ponzi Schemes/High-Yield Investment Programs (HYIP) | Offer high profits, pay early investors with money from new investors, and then go out of business when new investors stop coming in. | In 2024, HYIPs made up 50.2% of all scam money. |
| Rug Pulls | Developers promote a token, get people to invest, and then leave the project, taking the money with them. | The Kokomo Finance rug pull on Ethereum’s Optimism network took $5.5 million. |
| Pig Butchering Scams | Scammers gain people’s trust, frequently through romantic connections, and then try to sell them bogus crypto assets. | A woman from Maryland lost millions in April 2025. Since 2020, an estimated $75 billion has been stolen. |
| AI-Generated Deepfake Scams | AI makes phoney films and audio of people you trust to get them to transfer you crypto. | From March 2024 to January 2025, a deepfake film of Elon Musk made $5 million. |
| Crypto Wallet Drainer Attacks | Malicious scripts or websites steal money by getting people to sign transactions. | There will be a 135% rise in drainer interest on the dark web in 2025. |
| Imposter Scams | Scammers pretend to be businesses or people to get people to give them money or invest in crypto. | There are bogus giveaways on X and YouTube that use deepfakes of Elon Musk and Donald Trump. |
| Pump-and-Dump Schemes | Through coordinated trading, raise token prices artificially, then sell, producing a crash. | The Meteora hoax cost people $69 million between December 2024 and February 2025. |
A Few Important Examples
The Meteora Scam: A class-action lawsuit said that the people who made the Meteora token were executing a pump-and-dump scheme, which made the token’s price go up before they sold it, costing investors $69 million between December 2024 and February 2025.
The designers of this DeFi loan technology switched to malicious code, taking $5.5 million and destroying all signs of the project.
Pig Butchering: These scams started in Southeast Asia and include people pretending to be romantic partners or friends on applications like Tinder or WhatsApp. They gain people’s trust over weeks or months before proposing fake crypto investments. In 2024, pig slaughtering scams made up 33.2% of all scam earnings in the world. This was a 40% rise from the year before.
You should know what red flags are so you don’t get scammed. These are crucial things to keep an eye out for:
Promises of Guaranteed profits: Real investments come with risks, so you should be careful of offers of “zero risk” or huge profits.
Be mindful of investment advice you obtain through email, social media, or messaging apps like Telegram that you didn’t ask for.
Scammers put pressure on you to respond quickly by saying things like “Invest now or miss out!” to encourage you to stop thinking.
Unclear project requirements, missing whitepapers, or teams who haven’t been confirmed are all signs that something is wrong.
Requests for Sensitive Information: No legitimate service will ask for your private keys or seed phrases.
Fraud can happen on websites or apps that are badly designed, include spelling mistakes, bad graphics, or URLs that look suspicious (such sites that are spelt wrong).
Social Media Hype: If there is a lot of advertising on sites like TikTok or X, especially if celebrities are involved, it could be a pump-and-dump.
The North American Securities Administrators Association (NASAA) believes that in 2025, Facebook, Telegram, and TikTok are some of the biggest areas where crypto frauds happen. These scams often leverage AI to make themselves seem more trustworthy.
How to Avoid Getting Scammed with Crypto
You should do everything to keep your investments safe. Here are some helpful things you may do to stay safe:
Do a lot of research to make sure that teams, initiatives, and platforms are legitimate. Check out the team’s credentials, whitepapers, and reviews on the web. One of the various tools you can use is the DFPI Crypto Scam Tracker (https://dfpi.ca.gov/consumers/crypto/crypto-scam-tracker/).
Use Trusted Exchanges and Wallets: Stick to well-known sites like Coinbase or Binance and use safe wallets like Trust Wallet, which includes features like Security Scanner (Trust Wallet, 2025).
Two-Factor Authentication (2FA) adds an extra layer of security to your accounts so that no one else can get in.
Check Emails and URLs: Instead than clicking on links, type in the website addresses by hand. Also, make sure the people who sent you the emails are who they say they are.
Use Hardware Wallets: Store your crypto on devices like Ledger or Trezor that are not connected to the internet to make it less likely that hackers will get into them.
Be careful with offerings you didn’t ask for: Don’t respond to investment offers from someone you don’t know, especially on dating apps or social media.
Update Your Software: Keep your gadgets and software up to date so that scammers can’t leverage security gaps.
You should never give out your seed phrases or private keys. Real services will never ask for them.
Learn the Basics of Blockchain: Understanding how crypto transactions work will help you spot dodgy activity.
Talk to Advisors: If you’re not sure, get advice from financial experts or crypto groups you trust.
For businesses, further actions include using blockchain analytics tools like Elliptic’s to discover phoney wallets and make sure they meet the rules.
What to Do If You Get Scammed
If you fear you’ve been scammed, act quickly to reduce the damage:
Stop Talking: Don’t talk to the scammer again so they can’t fool you again.
Write down all the information about the transaction, such as the cryptocurrency addresses, transaction IDs, amounts, dates, and any emails or messages that were sent.
Let the police know: You can report a crime to the FBI’s Internet Crime Complaint Centre (https://www.ic3.gov), your local police, or financial regulators like the DFPI (https://dfpi.ca.gov/submit-a-complaint/). The Secret Service and FBI have stolen a lot of money in the U.S. by looking into blockchain data. For example, in 2025, they took $225.3 million (U.S. Attorney’s Office, 2025).
Change your passwords, put on two-factor authentication, and watch for suspicious behaviour to keep your accounts safe.
Let Your Bank or Exchange Know: If you sent money through a bank or crypto exchange, let them know straight away.
Don’t fall for recovery scams: Be aware of businesses that promise to get your lost money back for a fee, because many of them are frauds.
Get Legal Help: Talk to a lawyer who specialised in crypto fraud, like TLW Solicitors, about how you might be able to get your money back.
It’s really crucial to block crypto transactions from happening in the first place because they can’t be undone and it’s hard to get your money back. But police can still track transactions since blockchain is open. For instance, victims of the SpireBit scam recovered back $140,000 through the courts.
New Threats in 2025
There are new threats in the realm of crypto frauds in 2025:
AI-Powered Scams: Generative AI creates phoney identities, phishing emails, and deepfakes that look authentic, making it harder to recognise scams. For example, a deepfake video of Elon Musk made $5 million in 2024–2025.
Professionalised Scam Ecosystems: Scammers can use platforms like Huione Guarantee to get fake identities and launder money. More than $70 billion in transactions have happened since 2021.
CryptoATM scams are fraudulent investment schemes that target people who are easier to fool, namely older adults.
More and more, scammers employ AI and social engineering to disseminate their lies on social media sites like Telegram, TikTok, and X.
To sum up
Cryptocurrency scams put investors at a lot of risk, and losses are expected to go up in 2025 after reaching record levels in 2024. You may keep your money safe by knowing about common scams like phishing, rug pulls, and pig butchering, looking for warning indications; and using robust security measures.
It’s really crucial to report a scam soon away and protect your accounts, but getting your money back is still challenging. In a world that is always changing, it’s important to keep informed, check your sources, and be careful when you buy in cryptocurrencies.
