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4 Common Cryptocurrency Scams


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September 02, 2023

According to a 2022 Crypto Crime report, an extensive rise in scams and theft resulted in 79% global increases in crypto-related crimes. Crypto scams purpose to get private data like security codes or lure unsuspecting individuals into directing their digital tokens to compromised wallets. Knowing the common crypto scams and how to identify/ spot them can help keep you from getting conned while safeguarding your crypto investment. Outlined below are four common cryptocurrency scams.

1. Bitcoin investment scams

When it comes to Bitcoin investment schemes, fraudsters usually reach out to investors or traders pretending to be experienced crypto investment managers. These fake managers purport to have earned millions of dollars in crypto and guarantee their unsuspecting victims that investing in crypto will make them a lot of money. These scammers might begin by demanding an upfront fee and then steal it. Also, they can request personal identification details in the guise of depositing or transferring funds to access your crypto.

Jeffrey Nadrich of Nadrich Law notes that pig butchering scams have also increased in recent years. Pig butchering scams involve a fraudster convincing an unsuspecting victim to invest increasing amounts of money into a crypto exchange a.k.a. "fattening the pig." The fraudster "butchers" the victim by absconding with the invested funds never to be heard from again. Globally, victims have lost billions of dollars through this scam.

Fraudulent celebrity endorsements are another Bitcoin investment scam where fraudsters take authentic pictures and put them on fake ads and accounts to make it seem like a celebrity is marketing a substantial financial gain from crypto investment. While the claim sources appear legit by using trustworthy company names and professionally-looking logos and sites, the endorsement is fraudulent. Consider using a reputable crypto exchange and check their BTC to USD converter to ensure you're converting your tokens using the best rates.

2. Crypto phishing scams

Crypto phishing scams involve luring victims into sharing their personal data or giving up their private keys. The scammer poses as a legit person or entity to gain a victim's trust. Upon scamming you, they use those details to steal your crypto money. Phishing scams have become quite common as cyberattacks and cybercriminals become more advanced. These scams target crypto exchanges, initial coin offerings, and wallets. As such, you, as a cryptocurrency user, should know how they operate to safeguard yourself and your funds.

A phishing scam often begins with the fraudster sending mass emails to possible victims. It usually seems like it's from a trustworthy source. The emails usually have links to a fake site that appears similar to the genuine one. Since phishing emails are hard to identify, look for grammar/ spelling mistakes and copycatting. Also, they contain misleading links.

3. Rug pull scams

Rug pull is a common crypto scheme where fraudsters develop fake tokens, inflate their worth to entice buyers then escape with your money once the token gets to the peak price. As a crypto investor, you may encounter the following rug pull scams:

Stealing liquidity: Cryptocurrency projects on decentralized platforms require a liquidity pool. Fraudsters usually entice early investors to make contributions toward the liquidity pool and then withdraw all the funds

Develop a token that cannot be sold: Scammers create a coding trick that, once activated, makes it impossible for investors to sell their tokens

Consider checking whether a project is legit before investing.

4. Fake crypto exchanges

Fake, unregulated crypto exchanges con potential victims by passing themselves off as authentic exchanges. These exchanges normally entice users using unsolicited phone calls or celebrity endorsements. A reliable crypto exchange should have a substantial social media presence and a website. Their employees should be verifiable. Beware of unsought phone calls pressuring you to invest.


Scams aren't new to the crypto world. As such, understanding the common cryptocurrency scams and how to avoid them can help secure your investments, plus personal and financial data.


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About the author

Pat Lee

Pat is a digital marketer who has several years of experience in working with non-profit organizations. She has extensive knowledge in the fields of Education, Computer Science, and Psychology. When she isn't helping build brands, she practices Muay Thai and run marathons.

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