Security
Scam
A fraudulent scheme designed to steal cryptocurrency or money from victims, including phishing attacks, fake exchanges, rug pulls, Ponzi schemes, and social engineering tactics.
Last updated: January 5, 2025
What is a Crypto Scam?
A crypto scam is any fraudulent scheme designed to steal your cryptocurrency or money. The irreversible nature of blockchain transactions makes crypto particularly attractive to scammers—once funds are sent, they’re usually gone forever.
Common Scam Types
Phishing Attacks
- Fake websites mimicking real exchanges
- Emails claiming account issues
- Fraudulent wallet connection requests
- Fake customer support accounts
Investment Scams
- Ponzi schemes: Early investors paid by new investors
- Rug pulls: Developers abandon project with funds
- Pump and dump: Coordinated price manipulation
- Fake ICOs: Non-existent projects collecting funds
Social Engineering
- Impersonating celebrities or influencers
- Romance scams with crypto requests
- Fake giveaways (“send 1 ETH, get 2 back”)
- Job offers requiring crypto deposits
Technical Exploits
- Malware stealing private keys
- Fake wallet apps
- Clipboard hijacking (changing copied addresses)
- SIM swap attacks
Red Flags to Watch
| Warning Sign | Example |
|---|---|
| Guaranteed returns | ”100% profit guaranteed” |
| Urgency/pressure | ”Limited time only!” |
| Unsolicited contact | Random DMs offering profits |
| Too good to be true | APYs over 100% |
| No verifiable team | Anonymous developers |
| Requests for keys | ”Share your seed phrase” |
How to Protect Yourself
Security Practices
- Use two-factor authentication everywhere
- Verify URLs carefully before connecting wallets
- Never share private keys or seed phrases
- Use hardware wallets for significant holdings
Research Habits
- DYOR (Do Your Own Research)
- Check team backgrounds and track records
- Verify smart contract audits
- Read community discussions on Reddit/Twitter
Trading Safety
- Use established exchanges like Coinbase and Binance
- Start with small amounts when trying new platforms
- Be skeptical of “insider tips”
If You’ve Been Scammed
- Stop all communication with scammer
- Document everything (screenshots, addresses)
- Report to platform and authorities
- Warn others in community
- Accept that recovery is unlikely (but report anyway)
Remember: legitimate projects and exchanges will never ask for your private keys or seed phrase.
Ready to Start Trading?
Now that you understand scam, explore the best exchanges to begin your crypto journey.