How to Spot Cryptocurrency Scams and Stay Safe in the Digital Age
In Brief
Stay safe in crypto by spotting scams early: research platforms, verify sources, protect your accounts, and trust no one promising easy money.
Cryptocurrencies have transformed the financial world, offering exciting new ways to invest, save, and spend money. But where innovation goes, scammers often follow. The rapid rise of digital currencies has opened the floodgates for a wave of crypto-related scams, ranging from fake trading platforms to elaborate romance cons.
As digital currencies become more mainstream, it’s essential to know how to identify red flags and keep your assets safe. This guide breaks down the most common types of cryptocurrency scams, offers real-world examples, and shares practical tips to help you avoid becoming a victim.
The Cost of Crypto Scams: Billions Lost
In 2024 alone, cryptocurrency scams cost users and investors approximately $12 billion, according to blockchain analysis firm Chainalysis. While that number is slightly lower than the $6.5 billion reported in 2022, it still represents a significant threat to individual investors.
And that’s just one piece of the puzzle—when you include illegal activities like money laundering and darknet transactions, the total value of cryptocurrency obtained from illicit sources can jump much higher.
The bottom line? Crypto scams are big business for cybercriminals. But with knowledge and vigilance, you can protect yourself.
The Biggest Crypto Heists in History
Some of the most jaw-dropping cryptocurrency losses didn’t happen through subtle manipulation—they were massive hacks with equally massive consequences. Here are three of the most infamous:
1. Bybit Hack (2025) – $1.4 Billion Stolen
In February 2025, the Dubai-based exchange Bybit suffered the largest single theft in crypto history. Hackers exploited a private key leak in Bybit’s hot wallet infrastructure and made off with 400,000 ETH, worth $1.4 billion at the time.
The company quickly acknowledged the breach and launched a bounty program to recover the funds. Days later, the FBI attributed the heist to North Korean hackers.
2. Coincheck Hack (2018) – $534 Million in NEM
Back in 2018, Japanese exchange Coincheck lost $534 million in NEM tokens due to a phishing attack. Hackers accessed hot wallets and spread malware before draining the funds. This incident led to a major investigation by Japanese authorities and marked one of the first wake-up calls for the global crypto industry.
3. FTX Collapse and Hack (2022) – $477 Million Stolen
FTX, once a major crypto exchange, collapsed in late 2022 due to financial mismanagement and fraud. In the chaos that followed, $477 million in various cryptocurrencies disappeared in what many believe was an inside job. Its founder, Sam Bankman-Fried, was sentenced to 25 years in prison and ordered to forfeit $11 billion to help repay victims.
The Most Common Types of Crypto Scams (and How to Avoid Them)
While large-scale hacks grab headlines, everyday scams are far more common—and often more devastating for individual users. Here are the top scams reported in the crypto space:
1. Fraudulent Trading Platforms
How the scam works:
Fraudsters set up fake trading platforms or wallets that look legitimate. These platforms may even show fake profits and market activity to gain your trust. Once you deposit your funds, they vanish without a trace.
How to avoid it:
- Stick to well-known and regulated exchanges.
- Double-check URLs for spelling errors and avoid websites that don’t use HTTPS.
- Verify app developers before downloading crypto apps—look for high download counts and authentic reviews.
- If someone is pressuring you to join an unknown platform, treat it as a red flag.
2. Pig Butchering Scam
How the scam works:
In this long-term con, scammers build trust with victims over time—often over text or social media—and convince them to invest in a fake crypto platform. They might show fake profits to lure victims into depositing more. Eventually, the victim is “butchered,” losing access to their funds completely.
How to avoid it:
- Be wary of strangers contacting you out of the blue, especially those offering investment tips.
- Avoid any investment opportunity that requires you to move a conversation to WhatsApp or Telegram.
- If someone refuses a phone or video call, they’re probably not who they claim to be.
3. Imposter Scams
How the scam works:
Scammers impersonate trusted companies, celebrities, or government officials to convince people to invest in fake opportunities. These scams often begin on social media and move to encrypted messaging apps.
Example:
Fraudsters impersonated investment firm BlackRock, contacting victims via Facebook and WhatsApp to promote a fake crypto trading program. Victims who clicked the fraudulent links lost their money.
How to avoid it:
- Never trust investment pitches from social media accounts, even if they appear professional.
- Legitimate companies won’t message you personally asking for money.
- Verify URLs, and always navigate to the official website manually instead of clicking unknown links.
4. Romance Scams
How the scam works:
A scammer builds an online relationship using fake profiles and emotional manipulation. Once trust is gained, they convince the victim to invest in cryptocurrency through a fraudulent platform, often claiming to be a successful trader.
Example:
A California resident met “Mark” on Bumble, who later moved the conversation to WhatsApp. After gaining her trust, he persuaded her to invest $50,000 into a fake platform. The money was never recovered.
How to avoid it:
- Be skeptical if someone you’ve never met in person asks you to invest money.
- Use reverse image search to check if their profile photos are stolen.
- If a new love interest is suddenly an expert in crypto trading, that’s a red flag—not romance.
What to Do If You’re Scammed
Even with precautions, scams can happen. If you think you’ve been targeted, here’s what you should do immediately:
- Cease contact with the scammer.
- Secure your accounts by changing passwords and enabling two-factor authentication.
- Move your crypto to a new wallet if possible.
- Report the scam to:
- The crypto platform involved
- Local law enforcement
- National fraud databases (like the FTC or IC3)
- The crypto platform involved
- Monitor your accounts for suspicious activity or identity theft attempts.
Final Thoughts: Stay Informed, Stay Safe
In the fast-moving world of cryptocurrency, scams are a constant threat—but they’re also avoidable. Being cautious, skeptical, and informed can go a long way in protecting your digital assets.
As a spokesperson from Kryptocasinos.com put it:
“In the world of cryptocurrencies, scams are a real threat, so it’s important to stay safe. Always do your research and make sure you’re using trusted platforms and wallets. Never share your private keys or personal information with anyone. Be wary of offers that seem too good to be true, and double-check everything before you invest.”
Cryptocurrency offers incredible opportunities—but only when approached with care. By staying alert, verifying everything, and avoiding shortcuts, you can enjoy the benefits of crypto while keeping your funds safe from scammers.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
