Greeting! Dear readers🌺….
You will be very surprised to know that in 2025, out of the world’s population, there are at least 861 million cryptocurrency users. These digital currencies offer new and exciting investment opportunities to them.
However, the most worrying thing is that:
While on the one hand, the number of such crypto investors is increasing, millions of scammers are also appearing on the other hand.
These scammers always look for new tricks to trap innocent and less-informed people in the net of their illegal activities and destroy their overall investments.
After hearing this, you must be worried for a few seconds about your valuable assets. Right?
Crypto users! Don’t worry, it is very easy to defeat such fake people and protect yourself from their deceptive tricks. By adopting effective strategies, you can always stay two steps ahead of them.
To discuss the same thing in detail, we have brought this listicle article for you. This guide is a detailed discussion of eight common crypto scams, as well as their solutions.
So, get ready to fight….
8Common Crypto Scams and Their Solutions
It’s time to eight common crypto scams and learn how to protect yourself by avoiding them.
1. Phishing Scams
Phishing scams are one of the most common, as well as dangerous, cyber threats, where scammers deceive users by sending them emails containing harmful links. Emails sent to them appear to come from a well-known crypto source, such as a trusted exchange platform or a digital wallet service.
These emails lead users to fake websites that are designed to steal their sensitive information, such as private keys and personal login credentials. By obtaining such information, criminals get an opportunity to access and steal their crypto assets very easily.
To protect yourself from this type of fraud, follow these guidelines.
- Check any URL more than two times before entering your sensitive information.
- Avoid suspicious and unsolicited emails or texts that ask you to click on links.
- Use a strong password or enable 2-factor authentication (2FA) on your credentials and digital wallets.
2. Man-in-the-Middle Attacks
After hearing this, “Man in the Middle Attack”, you must have gotten a little idea of what kind of attacks or scams these are. In cryptocurrency, it is a general term for when an attacker positions himself between two parties to alter their communication.
A common example of such an MITM attack is active eavesdropping. In this attack, the attacker connects with both victims( people who believe they are directly communicating with each other) and relays messages between them secretly.
Till now, both victims think that they are communicating directly. However, on the contrary, the attacker is controlling their overall conversation. Due to this, they intercept all relevant messages passing between them and use that information to steal their credentials and private keys.
Let’s discuss some pro tips for protection against these MITM attacks.
- Use an encrypted connection, a strong password, and implement 2-factor authentication.
- You can use passwordless authentication.
- A hardware wallet with a tamper-proof screen enables you to verify true transactions.
- Use VPN services that will secure browsing.
3. Ponzi Schemes
Ponzi schemes are investment-related scams in which fraudulent people trick investors by promising high returns without the risk of losing investments. To understand this clearly, let’s have an example.
Suppose you fell into the trap of some criminals who promised you a huge profit in return for your little investments. Being an earlier investor, you will surely be given some profit.
However, if you are thinking that this profit will be given to you by investing your money somewhere, you are wrong.
Basically, their main aim is to create an illusion of a legitimate and successful investment, making the scheme appear worthy and profitable. To do this, they embezzle funds from new incoming investors and give you some money in the name of profit. The same practice is also repeated with others.
However, in the end, the influx of new investors slows down, and the scheme collapses automatically, leaving you with a significant loss.
If you want to recognize and protect yourself from such schemes, follow the tips discussed below.
- Avoid any crypto scheme that promises high and consistent returns.
- Don’t go for investments if you are unaware of how investments work and how they generate profits.
- Research the company or individual offering the investment, and verify licenses, registration, and online reputation.
4. Pump & Dump Schemes
Dear users! Pump-and-dump schemes are another type of fraud, where scammers deceive investors and take advantage for their own benefit. To understand these schemes clearly, we have divided this section into two parts. In the first part, we will discuss the Pump phase, and in the second part, we will talk about the Dump phase.
Pump Phase: This phase starts when scammers buy cheap and low-cost crypto assets in large quantities. Here, they start to play their trick. Here, these scammers use various communication channels, such as social media, forums, and others, to spread fake and exaggerated information about these cheap currencies. In short, they artificially inflate their price. Due to this hype, more users invest in these currencies, and their price begins to touch the sky.
Dump Phase: This phase is also called the downfall phase for investors. Once the prices of cheap currencies reach a high level, scammers immediately sell off their holdings and earn a huge profit. Unfortunately, this massive selling causes the price to drop suddenly, leaving other investors( who had bought these currencies at an inflated price) with a significant loss.
Below, we have listed some effective tips to avoid these schemes.
- If you experience a sudden and unexpected rise in the price of cryptocurrencies, investigate the reasons before you invest.
- Try to recognize the pump and dump schemes, including low trading volume, and coordinated buying activities.
- Seek advice from a person who has expertise in crypto trading.
- Familiarize yourself with high-pressure tactics used by scammers, such as fear of missing out (FOMO) or promises of quick profits.
5. Romance Scams
Romance scams, also known as dating scams, are a type of deceptive fraud where cybercriminals target victims emotionally with love. They create fake online profiles on websites, social media platforms, and even messaging apps, and make romantic relationships with targeted users.
Once the trust is built, these fraudulent people convince victims with great affection and in a manipulative way to invest in cryptocurrencies. Additionally, they ask for emergency funds emotionally, and many users fall prey to these fake relationships.
After having access to their digital wallets or receiving this emergency fund, they immediately block them and disappear.
To protect yourself from such deceptions, follow the tips given below.
- If your love partner urgently requests money, especially in crypto, never trust them and think again and again before sending money.
- Avoid sharing sensitive financial or personal information with someone you’ve only met online.
- Be cautious if an online partner discusses money. Additionally, verify their identity through multiple channels.
6. Blackmail or Extortion Scams
Now, let’s move on to a type of scam where scammers send you an email and claim that they have access to your sensitive personal information. They blackmail or threaten you to pay them in cryptocurrencies, otherwise they will leak your personal information.
Here’s a question: Why do they demand cryptocurrencies, not normal currencies?
The answer is very simple: It is very difficult for victims to trace cryptocurrencies, as well as reverse them, as they offer a high level of anonymity. If you fall prey to such fake people, you will lose a large amount of money.
However, no need to worry, as we are going to discuss some effective strategies to defeat such scammers.
- You can report scammers to your local or national law enforcement, such as the FBI.
- Don’t reply to such threatening messages, nor send money under their pressure.
- Don’t share your details on social media beyond a specific limit.
7. Fake Crypto Exchanges
Fake crypto exchanges are one of the most common crypto scams that are all about manipulating investors by promising for unbeatable rates and access to new coins. In short, you’re offered huge profits in return for a very small investment. However, the reality is completely opposite.
There is no such scheme or exchange offer, and the investors are unaware of such fraud. These platforms only appear to be real. However, once an investor deposits funds, this scheme disappears overnight, and your investments go to waste.
To save yourself from such fraudulent platforms, follow our guidelines.
- Verify the exchange license before you make investments.
- Ensure that the platform offers real and transparent information about its team and company.
- Don’t follow an exchange offer without researching reviews and social media posts from trusted and credible sources.
8. Fake Website Scams
Fake websites are one of the easiest ways for criminals to trick unsuspecting users. Sometimes, many attackers create websites or fake versions of official digital wallets. These fake sites have too many similarities with official ones, which makes it very difficult for victims to spot the difference.
Additionally, these sites often use an altered domain name that looks like a real one. These fake domains trick users into entering sensitive data like login credentials or wallet keys. Once entered, your sensitive information goes into the hands of criminals, allowing them to harm your cryptocurrencies very easily.
Some tips let you recognize such scams and protect your assets from them.
- Official sites have professional designs. If you find the layout of any site suspicious, avoid navigating it.
- Always double-check the URL and verify the web address again and again to spot whether the domain is real or real.
- Authentic websites typically provide contact details such as the physical address, phone number, and email address.
Common Crypto Scams – Our Final Words
Nowadays, when the crypto landscape is flooded with millions of investors, securing your online assets and sensitive information from scammers has become more essential. It’s not easy for everyone to get rid of these fraudulent people. Some people fall victim to these scams due to small mistakes, while some are targeted because of a lack of awareness.
However, with the guide we have discussed, you can easily stay two steps ahead of criminals. Our guide is a collection of the 8 most common crypto scams. We have not only discussed these scams but also talked about their solutions.
