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Key Takeaways:
Common crypto scams fall into two major categories: Access-Based Scams (unauthorized wallet entry) and Transfer-Based Scams (being tricked into sending funds). The best defense against both is proactive awareness of the core warning signs, never sharing your private key, and always utilizing multi-factor authentication (MFA).
As the cryptocurrency industry grows, so too will the potential threats of theft and fraud.
Here at Bitcoin Depot, we urge our customers to stay aware of the crypto scam landscape. Your first and most effective line of defense is awareness, which is why we’ve compiled this guide to the most common types of attacks and how to protect yourself.
Read on to learn more about crypto scams and what you can do to protect yourself.
Crypto scams are broadly divided into two major types: Access-Based Scams, which aim to gain unauthorized entry to your wallet, and Transfer-Based Scams, which trick you into manually sending your crypto away. Understanding this fundamental difference helps you recognize the threat's goal and choose the right defense.
Let’s dig into these two main scam categories a little further:
These categories are quite broad.
In reality, there are hundreds of types of scams out there, and they equate to a ton of money lost in the crypto space alone.
According to research done by Chainalysis, around $40 billion was lost to scams in 2024* (source: chainalysis.com). That’s only part of the picture. It’s estimated that once more and more scams are uncovered, that number could eclipse almost $50 billion* (data also from chainalysis.com).
To stay safe, you need to know more about the specific types of scams that are common in the crypto world.
Let’s start with romance scams.
A crypto romance scam, often called "pig butchering," involves a fraudster developing a fake romantic relationship on a dating or social platform with the sole goal of manipulating the victim into sending cryptocurrency. The scammer builds trust over time before introducing a fake, "exclusive" crypto investment opportunity that requires the victim to send money.
Here are a few things to look out for to avoid romance scams.
Romance scams are even more common in the age of social media.
In fact, across all sections, not just crypto, victims lost around $1.4 billion in 2023* alone (data from cnbc.com).
Social engineering scams manipulate a victim's emotions, exploiting greed or fear by presenting either an unbelievable financial opportunity or an urgent, fabricated crisis to rush the victim into transferring crypto or revealing secrets. These scams rely heavily on psychological tactics to make you bypass your critical thinking.
Let’s explore some of the warning signs of a social engineering scam:
When in doubt, always try to verify the person’s identity. This step is crucial and can help you spot a social engineering scam before the damage is done.
Phishing is a classic digital attack where fraudsters impersonate a trusted entity—like an exchange or wallet provider—to trick you into revealing sensitive data, such as your password or private keys, often via fake websites or emails. This is a prime example of an Access-Based Scam.
Wondering how you can identify a phishing attempt or fake website? Here are a few common red flags:
A 'rug pull' is a malicious type of exit scam where the developers of a new crypto project suddenly abandon it, selling off all their holdings and disappearing with the investors' capital, leaving the token worthless. These scams primarily target investors seeking extremely high returns in new, unaudited projects (often called DeFi or meme coins).
Rug pulls are somewhat unique to the crypto ecosystem. Let’s review a few things to keep an eye out for:
Often with rug pull scams, as with other scams, there’s a sense of urgency or FOMO (fear of missing out) associated with the project.
Always take your time to fully understand a token or project before investing.
Imposter and giveaway scams involve fraudsters impersonating legitimate crypto brands (like exchanges or public figures) to lure victims with the promise of a massive return or a free giveaway, requiring you to first send a small amount of crypto as a "deposit." Once you send the funds, you receive nothing back, and your money is gone.
Look, is it too good to be true? That should immediately raise some suspicions.
To be sure you’re not falling victim to one of these scams, look out for:
The most effective defense against virtually all crypto scams is a combination of skepticism, technical security measures, and maintaining full control over your private keys. Being proactive is key to maintaining the security of your assets.
Let’s dive a bit deeper into what you can do to stay scam safe:
Here are some common questions around crypto scams.
Because crypto transactions are typically irreversible and the funds are often moved rapidly through multiple addresses, making it difficult for law enforcement to trace and freeze the assets before they are liquidated into cash or stablecoins.
Absolutely not. Any government agency, utility company, or law enforcement official demanding immediate payment in cryptocurrency is a fraudster. They will use aggressive threats and fear tactics to force you to pay quickly.
The most important security measure is safeguarding your private key/seed phrase. This phrase grants full, unrestricted control of your wallet and must never be shared, stored digitally, or typed onto an unknown website. Lose this phrase, and you lose access to your funds; share it, and you lose your funds to a thief.
A crypto exchange is a platform for buying/selling, where you do not fully control the keys. You trust the exchange. A crypto wallet is a personal storage method (hardware or software) where you hold your own private keys, giving you full control over your funds. Review our blog on exchanges vs. Bitcoin ATMs for more information.
Those are some common crypto scams and what to watch out for.
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*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd parties listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.
Note: This blog was updated on 11/12/25, original post date 3/24/23