Bitcoin and Crypto Scams: Common Scams & How to Spot Them

From phishing to dust attacks, our guide covers the most common Bitcoin scams and crypto scams, so you can easily spot a scam & make sure you don't fall for it.

What is a crypto scam?

Crypto scams come in all shapes and sizes, and they’re rife in the market, so it’s important to know what to look out for. Some of the most common types of crypto scams include:

1. Advance fee scam

A scammer convinces victims to send a small payment upfront, framed as a processing fee, registration cost, or deposit, in exchange for a much larger payout or opportunity. The scammer disappears once the fee is paid, and no promised return ever comes.

2. Address poisoning scam

In an address poisoning scam, Scammers exploit the way crypto wallet interfaces display recent transactions by sending small amounts of worthless tokens from an address that closely mimics the victim’s own. The goal is to “poison” the transaction history, hoping the victim will mistakenly copy the scammer’s address when making future transfers. If the victim pastes and sends funds to the wrong address, the scammer receives the assets—and the transaction is irreversible.

3. Affinity scam

Targeting tight-knit communities like religious, cultural, or ethnic groups, scammers pose as trusted insiders or use community leaders to promote fake crypto investment schemes. Victims are more likely to trust and invest due to shared identity or values.

4. AI investment scam

Scammers claim to use advanced AI trading bots or proprietary algorithms to deliver guaranteed crypto profits. Victims are shown falsified dashboards with fake gains to entice larger investments before the scammer vanishes.

5. Asset recovery scam

After a victim falls for a scam, another fraudster approaches, claiming they can recover the stolen funds for a fee. These fake "recovery agents" often pose as legal professionals or government officials to appear credible.

6. Bait and switch scam

Scammers advertise a highly desirable crypto product, like a new token or NFT, with flashy marketing. Once buyers attempt to purchase, they're sold an inferior or unrelated asset, or lose their money entirely.

7. Bitcoin mining scam

Fraudsters promote fake mining ventures, asking victims to invest in “mining infrastructure.” They promise profits from mined bitcoin but provide no transparency. Investors often receive fake dashboards and never see actual returns.

8. Blackmail scams

Scammers contact victims claiming to have compromising photos, videos, or private data, sometimes obtained through hacking or faked altogether. They demand payment in crypto to avoid public exposure or legal consequences.

9. Crypto gaming scam

Scammers create fake "play-to-earn" games that require users to link wallets and deposit crypto to begin playing. In reality, the games are traps, coded to access and drain funds from users' wallets.

10. Crypto job scam

Fake job recruiters approach victims with remote crypto job offers, often promising bonuses or high pay. Applicants are tricked into paying for fake training or equipment, or into sending crypto as part of supposed onboarding tasks.

11. Crypto wallet drainer attack

Victims are tricked into interacting with malicious websites that mimic legitimate crypto platforms. These sites activate wallet-draining scripts or smart contracts designed to empty funds without further user input.

12. Dusting attack

Tiny amounts of crypto (dust) are sent to random wallets. These are used to trace wallet activity and link anonymous wallets to real identities. Once linked, scammers may attempt phishing, social engineering, or extortion.

13. Fake trading platforms

Fraudulent websites or apps mimic legitimate crypto exchanges, offering "real-time" trading and fake profits. Victims can deposit but cannot withdraw funds. The platforms often include fake customer support to delay or deflect concerns.

14. Fraudulent airdrop/giveaway scam

Scammers impersonate celebrities, crypto influencers, or companies and announce fake crypto giveaways or airdrops. Victims are required to send a small amount of crypto to “verify” their address or claim their reward, but lose their funds instead.

15. High-yield investment programs (HYIP)

These schemes promise fast, passive income with extremely high returns on crypto investments. They often use referral incentives or multi-level marketing. Early returns are paid from new investments, but the system collapses when recruitment slows.

16. Hacking and ransomware

Hackers gain unauthorized access to devices or networks, encrypt sensitive data, and demand a crypto ransom to unlock it. Victims receive payment instructions and threats, but even after paying, they may never regain access.

17. Identity theft

Scammers steal personal information (e.g., name, address, SSN, wallet credentials) via phishing, data breaches, or social engineering. They use this information to impersonate victims, gain access to crypto assets, or open fraudulent accounts.

18. Imposter scam/phishing

Using emails, websites, or phone calls, scammers impersonate legitimate entities (e.g., exchanges, wallet apps, government bodies) to trick users into revealing their private keys, login credentials, or seed phrases.

19. Investment group scam

Scammers invite victims into group chats on platforms like WhatsApp or Telegram, often led by a fake “guru” claiming expert trading knowledge. The group, filled with bots or accomplices, fakes success stories to lure victims into investing.

Read next: How to report stolen crypto

20. Liquidity mining/yield farming scam

Scammers set up fake platforms that mimic decentralized finance (DeFi) services and encourage victims to stake crypto for high yield returns. The interface shows fake growth, but all deposits are sent to scammer-controlled wallets.

21. Pig butchering scam

In a pig butchering scam, a scammer builds a long-term relationship with the victim, often romantic or professional, and slowly introduces them to a fake investment scheme. Victims are manipulated into repeatedly depositing funds and are eventually locked out.

22. Romance/social media scam

Also known as a honeypot scam, scammers create fake profiles to build emotional relationships with victims. Once trust is established, they fabricate an emergency or investment opportunity, manipulating victims into sending crypto.

23. Rug pull scam

In a rug pull scam, Scammers launch a flashy new crypto token or DeFi project with promises of sky-high returns. Once enough people invest and the token gains value, the developers sell their holdings and disappear, crashing the project and stealing the funds.

24. Signal selling scam

Scammers sell trading signals, bots, or subscription services claiming insider knowledge or high-profit trading strategies. These are often tied to fake platforms and designed to keep victims investing without actual returns.

25. Tech support scam

Scammers claim the victim’s wallet or computer has been compromised and offer help, usually by phone or pop-ups. They gain remote access or ask for payment in crypto to “fix” nonexistent issues, often stealing funds in the process.

Why are crypto scams so common?

Crypto scams are so common because the cryptocurrency space combines several factors that make it uniquely attractive—and exploitable—for scammers. Here’s why:

1. Irreversible transactions: Unlike traditional banking, crypto transactions are final and nearly impossible to reverse. Once you send crypto to a scammer, it’s gone—no chargebacks, no fraud protection.

2. Pseudonymity and anonymity: Most blockchains don’t require users to tie identities to wallet addresses. This allows scammers to operate anonymously, making it difficult for victims or law enforcement to trace or prosecute them.

3. Lack of regulation: Crypto operates in a largely unregulated or inconsistently regulated environment, especially across international borders. Scammers exploit this legal gray area to avoid accountability.

4. Global and 24/7 market: The crypto market never sleeps and is accessible from anywhere in the world. This round-the-clock, borderless environment allows scammers to strike quickly and vanish just as fast.

5. Technical complexity: Cryptocurrency and blockchain technology are technically complex and poorly understood by many users. This knowledge gap allows scammers to prey on confusion, using jargon and fake dashboards to appear legitimate

6. Fear of Missing Out (FOMO): Crypto markets are driven by hype. Scammers exploit this by creating fake urgency, fake tokens, or fake "once-in-a-lifetime" investment opportunities that appeal to greed, excitement, or fear of being left behind.

7. New and emerging technologies: Crypto is full of new tools: NFTs, DeFi, DAOs, tokens, staking, AI bots, etc. With every new innovation, there's a new opportunity for scammers to exploit what people don’t yet fully understand.

8. Social engineering and trust exploitation: Scammers build emotional or social connections (e.g., romance scams, pig butchering, fake communities), which lowers skepticism and increases the chance of victims handing over funds voluntarily.

9. Easy access to scam tools: There are now off-the-shelf scam kits, fraudulent trading platforms, fake wallets, and ready-made phishing websites, sold on the dark web, making it easy for even low-level criminals to run sophisticated scams.

10. Slow law enforcement response: Because of jurisdictional issues, technical hurdles, and sheer volume, law enforcement often can't keep up with reporting, investigating, and prosecuting crypto crimes. Scammers rely on this delay.

Read next: How to Avoid Crypto Scams

Don’t forget the tax bill…

If you’ve been scammed, there may be a small silver lining for your tax bill. Learn more about how to report stolen cryptocurrency on taxes, or sign up to Koinly to easily deal with your crypto taxes.