13 Most Common Crypto Scams Today and How to Recognize Them

Is Bitcoin Really a Scam?

Bitcoin and other crypto assets are legitimate financial technologies, traded on reputable exchanges worldwide. However, the rapid development of the crypto market has created space for malicious actors to operate. They exploit investors’ lack of understanding and unrealistic profit promises to carry out large-scale crypto scams.

The key point is to distinguish between Bitcoin (legitimate digital assets) and scam schemes that only use its name. In this article, we will explore the most common tricks and how to protect yourself from potential risks.

5 Golden Rules to Avoid Becoming a Crypto Scam Victim

Before delving into various fraud methods, you need to understand these basic principles:

First: Be cautious of unusual promises. Any invitation promising high returns with no corresponding risk is a warning sign. Quick money-making schemes do not exist in the real investment world.

Second: Always verify information from multiple independent sources. Never decide to invest based on a single source. Check research articles from top websites, community forums, and official reports.

Third: Use trusted security software. Only download security applications from reputable companies with long-standing credibility, and regularly update to the latest version.

Fourth: Limit transactions with strangers. Scammers may spend months building fake relationships with you, but they will never reveal their true identity. Verify identities through multiple communication channels.

Fifth: Only use officially licensed exchanges. These platforms must comply with local laws and have publicly issued licenses. Check the list of approved exchanges from financial regulatory agencies.

Bitcoin prices and other crypto assets fluctuate constantly. Sometimes soaring, other times plunging, or remaining stable for periods. Understanding the nature of this volatility will help you avoid falling into traps set by those creating artificial FOMO.

13 Modern Crypto Scam Types

Malicious actors continuously improve their techniques. Here are the most widely used tricks you need to watch out for:

1. Fake Exchanges

When investor interest in crypto surges, bad actors create numerous fake exchanges. These platforms often offer prices that are significantly different from the real market, making users think they are getting a “golden deal.”

In reality, when you transfer money or crypto into accounts they provide, your funds will disappear. In 2022, UK police arrested 6 individuals involved in a “pirate” scam worth $27 million USD.

2. Free Crypto Giveaways

A classic but still effective technique: scammers promise to give away free Bitcoin, Ethereum, or other tokens. To “activate” the gift, you need to send a small amount of money for verification or provide personal information.

After completing this step, they will use that information to continue scamming you or your relatives. If you see such posts on social media, report immediately to protect the community.

3. Ransom Email

Ransom email scams are among the most rampant crypto frauds. You receive an email claiming that hackers have infiltrated your computer, installed keyloggers, recorded videos via webcam, etc.

They threaten to distribute “sensitive images” to your friends if you do not send Bitcoin. The trap is these emails are sent in bulk, and scammers know some people will be scared enough to pay. Any ransom email should be deleted immediately.

4. Impersonating Celebrities

Bad actors easily create social media accounts that look exactly like famous figures, from exchange CEOs to blockchain experts. When there are posts or announcements from real people, fake accounts reply with promises of free crypto or exclusive investment opportunities.

Many are deceived because the accounts look too similar, have enough followers, and the content seems professional. Always verify (blue badge) and contact the real person through official channels if in doubt.

5. Malware Changing Wallet Addresses

Some malicious programs are highly sophisticated: when you copy a wallet address to send Bitcoin, malware automatically replaces it with the hacker’s address. You won’t realize until the funds are sent.

Since blockchain transactions are irreversible, this is a point of no return. Be extremely careful with admin rights when installing software. A good antivirus scanner can help, but cannot guarantee 100% safety.

6. Face-to-Face Transactions

Some suggest meeting in person to exchange crypto. This is very dangerous if you do not know who the other person is. Scammers may impersonate celebrities, fake real money exchanges to steal your crypto, or even use force to rob you.

Instead, use escrow (platforms). These platforms verify identities and protect both parties.

7. Phishing Emails

Fake phishing emails impersonate crypto services you use, asking you to reset passwords, verify identity, or click on “security update” links. These emails can look identical to legitimate ones.

To verify, do not click any links in the email. Instead, directly visit the company’s website or call their official number listed on the site.

( 8. Fake Websites

Fake websites often accompany phishing emails, designed to perfectly copy real sites. They may appear as sponsored ads on Google or as apps on app stores.

Never install apps or log in to websites unless you are 100% sure they are legitimate. Carefully check URLs and look for user reviews beforehand.

) 9. Ponzi Schemes Requiring Crypto Deposits

Ponzi is a classic crypto scam: organizers promise high returns on your deposits, but the money is actually used to pay earlier investors. Eventually, when new investors stop coming in, the system collapses and everyone loses money.

Warning signs: excessively high yields ###50% per month###, fixed interest promises, pressure to join quickly, or encouraging you to invite friends.

( 10. Multi-Level Systems

Multi-level schemes promise returns based on the number of people you recruit. These systems expand rapidly, but most members earn little or nothing. Top-tier members profit from those at the bottom.

Never invite friends to join a scheme just to earn referral bonuses. Do not use your funds to help others join, as these funds are often unrecoverable.

) 11. Pump and Dump ###Hype and Sell###

A group or influential individual (or a major influencer) begins aggressively promoting a small token, claiming it will “increase 10x.” When ordinary investors buy in, the “insiders” sell all their holdings at high prices, then the price crashes.

They buy back at low levels after fooling others. Protect yourself by thoroughly researching each project before investing. Do not believe promises without clear basic data.

( 12. Ransomware Requiring Crypto Ransom Payment

Ransomware is malware that blocks access to your device, then demands Bitcoin to unlock. Never pay the ransom. Instead, contact cybersecurity experts to remove the malware.

To prevent, be cautious when installing software, especially those requesting admin rights, and always back up important data.

) 13. Fake Altcoins

The altcoin market is highly vulnerable to abuse. Fake tokens may have shiny websites, active Discord communities, and convincing stories. Founders sell “private sales” at low prices, then when the token goes public, they use marketing to create FOMO.

Once the price rises, early holders sell and disappear. Some fake altcoins even include “Bitcoin” in their names to deceive people. Always check the whitepaper, management team, and project history before buying any altcoin.

Major Crypto Scandals That Shocked the World

PlusToken: $2 Billion USD Ponzi in China

PlusToken was a Chinese exchange promising extremely high interest rates. From 2018 to 2019, this scam raised over $2 billion USD from thousands of investors. The organizers held large marketing events, attracting even cautious investors into the system.

In June 2019, Chinese police arrested 6 key suspects. However, full recovery of funds for victims has not yet been achieved.

USI-Tech: Over $10 Billion USD Multi-Level Scheme

USI-Tech was founded in Dubai by four individuals ###two of whom live in Australia###. The company combined Ponzi and multi-level marketing, promising at least 48% monthly profit.

They used videos on social media to depict a luxurious lifestyle, attracting tens of millions of USD. Regulatory agencies in the US, Canada, Australia, New Zealand, and Spain issued public warnings.

When exposed, they changed names to Eyeline, then WealthBoss, continuing operations. Victims reported losing all their investments and filed complaints about fake real estate certificates.

( iFan & Pincoin: $15 Trillion VND Scam in Vietnam

This is the largest crypto scam in Vietnam. iFan )claimed to be from Singapore### and Pincoin (claimed to be from India), founded by 7 Vietnamese.

iFan promised 48% monthly profit, with a 4-month ROI. Additionally, if you recruited others, you earned an 8% commission. The scheme combined Ponzi and multi-level marketing.

In 2018, this scam affected 32,000 people and raised about 15 trillion VND. Many victims lost their homes and everything. To this day, many have not recovered their money.

Summary: Protect Yourself from Crypto Scams

Bitcoin and other crypto assets are not scams. They are real technologies with genuine potential. However, the market is exploited by bad actors seeking to prey on greed and ignorance.

The biggest crypto scams often combine Ponzi, multi-level marketing, and psychological marketing. They exploit FOMO, hopes of quick wealth, and lack of legal knowledge.

To invest safely:

• Equip yourself with knowledge before starting
• Stay calm, avoid following the crowd
• Verify all information
• Only use licensed, reputable exchanges
• Do not believe unrealistic profit promises
• Report scams to protect the community

All investments carry risks, but knowledge and vigilance can help you avoid common traps. Be cautious, persistent, and only trade under safe and transparent conditions.