Learn to identify and protect yourself from common cryptocurrency scams
The cryptocurrency industry attracts scammers due to the irreversible nature of transactions and the relative anonymity it provides. Once your crypto is sent to a scammer, it's gone forever with no way to reverse the transaction or get help from a bank.
However, most scams follow predictable patterns. By learning to recognize these red flags and following security best practices, you can protect yourself from the vast majority of crypto scams. This guide will teach you how to identify common scams and stay safe in the crypto space.
Scammers create fake websites and emails that mimic legitimate crypto services to steal your login credentials, private keys, or seed phrases. These sites often look identical to the real ones.
Red Flags:
Scammers impersonate customer support from exchanges or wallet providers, often reaching out via social media or messaging apps to "help" with issues and steal your credentials.
Red Flags:
Investment schemes promising guaranteed high returns with little to no risk. These scams pay early investors with money from new investors until the scheme collapses.
Red Flags:
Developers create a new token or NFT project, hype it up to attract investors, then suddenly withdraw all funds from the liquidity pool and disappear, leaving investors with worthless tokens.
Red Flags:
Stop All Communication
Immediately cease contact with the scammer and don't send any more funds, even if they promise to return your money.
Secure Your Accounts
Change all passwords, enable 2FA, and if you shared your seed phrase, immediately transfer any remaining funds to a new wallet.
Document Everything
Take screenshots of all communications, transaction IDs, wallet addresses, and any other relevant information.
Report the Scam
Report to the platform where the scam occurred, local law enforcement, and agencies like the FTC or IC3. While recovery is unlikely, reporting helps prevent others from being victimized.