Common Crypto Scams, and How to Spot Them

Updated 2026-10-30

Short answer: almost every crypto scam does one of three things: gets you to send crypto, gets you to sign something that lets them take it, or gets your seed phrase. Real companies, real support staff and real investments never need any of the three in a hurry. If someone is rushing you, stop.

1. Fake investment platforms ("pig butchering")

The costliest scam by far, according to the FBI. It starts with a stranger: a wrong-number text, a dating app match, a friendly contact on social media. Weeks later they share how much they're making on a trading platform and offer to help you start.

The platform shows big gains, and the first small withdrawal may even work.
Then you're asked to deposit more, or to pay a "tax" or "fee" to withdraw. The money was never invested.

Spot it: someone you've only met online is teaching you to invest. Only use exchanges you found yourself.

2. Impersonators

Fake support staff, fake exchange "security teams", fake government agents. They say your account is at risk and you must move your crypto to a "safe wallet", or they need your seed phrase or a screen share to "fix" something.

Spot it: real support never contacts you first in a DM, never asks for your seed phrase, and never asks you to move funds. Contact companies only through their official site or app.

3. Giveaways and "doubling"

"Send 1,000 XRP, get 2,000 back", often with a famous person's face or a hacked verified account. Live-stream "events" are common.

Spot it: nobody gives away money in exchange for yours. Ever.

4. Fake sites and wallet drainers

Copies of real apps, bought as search ads or sent as links, ask you to connect your wallet and sign. One signature, an approval or a "permit", can let them empty your tokens later without another click.

Spot it: check the address bar, open apps from bookmarks, and read what you sign. See how to read a transaction before you sign. Already signed something? Check and revoke your approvals straight away.

5. Look-alike addresses ("address poisoning")

Scammers send tiny or zero-value transactions from an address that starts and ends like one you use, hoping you'll copy it from your history next time.

Spot it: never copy an address from your transaction history. Get it from its owner, and compare it in full. Our address checker and Send checks flag look-alikes of your saved addresses.

6. Free tokens and airdrops you didn't expect

Unknown tokens appear in your wallet with a website in their name, or a "claim your airdrop" message. The site is a drainer.

Spot it: tokens you didn't buy are lures. Don't visit their links or try to sell them. Our Portfolio leaves them out of your total.

7. "Recovery" services

After a loss, "recovery experts" and "blockchain investigators" appear in comments and messages, promising to get it back for a fee. They're the second scam.

Spot it: only the exchange involved or the police can help. Report losses to the police and, in the US, to the FBI's Internet Crime Complaint Center (ic3.gov).

8. Crypto ATMs under pressure

Someone on the phone (a "bank", "the government", a "relative in trouble") tells you to withdraw cash and put it into a crypto ATM, often staying on the line while you do.

Spot it: no real organisation asks for payment through a crypto ATM. Hang up and call the organisation yourself on a number you look up.

Do this

Never share your seed phrase, with anyone, for any reason.
Treat urgency, secrecy and promised returns as red flags.
Open apps and exchanges from bookmarks, and read what you sign.
Copy addresses from their owner, never from your history.
Review your token approvals from time to time.