Crypto scams are rising fast in 2024. Learn how to spot fake investments, rug pulls, AI deepfakes, and phishing attacks—and protect your cryptocurrency today.
Cryptocurrency has exploded in popularity—bringing with it a flood of scammers eager to cash in on the hype. According to the FBI’s Internet Crime Complaint Center, losses from cryptocurrency scams soared to more than $5.6 billion in 2023, nearly half of all reported fraud losses in the U.S. That number jumped 45% from the previous year, and with crypto prices hitting all-time highs in 2024, scams are following the money trail fast.
These scams aren’t just technical tricks or obscure hacks. They often rely on social manipulation, fake investment promises, and even AI-generated deepfakes to steal crypto from unsuspecting investors. What makes cryptocurrency scams especially dangerous is the nature of the currency itself: once it’s gone, it’s nearly impossible to get back.
Whether you’re new to digital assets or a seasoned trader, recognizing the most common cryptocurrency scams is the first step in protecting your investments. In this guide, we’ll break down the five most widespread scams, show you how they work, and give you clear steps to stay safe.
1. Fake Investment Platforms and Celebrity Endorsements
One of the oldest tricks in the book is also one of the most effective: fake investment opportunities. In the crypto world, these usually come disguised as slick websites, social media ads, or even messages from people pretending to be successful crypto “mentors.” They promise massive returns with little to no risk—and they often use fake celebrity endorsements to make the offer seem legit.
Scammers frequently impersonate public figures like Elon Musk, Mark Cuban, or MrBeast, showing doctored videos or screenshots claiming they’ve “partnered” with a platform or are “giving away” free bitcoin. The ads often direct users to a professional-looking investment site, where victims are asked to deposit crypto to join the program or unlock the giveaway.
Once the crypto is sent, it’s gone. The site goes dark, the social media accounts vanish, and the scammer moves on.
How to Avoid This Scam
- Never trust “guaranteed” returns. Crypto investments are volatile by nature.
- Always verify the platform. Check for real reviews and confirm domain legitimacy.
- Be skeptical of celebrity promos. Visit the official channels of public figures before believing any financial endorsement.
- Don’t send crypto to “verify” your wallet. That’s just a trick to steal your coins.
2. Rug Pulls and Fraudulent Tokens
Ever heard of a coin that skyrockets overnight, only to crash to zero the next day? That’s likely a rug pull—a crypto scam where the creators hype up a token or project, get people to invest, and then disappear with the money.
One of the most infamous examples was Squid Coin, named after the hit Netflix show. It jumped from a few cents to nearly $90, only for the creators to pull the plug. Investors were left with tokens they couldn’t sell, and the developers vanished with over $3 million.
Rug pulls are especially common in NFTs and initial coin offerings (ICOs). Developers often create buzz through Telegram groups, social media influencers, and aggressive promotion. Once the project gets enough traction and funding, the smart contract is coded in a way that blocks users from selling—and that’s when the scammers cash out and vanish.
How to Avoid This Scam
- Do your research. Look into the project’s team, whitepaper, and code audit (if available).
- Check liquidity locks. If the project hasn’t locked liquidity, it’s easier for the devs to drain funds.
- Avoid hype-driven buys. If a coin’s price is spiking without a clear reason, that’s a red flag.
- Be cautious with new tokens. Many rug pulls happen within days of a token’s launch.
3. Romance and Social Manipulation Scams
Crypto scams aren’t always about flashy websites or fake coins—sometimes, they’re heartbreakingly personal. Romance scams, often referred to as pig butchering, involve long-term manipulation, where the scammer builds trust and emotional connection before striking.
These scams usually begin on dating apps or even social media platforms. The fraudster plays the long game, chatting daily, building a fake relationship, and eventually steering the conversation toward “exciting investment opportunities.” They’ll claim to have insider knowledge or a secret strategy and encourage the victim to try it—often even offering to “help” them set up a crypto wallet.
Once the money is transferred, the scammer ghosts. No returns. No love story. Just stolen crypto and emotional devastation.
In 2023 alone, the FTC reported over $1.1 billion in losses tied to romance scams, many of them involving cryptocurrency.
How to Avoid This Scam
- Be cautious with online-only relationships. If someone you’ve never met in person talks about crypto investments, that’s a red flag.
- Don’t mix romance with finance. Legitimate partners won’t pressure you into risky financial moves.
- Watch for urgent language. “You’re missing out” or “Act fast” are classic manipulation tactics.
- Trust your gut. If something feels off, it probably is.
4. Phishing Attacks and Spoofed Wallets
Phishing scams are one of the oldest tricks in cybercrime—and they’re still devastatingly effective in the crypto world. These scams usually start with an email, text message, or fake ad that looks like it’s from a trusted source: your crypto wallet provider, exchange, or even Google.
The message urges you to “verify your wallet,” “log in to prevent account suspension,” or “confirm a suspicious transaction.” But the link takes you to a spoofed website—one that looks real but is designed to steal your private key or login credentials.
And here’s the brutal truth: unlike regular passwords, a crypto wallet’s private key can’t be reset or recovered. Once it’s gone, the scammer owns your assets.
How to Avoid This Scam
- Never click links from unsolicited emails or texts. Go directly to the official website by typing it in.
- Bookmark trusted sites. Only use saved URLs for wallets like MetaMask, Trust Wallet, or Coinbase.
- Use a hardware wallet. Offline wallets store your keys physically, keeping them out of reach from online attacks.
- Enable two-factor authentication (2FA). Add a second layer of security to every crypto-related account.
5. Deepfake AI and Social Media Giveaway Scams
If you’ve seen a video of Elon Musk promising to double your bitcoin, you’re not alone—and you’ve likely encountered a deepfake crypto scam. Thanks to rapidly evolving AI tools, scammers can now create ultra-realistic videos and voice clips of public figures promoting fake tokens or giveaways.
These scams often show up on platforms like Twitter, YouTube, or TikTok, using real footage spliced with AI-generated content to claim that a well-known tech leader is backing a new crypto project or giving away free coins. Victims are directed to a polished site, where they’re asked to send a small amount of crypto to “verify their wallet” or “activate the giveaway.”
Once sent, the funds vanish—and the site disappears soon after.
How to Avoid This Scam
- Assume every giveaway is fake unless confirmed on the celebrity’s official page.
- Never send crypto to “verify” your account. That’s just theft with extra steps.
- Look for telltale signs in videos. Deepfakes often have mismatched lip syncs or robotic speech.
- Report scam posts. Platforms are trying to crack down, but they need user reports to act quickly.
How to Spot a Crypto Scam
Crypto scammers follow patterns—and once you know the signs, they’re much easier to avoid. Here’s a quick checklist of red flags:
✅ Promises of guaranteed or fast returns
✅ Pressure to act urgently or secretly
✅ Requests for crypto payments only
✅ Unverified celebrity endorsements
✅ Poor grammar or spelling errors in messages or websites
✅ Requests to “verify your wallet” by sending funds
✅ Platforms with no public team or audit history
✅ Fake customer testimonials or review bots
✅ Too-good-to-be-true giveaways requiring upfront payment
✅ Links sent from random social media DMs or emails
If any of these show up, pause. Research. And don’t click or send anything until you’re 100% sure.
Protecting Yourself and Your Crypto
Cryptocurrency doesn’t come with a customer support hotline or fraud protection—you are your own security system. That’s why it’s critical to:
- Use hardware wallets for long-term storage.
- Keep your private keys offline and never share them.
- Bookmark exchange and wallet URLs to avoid spoofed sites.
- Stay updated on the latest scam tactics.
- Enable 2FA on every crypto-related platform.
- Never invest money based solely on social media buzz or “insider tips.”
And if you’ve been targeted or scammed, report it. Fast.
Where to Report a Crypto Scam
Also, alert your crypto exchange provider so they can flag suspicious wallet activity.
Stay sharp. Stay safe. And when in doubt—don’t send the crypto out.
