Crypto Scam: The 12 Types of Fraud to Know and How to Protect Yourself (2026)

A crypto scam is a fraud designed to steal cryptocurrency or money from victims by exploiting lack of knowledge, greed, or psychological manipulation. In 2024, global losses from crypto scams exceeded $5.6 billion according to the FBI — a record high.

This comprehensive guide covers the 12 most common types of scams in 2025-2026, the warning signs to spot, and concrete measures to protect your investments. Whether you’re a beginner or experienced investor, knowing these traps is your best protection.

The 12 Most Common Crypto Scams in 2026

1. Phishing — 32% of scams

Phishing is the most widespread crypto scam. Its principle: tricking you into revealing your login credentials, passwords, or private keys by impersonating a legitimate platform (Binance, Coinbase, MetaMask, Ledger).

Common techniques:

• Emails mimicking the official design of a platform
• Fake websites with deceptive URLs (binance-support.com, metamask-connect.io)
• Urgent messages: “Your account will be suspended in 24 hours!”
• Fake tech support on Telegram or Discord

How to protect yourself:

• Check the URL in the address bar (https:// + official domain)
• Never click on links in emails — type the address manually
• Enable two-factor authentication (2FA) with an app (not SMS)
• Be suspicious of any message asking for sensitive information

2. Pig Butchering — 24% of scams

Pig butchering is a particularly insidious romance scam. A fraudster builds a relationship of trust over weeks or months before proposing a “crypto investment.”

How it works:

1. First contact: a stranger reaches out on Telegram, WhatsApp, Instagram, or a dating app
2. Grooming: daily conversations, building an emotional or romantic connection
3. Proposal: “I’m making great returns with this platform, I can help you”
4. Escalation: fake gains displayed, pressure to invest more and more
5. Butchering: disappearance with all funds

Warning signs:

• Unsolicited contact who quickly mentions money
• Refuses video calls or in-person meetings
• Unknown or unregulated investment platform
• “Gains” shown via screenshots (easily faked)

3. Fake Trading Bots and AI Platforms — 18% of scams

The AI hype has spawned a new generation of scams. Platforms promise automatic returns through “revolutionary algorithms” or “ultra-performant AI bots.”

Typical promises:

• “Earn 10% daily on autopilot”
• “Our AI predicts the market with 99% accuracy”
• “No knowledge required, the robot does everything”

Reality: no bot can guarantee profits. Trading always involves risk. These platforms display fake gains to encourage more deposits — before vanishing.

4. Rug Pulls — 12% of scams

A rug pull occurs when creators of a crypto project suddenly abandon it and disappear with investors’ funds.

Two variants:

• Soft rug: team gradually sells their tokens, slow price collapse
• Hard rug: sudden liquidity removal, price drops to zero instantly

Very common with memecoins as they’re easy to create and promote. Always check: who holds the tokens? Is liquidity locked? Can the contract block sales?

5. Ponzi Schemes and MLM Crypto — 8% of scams

Ponzi schemes promise high fixed returns (5-10% monthly) funded by new entrants’ money. When recruitment slows, the system collapses.

Characteristics:

• Gains depend on referrals
• No real product or service
• “Too stable” returns (2% weekly with no fluctuation)
• Pyramid structure with multiple commission levels

Famous cases: BitConnect ($2.4 billion), OneCoin ($4 billion), PlusToken ($2 billion).

6. Fake Crypto Courses — 3% of scams

“Trainers” sell courses at premium prices ($1000-5000) promising to make you rich. In reality, the content is often basic, freely available elsewhere, or worse — a gateway to fraudulent investments.

Warning signs:

• Promises of quick wealth (“Become a millionaire in 30 days”)
• Trainer unfindable or with no verifiable experience
• Fake testimonials with generic photos
• Pressure to buy (“Discounted price today only”)
• Redirection to an obscure trading platform

7. Fake Airdrops and Giveaways

Scammers promise airdrops (free token distributions) or giveaways (“Send 0.1 ETH, receive 1 ETH”). These scams exploit the appeal of “free” money.

Common variants:

• Fake Elon Musk or celebrity Twitter/X accounts
• Sites asking you to connect your wallet to “claim” tokens
• Requests for “unlock fees” to receive an airdrop

Golden rule: a real airdrop never asks you to send money first.

8. Fake Tech Support Scams

Scammers impersonate MetaMask, Ledger, Coinbase or other platform support on social media. They respond to users having issues and request sensitive information.

Techniques:

• Monitoring hashtags and mentions of problems
• Quick response with an account mimicking official support
• Request to “sync” the wallet via a fake site
• Direct request for seed phrase “to resolve the issue”

Remember: no legitimate support will EVER ask for your recovery phrase.

9. Influencer Impersonation

Scammers create fake accounts mimicking well-known crypto influencers to promote scams. They use the same photos, similar names, and replicate communication styles.

Checks to make:

• Verification badge (blue checkmark)
• Follower count and account age
• Exact spelling of username
• Cross-reference with other official networks

10. Pump & Dump

A group buys a low-liquidity token massively, artificially pumps the price through aggressive marketing, then sells everything at the top — leaving late buyers with worthless tokens.

How to spot it:

• Sudden, intensive promotion of an unknown token
• Promises of “guaranteed x100”
• Telegram groups with trading “alerts”
• Volume exploding without fundamental reason

11. NFT Scams

The NFT market is rife with scams:

• Fake NFTs: copies of original works sold as authentic
• Wash trading: fictitious sales to artificially inflate price
• Collection rug pulls: team disappears after initial sale
• Malicious links: mint sites that drain your wallet

12. Ransomware

Malicious software encrypts your files and demands a ransom in Bitcoin or Monero to unlock them. In 2024, ransomware attacks increased by 62% according to Europol.

Prevention:

• Don’t open suspicious attachments
• Keep software updated
• Make regular offline backups
• Use up-to-date antivirus software

Famous Crypto Scams

Some of the largest crypto scams in history:

• BitConnect (2018): classic Ponzi scheme, $2.4 billion in losses worldwide
• OneCoin (2014-2017): fictitious “cryptocurrency,” $4 billion stolen globally
• PlusToken (2019): Chinese Ponzi targeting Asia, $2 billion in losses
• FTX (2022): exchange collapse and fund misappropriation, $8+ billion lost
• Celebrity impersonation scams: fake ads using Elon Musk, MrBeast, etc.

How to Verify if a Platform is Legitimate

1. Check Regulatory Blacklists

Financial regulators maintain lists of fraudulent sites:

• SEC (US): sec.gov/tcr
• FCA (UK): fca.org.uk/scamsmart
• AMF (France): protect-epargne.amf-france.org
• ASIC (Australia): moneysmart.gov.au

2. Verify Licensing

Legitimate platforms are registered with regulators. Check official registries for licensing status.

3. Search “[name] + scam”

A simple Google search often reveals victim testimonials or warnings.

4. Check Terms and Legal Information

A legitimate platform displays:

• Registered office address
• Registration number
• Clear terms and conditions
• Multiple contact methods (not just Telegram)

Crypto Platforms in 2025: How to Choose Without Getting Scammed

How to choose the right crypto exchange in 2025? Security, fees, regulation, user experience: complete guide to avoid traps and invest safely.

Read more

What to Do If You’re a Victim of a Crypto Scam

1. Act Quickly

• Immediately cease all contact with the scammer
• Don’t make any more payments (even if promised you’ll recover funds)
• Secure your other accounts (change passwords)

2. Report the Scam

• US: FBI IC3 (ic3.gov), FTC (reportfraud.ftc.gov)
• UK: Action Fraud (actionfraud.police.uk)
• EU: Local police + national financial regulator
• Crypto-specific: Report to the impersonated platform

3. File a Police Report

File a report with local police with all evidence:

• Screenshots of all exchanges
• Proof of transfers made
• Wallet addresses involved
• URL of the fraudulent site

4. Beware of “Recovery” Services

WARNING: scammers target scam victims promising to recover their funds for a fee. This is a double scam. No service can recover stolen cryptocurrencies.

The 10 Golden Rules to Avoid Crypto Scams

1. If it sounds too good to be true, it’s a scam — guaranteed gains don’t exist
2. Never share your recovery phrase (seed phrase) — NEVER, with anyone
3. Verify before investing — regulatory blacklists, official registries, online searches
4. Be wary of unsolicited contacts — especially if they talk about money
5. Take your time — urgency is a manipulation technique
6. Diversify and limit exposure — only invest what you can afford to lose
7. Use a hardware wallet — for significant amounts
8. Enable 2FA everywhere — with an authenticator app, not SMS
9. Keep learning — understand what you’re investing in
10. When in doubt, don’t act — ask for opinions first