Ethereum & Stablecoins Scams
Scams using Ethereum, USDT, and USDC — wallet drainers, fake DeFi, and more.
Last reviewed: 1 June 2026
Ethereum's smart-contract capabilities and the growth of stablecoins like USDT and USDC have expanded what scammers can do beyond simple transfers. Malicious smart contracts can drain entire wallets in a single interaction, fake DeFi platforms mimic legitimate protocols, and stablecoins are increasingly requested as the payment leg of investment and romance scams because they feel less volatile — and therefore more credible — than speculative tokens.
This guide covers the fraud types most common on Ethereum and stablecoin rails, the warning signs, and how to protect your assets.
Common scams using Ethereum & Stablecoins
Wallet drainer smart contracts
Phishing sites prompt users to sign a malicious transaction that authorises the site's contract to move all tokens from the wallet.
Fake DeFi and yield platforms
Scam platforms mimic real DeFi protocols, showing attractive yields until withdrawal is blocked and funds disappear.
USDT/USDC payment demands in scams
Romance, investment, and task scammers request stablecoin transfers as the final payment leg, citing speed or availability.
Rug-pull token launches
Tokens are promoted heavily, liquidity is removed by developers after enough investment, and the token becomes worthless.
Common red flags
- Wallet connection requests on sites you were directed to via DM or email
- Platforms showing returns that far exceed comparable legitimate protocols
- Any scammer-type contact requesting USDT or USDC specifically rather than bank transfer
- Smart contract approval requests for unlimited token amounts
- Token projects with anonymous teams and no verifiable code audit
How to protect yourself
- Review token approval amounts before signing any transaction — never approve unlimited spend
- Use a hardware wallet for significant holdings and connect only to verified protocols
- Check contract addresses on blockchain explorers before interacting
- Use a revoke tool (such as revoke.cash) periodically to cancel unnecessary approvals
- Research DeFi platforms on independent security-review aggregators before depositing
How to report it
- Report wallet-draining contracts to the relevant blockchain explorer flagging service
- Submit a report to your national fraud authority including wallet addresses and transaction hashes
- Report scam DeFi platforms to the platform's official security disclosure programme if one exists
Frequently asked questions
Are stablecoins safer to use than Bitcoin in peer-to-peer transactions?
Stablecoins eliminate price volatility but share Bitcoin's irreversibility. A stablecoin transfer to a scammer is just as unrecoverable as a Bitcoin transfer. The request for stablecoins is a red flag, not a safety signal.