Crypto Scams
Fraud built around cryptocurrency — fake exchanges, wallet-draining links, giveaway scams and bogus trading platforms.
Last reviewed: 1 June 2026
What this scam is
A crypto scam is any fraud that uses cryptocurrency to take your money or steal your digital assets. Because crypto transactions are fast, borderless, and usually irreversible once confirmed on the blockchain, cryptocurrency has become the payment method of choice for many types of scammer.
Crypto scams take many forms. Fake exchanges mimic legitimate platforms but funnel deposits directly to scammers. Wallet-draining attacks trick you into connecting your wallet to a malicious site that empties it in seconds. Giveaway or 'doubling' scams promise to return twice what you send. Investment platforms show fabricated profits to keep you depositing. Rug-pull schemes launch new tokens, attract investors, then vanish with the funds.
The underlying technology — blockchain — is genuinely transparent, but that transparency does not protect you from being deceived into sending funds voluntarily. Once crypto leaves your wallet to an address you don't control, it is typically gone. This irreversibility is what makes crypto scams particularly damaging and why recovery is so difficult.
How it works
You are introduced to a platform, token, or 'mentor', often via social media, a dating app, or a group chat. The contact may spend time building trust before any financial suggestion arises. When crypto is eventually mentioned, it is framed as an obvious opportunity with insider knowledge behind it.
You buy cryptocurrency on a legitimate exchange, then send it to the scammer's platform or wallet address. The dashboard shows growing profits. When you try to withdraw, you discover the withdrawal is blocked behind fees, taxes, or a 'minimum balance' requirement.
In wallet-draining scams, the attack is faster. You are prompted to connect your wallet to a website — perhaps to claim an NFT, verify ownership, or access a platform. Connecting and approving a transaction may grant the attacker permission to transfer all your tokens without further authorisation. The drain can happen within seconds.
In giveaway scams, you send crypto to a wallet and are promised double back. The return never comes. These often impersonate well-known figures, exchanges, or high-profile events to appear legitimate.
Why this scam works
Cryptocurrency scams are effective partly because the technology itself is unfamiliar to many people — and unfamiliarity makes it hard to distinguish genuine complexity from fabricated complexity. A scammer can invent technical-sounding requirements ('gas fees', 'liquidity locks', 'KYC deposits') that sound plausible to someone new to crypto.
The promise of fast, asymmetric gains is also powerful. Crypto has genuinely produced extraordinary returns for some early adopters, and this fact is weaponised. FOMO — the fear of missing out — is deliberately triggered by urgency tactics.
Anonymity and irreversibility remove the friction that protects people in traditional finance. There is no bank to call, no chargeback, no cooling-off period. Once sent, funds are gone. Scammers exploit the gap between the perceived complexity of blockchain and the victim's desire not to appear naive.
A typical pattern
A person in a group chat sees a message about a crypto investment platform offering strong returns. They visit the platform via a shared link, create an account, and deposit a small amount. The balance climbs daily. They deposit more. A withdrawal request triggers a message saying a 'tax clearance fee' must be paid first. They pay it. A second fee is demanded. The platform becomes unavailable. The group chat disappears. All messages from the contact are deleted.
Common red flags
- Requests to pay or invest in crypto from someone you met online
- 'Double your coins' or giveaway promises
- A platform or app you were told to download outside official app stores
- Withdrawal blocked until you pay tax or fees
- Being asked to connect your wallet or sign a transaction to 'verify'
- Celebrity, exchange, or brand-endorsed giveaway on social media
- Unusually high APY or 'guaranteed' staking returns
- Token or project with anonymous team, no audited smart contract, and no track record
- Pressure to act before a window closes or a 'whitelist' fills up
Sanitized example messages
Illustrative, sanitized examples. Personal details are replaced with placeholders such as [phone number] and [fake link].
Send 0.5 ETH to [wallet address] and our smart contract returns 1 ETH instantly — verified by [fake brand].
To unlock your withdrawal of [amount], deposit a 10% miner's fee to [wallet address].
[Platform] is giving away 10,000 BTC to celebrate our anniversary. Send [amount] to [wallet address] to receive double back. Limited time only.
Your account has been flagged. To restore access and protect your balance, verify your wallet by connecting at [fake link] within 2 hours.
We're launching [token] next week — only [number] whitelist spots left. Send [amount] ETH to [wallet address] to secure yours before it sells out.
Our DeFi staking pool offers 180% APY guaranteed. Connect your wallet at [fake link] to start earning today.
Common variations
- Fake crypto exchange or investment platform showing fabricated profits
- Wallet-draining attack via a malicious smart contract connection
- Giveaway or coin-doubling scam impersonating a celebrity or exchange
- Rug pull: new token promoted then abandoned by anonymous developers
- Pig-butchering: relationship-based long-con leading to fake trading platform
- NFT scam: fake mint site or approval phishing draining an NFT wallet
How to verify before you act
Before sending any cryptocurrency, complete these checks.
Verify any platform or exchange through your financial regulator's register and through independent reviews from established publications. Never install a crypto app from a link — only use apps from official app stores.
For wallet connections, check the website URL character by character before connecting. Legitimate platforms do not require you to connect your wallet to 'verify', 'unlock', or 'claim' anything that was not explicitly part of a transaction you initiated.
For any investment platform, check whether it is registered with a financial regulator. Search for the platform name alongside 'scam', 'warning', or 'review'. Look for audited smart contracts (for DeFi) and a verifiable team with a track record.
For giveaways, remember that no legitimate exchange, celebrity, or project has ever run a 'send crypto to receive double back' promotion. These are always scams.
Payment methods used
- Cryptocurrency
- Bank transfer to buy crypto
- Stablecoins
Who is usually targeted
- New crypto investors
- People chasing fast gains
- Victims of romance scams steered into 'trading'
What to do immediately
- Stop all transfers immediately and do not pay any 'unlock', 'tax', or 'miner fee' demand
- Revoke wallet permissions immediately if you connected to a suspicious site — use a tool such as revoke.cash or your wallet's connection manager
- Move any remaining assets to a new wallet address you control
- Record all wallet addresses, transaction hashes, and platform URLs before they disappear
- Report to your national fraud service and the exchange you used to buy the crypto
- Contact your bank if you transferred regular money to buy crypto for this scheme
- Be wary of 'crypto recovery' services that approach you — most are follow-up scams
How to prevent it
- Only use crypto exchanges and wallets that are well-established and regulated where possible
- Never send crypto to someone you met online as part of an 'investment opportunity'
- Verify every website URL before connecting a wallet — use bookmarks rather than clicking links
- Regularly review and revoke wallet permissions for any site you no longer use
- Never install crypto apps from links — only use official app stores
- Be sceptical of any opportunity promising guaranteed or unusually high returns
- Treat all giveaway or coin-doubling promotions as scams regardless of apparent endorsement
Evidence to preserve
- Transaction hashes and all wallet addresses involved
- Screenshots of the platform, dashboard, and any profit displays
- Full chat history and the contact's profile details
- The app file or website URL you were directed to
- Any smart contract addresses you interacted with
- Email addresses, phone numbers, or usernames used by the contact
Where to report it
- Action Fraud (UK) — UK national fraud & cybercrime reporting centre
- FTC ReportFraud (US) — US Federal Trade Commission fraud reports
- FBI IC3 (US) — US Internet Crime Complaint Center
- Scamwatch (Australia) — Australian competition & consumer reporting
- Your exchange's support/abuse team — Report the destination wallet; some can flag it
Always verify reporting routes and emergency contacts on the official government or agency website for your country.
Frequently asked questions
Can crypto sent to a scammer be recovered?
Usually not. Crypto transfers are typically irreversible once confirmed. Be extremely wary of 'recovery experts' who contact you promising to retrieve it for a fee — they are almost always a follow-up scam.
What does revoking wallet permissions mean?
When you connect your wallet to a website and approve a transaction, you may have granted that contract ongoing permission to move your tokens. Revoking permissions cancels that access. Tools like revoke.cash let you see and revoke these approvals for free.
How do I know if a crypto platform is legitimate?
Check whether it is registered with a financial regulator in your country. Search for independent reviews, not testimonials on the site itself. Look for a verifiable address, audited code for DeFi platforms, and a track record. If it was introduced by someone online, treat it as high-risk.
Is it safe to connect my wallet to websites?
Only connect your wallet to well-known, verified platforms you have researched independently. Check the URL carefully before connecting. Never connect to a site you found through a message, social media post, or unsolicited link.
What is a rug pull?
A rug pull is when the creators of a new crypto token or DeFi project attract investment then withdraw liquidity or abandon the project, leaving investors with worthless tokens. Signs include anonymous teams, no audited smart contracts, and heavy promotion with little substance.
Are crypto scam recovery services real?
Genuine blockchain forensics firms exist, but unsolicited approaches claiming they can recover your crypto for an upfront fee are almost always scams targeting previous victims. Use only services you find independently, not ones that contact you.