What are crypto scams?

Your wallet’s “support team” messages you and asks you to confirm your details: who’s really on the other end? In crypto scams, the scammer often doesn’t need to hack any system. They persuade you to open the door for them yourself.

Imagine someone wearing a repair technician’s uniform to get into your home. In crypto, the “uniform” might be a copy of a well-known exchange, a fake social media account or an app that shows nonexistent profits. You put money in, you watch your balance go up, but when you ask to withdraw, a so-called tax suddenly appears that you have to pay first.

Other forms include phishing, which steals passwords or your seed phrase (recovery phrase), and Ponzi schemes, where newer deposits fund payouts to earlier participants. In a rug pull, a project’s creators may pull the liquidity and abandon the token’s holders.

Why it matters

Confirmed transfers on a blockchain usually can’t be reversed like a pending bank payment. If you send crypto to a scammer, there is no central operator guaranteeing its return. A malicious approval can also let an app move specific tokens out of your wallet without knowing your private key.

We consider this distinction crucial: a falling price or a failed project doesn’t by itself prove a scam. Deliberate deception and theft are different things from investment risk.

What to watch out for

Promises of guaranteed profits, pressure to act immediately and requests for secret details are serious red flags. Never share your seed phrase or private key with “support,” forms or chats. Check the website address through an independent route and read what you’re approving in your wallet.

If you suspect a scam, stop all payments and keep the messages, wallet addresses and transaction IDs. Contact the exchange you used and the relevant law enforcement authorities. Also beware of anyone promising “guaranteed recovery” for an upfront fee: they may be attempting a second scam.