The cryptocurrency industry is developing rapidly, and therefore the interest in it from scammers and fraudsters is growing just as quickly. We want to share our experience with you and warn our clients against possible financial losses.
Before we start looking at the main fraud scenario, let's understand the difference between "scam" and "fraud."
Scam - is a situation where the victim has been tricked into authorizing a payment.
Fraud - is where payment is made without the authority of the customer.
Example of scam schemes
Fake 911 Calls
Scammers have started making fake emergency calls, claiming to be from local authorities or emergency services. They may ask you to send Bitcoin or other crypto as a “ransom” or “bail money.”
Remember: No emergency or government agency will ever ask you to send cryptocurrency. Stay calm, hang up, and report any such calls to the authorities.
Cloud Mining Scams
Cloud mining can sound like a great way to earn crypto passively, but if a service asks for Bitcoin upfront to start mining, it's likely a scam. These fraudsters promise profits, but once you send your payment, they disappear.
Tip: Always check if the mining service accepts traditional payments like bank transfers. Fraudsters often avoid providing this option.
Technical Support Scams
Scammers may pose as tech support representatives and contact you to offer assistance or “extend a subscription.” They might ask for personal documents via video calls or request remote access to your device.
Caution: Legitimate companies will never ask for sensitive personal information in this manner. Always verify support requests through official channels.
Government Authority Scams
Fraudsters may impersonate government agencies, claiming you owe taxes or fines and demanding payment in cryptocurrency. They often threaten arrest or legal consequences to create a sense of urgency.
Tip: No legitimate government will ever demand cryptocurrency payments. Always verify any official communication directly with the agency.
Online Gaming Scams
Scammers frequently target gamers by offering in-game items or currency in exchange for cryptocurrency. They may appear on gaming forums, promising rare loot or services, but once you send your crypto, you’ll never hear from them again.
Be cautious: Always check for reviews of sellers and never send crypto to someone you don’t know personally.
Fake Online Stores
Fraudsters create fake online shops that offer products at steep discounts—often only accepting cryptocurrency. Once you send the payment, they disappear with your funds.
Tip: Stick to well-known, verified online retailers and avoid deals that seem too good to be true.
Dating Scams
Some scammers use dating sites or social media to build a relationship and then fabricate a crisis or emergency that requires money—often in cryptocurrency—to "help" them.
Warning: Never send crypto to someone you've never met in person, no matter how convincing their story may seem.
Payment Recovery Scams
If you've been a victim of crypto fraud, scammers may reach out, offering to help you recover your lost funds—usually for an upfront payment in crypto. Once they have your money, they vanish.
Advice: Cryptocurrency transactions are irreversible, so be extremely cautious when dealing with anyone promising to recover lost funds.
Airbnb Scams
Some scammers impersonate Airbnb representatives, asking for Bitcoin deposits for property rentals. They often create fake websites or phishing links that look almost identical to the real Airbnb site.
Tip: Airbnb does not accept Bitcoin for payments. Always double-check website URLs and communication channels before making any payments.
Job Offer Scams
Scammers often send fake job offers, claiming that you need to pay a fee in cryptocurrency to secure a position or complete training. Legitimate employers will never ask for payment in any form before hiring.
Reminder: Never pay for a job opportunity. If an offer seems too good to be true, it probably is.
Pump and Dump Schemes
In these scams, groups of people (often on social media) artificially inflate the price of a little-known cryptocurrency by encouraging others to buy. Once the price rises, the fraudsters sell off their holdings, causing the price to crash and leaving victims with worthless coins.
Tip: Always do your own research before investing. Be wary of sudden price surges or hype created by unknown groups.
Fake ICOs (Initial Coin Offerings)
Some scammers launch fake ICOs, promising huge returns or revolutionary technology. Once they collect funds, they disappear, leaving investors with nothing.
Be cautious: Verify any ICOs by researching their whitepapers, developer teams, and community feedback. If transparency is lacking, it’s probably a scam.
Phishing Scams (Fake Crypto Wallets and Exchanges)
Fraudulent websites and apps impersonate popular crypto wallets and exchanges, aiming to steal your login credentials or drain your funds. They often look almost identical to the official sites.
How to protect yourself from scams?
1. Never Share Your Private Keys or Seed Phrases
Your private key or seed phrase is like the PIN to your bank account. Anyone who has access to it can access your crypto wallet. No legitimate service will ever ask you for this information.
Remember: If someone asks for your seed phrase, they are trying to steal your funds.
2. Stay Skeptical of “Too Good to Be True” Offers
From fake giveaways to miracle investment schemes, if someone promises guaranteed returns or fast money, it’s almost always a scam.
Rule of thumb: If it sounds too good to be true, it is.
3. Research Everything Thoroughly
Before sending money, investing, or sharing your personal information, do your research:
-
Google the company or person’s name + “scam”
-
Look for reviews or discussions on trusted forums like Reddit or Trustpilot
-
Check if the company is registered and has a physical presence
4. Avoid Unsolicited Contact
Whether it’s a “recruiter,” “tech support,” or someone who “fell in love with you overnight,” always be wary of people who contact you out of the blue—especially if money or crypto is involved.
Pro tip: Legitimate companies don’t reach out on WhatsApp or Telegram to ask for crypto.
5. Stick to Reputable Exchanges and Wallets
Only use well-known and reviewed platforms for buying, selling, and storing cryptocurrency. Check that the website uses HTTPS and never click on suspicious or shortened links.
Bonus tip: Bookmark the official website so you always go to the right one.
6. Enable Two-Factor Authentication (2FA)
Add an extra layer of security to your accounts by enabling 2FA using apps like Google Authenticator or Authy. Avoid SMS 2FA if possible, as it's more vulnerable to SIM-swap attacks.
7. Use Official Apps Only
Only download wallets, trading apps, or tools from official app stores or directly from the provider’s website. Check reviews and the developer’s identity before downloading anything.
8. Protect Your Personal Info
Don’t send photos of your ID, passport, credit card, or any other sensitive documents unless you’re 100% sure you’re dealing with a legitimate company—and even then, proceed with caution.
9. Don’t Pay for Jobs, Prizes, or “Recoveries”
Legitimate companies will never ask you to pay to get a job, collect a prize, or recover lost funds. These are always scams.
10. Keep Records of All Transactions
Keep screenshots, email receipts, and transaction records in case you ever need to file a police report or dispute a payment. While crypto transactions are irreversible, this documentation can help in some recovery attempts or legal steps.
If you're ever unsure, pause. Talk to someone you trust, or contact our customer support before sending any crypto or personal info.