Cryptocurrency is an exciting space filled with innovation and potential, but it also attracts scammers who don’t shy away from exploiting people’s unfamiliarity with this evolving technology. Despite the popular association between crypto and Ponzi schemes, most crypto scams have nothing to do with pyramids. They frequently involve phishing, social engineering, fake customer support accounts, and fake websites designed to steal your personal information. Every day, many unsuspecting users fall victim to scammers who made it a business to prey on their trust or lack of knowledge.

In this guide, we’ll cover the most common crypto scams, explain how they work, and give you the tools to stay safe and protect your assets.

Table of contents

• Introduction: Staying safe in crypto
• The scale of the crypto scam phenomenon
• Common crypto scams and how they work
• How to stay one step ahead
• Conclusion: Protecting yourself in the evolving crypto landscape

The scale of the crypto scam phenomenon

Cryptocurrency fraud is a massive and growing problem. According to data from blockchain analytics firms, crypto scams amounted to billions of dollars in lost assets in recent years, with new and increasingly sophisticated scams emerging all the time. What’s particularly dangerous is how these scams are evolving, exploiting human psychology through social engineering rather than just technical vulnerabilities. Scammers are targeting victims through social media, messaging apps, fake websites, and even posing as trusted figures in crypto communities.

The most common types of scams involve phishing, fake identities, and impersonation schemes—things that are hard to spot at first glance but devastating if you fall for them.

Common crypto scams and how they work

1. Fake support accounts and fake admins

One of the most common social engineering tactic is scammers posing as official customer support on platforms like Twitter, Telegram, or Discord. They use fake accounts that look like real project administrators, developers, or even the CEO of a crypto project. These scammers often message you directly as a response to your question on a public group, offering to help you and guiding you to fake accounts meant to steal your private keys and subsequently your assets.

• How it works: You might reach out for help, or someone might reply to a question in a Telegram or Discord group. The scammer then poses as an admin, customer support or just a friendly helpful lad, sending you a link to a fake website where they instruct you to log in with your wallet or secret phrase. Once you input these details, they drain your wallet.
• How to protect yourself: Always double-check that you are communicating with the legitimate support team. Legitimate admins or project leaders will never ask for your private key or secret phrase. Avoid clicking on links in direct messages, and always use official project websites for support requests.

2. Phishing websites and fake login requests

Scammers create exact replicas of popular crypto project official pages or wallet websites. These phishing websites often appear in ads, search engine results, or even as links in fake emails claiming you need to log in or validate your account due to "security issues."

• How it works: You are tricked into visiting a fake website, where you are asked to log in or sign a transaction. If you input your details, the scammer gets access to your account and assets.
• How to protect yourself: Bookmark official websites and always type the URL manually instead of clicking links in emails or messages. Ensure the site has "https" encryption and double-check for small changes in the domain name. Use a wallet like xPortal for secure wallet management, which offers high levels of protection.

3. Fake giveaways and lotteries

The "you’ve won a prize" scam is another rampant scheme on social platforms like Twitter and Telegram. You’ll receive a message saying you’ve won a large amount of crypto from a lottery you’ve never entered. The catch? They ask you to send a small "fee" to release your prize—or worse, they ask you to log in with your wallet details or private keys to claim it.

• How it works: Scammers bait you with the promise of free crypto in exchange for sending them a small fee or signing into a fake site. Once you comply, they disappear with your money.
• How to protect yourself: If you haven’t entered any lottery, you haven’t won anything. Legitimate giveaways will never ask for upfront fees. Avoid giving out your wallet details or private information under any circumstances.

4. Signing unknown transactions

On blockchain platforms like Ethereum or some Layer 2 chains, signing transactions when accessing a platform is common practice. But scammers take advantage of the fact that most users don’t fully understand what they’re signing. Sometimes, signing an unknown transaction can give scammers access to your wallet or permission to drain your assets.

• How it works: You’re prompted to sign a transaction in your wallet, but the permissions you’re giving might allow the scammer to withdraw funds from your wallet.
• How to protect yourself: Always carefully review the details of what you're signing. If you don’t understand the transaction or didn’t initiate it, don’t sign it. Use trusted wallets like xPortal, which offers robust security features, like on-chain 2FA and clear transaction alerts.

How to stay one step ahead

Scammers are evolving constantly, but there are steps you can take to keep yourself safe:

1. Always use official channels: For support and inquiries, only use the official websites, emails, or social media handles. Bookmark important sites and double-check URLs.
2. Enable two-factor authentication (2FA): Add an extra layer of security to your accounts. We recommend reading more about xPortal's on-chain 2FA solution, Guardians, which provides unique and enhanced protection.
3. Be wary of unsolicited messages: If someone contacts you out of the blue with an offer or request, it’s likely a scam. Legitimate companies will not ask for your private keys or secret phrases.
4. Educate yourself: Stay informed about common scams and keep an eye on the latest security best practices. Our blog post on choosing the right wallet for your crypto needs is a great starting point for understanding the different wallet options and how to secure them properly.
5. Check what you’re signing: Always review the details of every transaction you sign on-chain. If you’re unsure, don’t sign it.

Conclusion

The crypto world offers incredible opportunities but is also a magnet for scammers. Phishing, social engineering, and impersonation are common tactics, and staying informed is your best defense. By understanding how these scams work and taking proactive steps—like using xPortal and enabling two-factor authentication—you can protect your assets and stay one step ahead of the scammers.

‍