Scam 1: Advanced phishing attacks
Advanced phishing attacks now focus on cryptocurrency wallets and exchange accounts using complex strategies that take advantage of user confidence to steal private keys or login credentials.
Criminals deploy advanced phishing tactics by setting up counterfeit websites that closely resemble legitimate platforms. They dispatch fraudulent emails masquerading as trusted entities or employ social engineering methods to deceive victims into providing sensitive information. Some impersonate support personnel or create cloned interfaces to obtain information.
Attackers may utilize advanced techniques for these phishing schemes:
Wallet drainers: These are malicious programs or scripts used during phishing attacks. If a victim connects their wallet to a fraudulent site and authorizes a harmful transaction or grants token permissions, the attacker can automatically transfer funds out of the wallet.
Quishing: Scammers utilize harmful QR codes inserted into emails, text messages, or on public displays. When scanned, these codes redirect users to phishing sites or initiate harmful downloads that steal personal, financial, or credential information.
Spear phishing: Unlike generic phishing, this strategy zeroes in on specific individuals or organizations. Scammers craft tailored messages, frequently employing urgent language like “Immediate Action Required.” The aim is to induce panic and coerce victims into hasty, costly errors.
In August 2025, Zak Cole, a principal Ethereum developer, realized his crypto wallet had been emptied following the theft of his private key through a malicious Cursor extension. Earlier that year, in May 2025, an elderly American fell prey to a $330-million Bitcoin (BTC) theft, where the attacker employed sophisticated social engineering tactics to gain access to the victim’s wallet.
Did you know? The first recorded Bitcoin scam can be traced back to 2011, when a Ponzi scheme named “Bitcoin Savings & Trust” guaranteed investors 7% weekly returns, ultimately defrauding them out of over 700,000 BTC.
Scam 2: Rug pulls
Scammers frequently capitalize on the enthusiasm surrounding decentralized finance (DeFi) platforms and non-fungible token (NFT) initiatives to mislead investors. A prevalent tactic is the rug pull, where developers abruptly withdraw liquidity and vanish with investors’ funds.
These schemes often mimic legitimate endeavors, promising extraordinary returns or exclusive digital assets, but eventually divert funds from unsuspecting users. Many are overhyped projects relying on social media buzz without providing actual value. Others are cloned platforms replicating trusted DeFi or NFT websites to deceive users into depositing their assets.
Warning signs of rug pulls entail unrealistic pledges of high returns with minimal or no risk, a lack of transparent audits or public code, and anonymous teams reluctant to disclose their identities or qualifications.
Since the start of 2025, rug pulls have resulted in losses approaching $6 billion across the Web3 ecosystem. In contrast, total losses from rug pulls during the same span in early 2024 were around $90 million.
A notable example is the LIBRA token on the Solana network. The token’s market value skyrocketed to $4.56 billion after being mentioned by Argentine President Javier Milei on X. Following the deletion of the post, the token’s value plummeted by over 94%, leading to allegations of a rug pull.
Scam 3: Impersonation
Impersonation—often witnessed on social media—represents a significant threat to the crypto sphere, undermining trust and resulting in substantial losses. Scammers frequently impersonate trusted influencers, developers, or support staff on platforms like X.
In impersonation scams, fraudsters infiltrate discussions or fabricate fake profiles to exploit users seeking quick profits. They often host counterfeit giveaways, pledging doubled returns in exchange for small “verification” deposits. Scammers may also run impersonation accounts duplicating celebrities or send direct messages pretending to be exchange support to gain wallet access or prompt urgent fund transfers.
Warning signs include accounts with minor misspellings (e.g., “@ElonMuusk”), unverified profiles lacking verification badges, and any demands for direct cryptocurrency transfers, as legitimate entities never request these.
In 2024, cryptocurrency scams cost victims $9.9 billion globally, with impersonation contributing to a fourfold increase, as reported by the Federal Trade Commission. In Hong Kong, scammers impersonated Chief Executive John Lee via a fake X account and a deepfake video endorsing a supposedly government-backed digital currency.
Did you know? Despite advancements in blockchain security, scams persist in their evolution. In 2024-25, scammers transitioned from hacking smart contracts to manipulating human behavior. By 2025-26, their strategies became even more sophisticated.
Scam 4: AI-powered deepfake scams
AI-powered deepfake scams have surfaced as a major danger, utilizing advanced technology to deceive users and misappropriate assets. Criminals now harness artificial intelligence to generate highly realistic videos or voice clones of prominent executives, influencers, and celebrities.
Trained on publicly available content such as interviews, podcasts, and YouTube videos, AI-driven deepfakes exhibit high levels of credibility. They can easily deceive even the most cautious users into believing fraudulent narratives.
In August 2024, The New York Times dubbed a deepfake version of Elon Musk “the internet’s biggest scammer.” One victim, Steve Beauchamp, an 82-year-old retiree, was so convinced by the video that he invested his entire retirement savings of $690,000 over a series of weeks. The funds vanished without a trace, and many others have also fallen victim to similar scams.
Quantum AI was an allegedly fraudulent online investment program falsely claiming to employ AI and quantum computing to yield high returns for investors. The scammers allegedly manipulated their website to show fabricated trading results and utilized deepfake videos for scheme promotion.
Deepfakes blur the distinction between genuine and fraudulent communication. They exploit trust, urgency, and FOMO (fear of missing out), rendering them a significant threat.
Did you know? Crypto romance scams soared during the pandemic and persist into 2025. Scammers establish trust on dating platforms before pitching fake “investment opportunities,” ultimately leading victims to part with their life savings.
Scam 5: Crypto support
Fake crypto support scams are an escalating threat, targeting users with misleading promises of assistance to siphon money or sensitive data. Fraudsters commonly impersonate customer support representatives from trusted exchanges or wallet providers.
Scammers impersonating customer support agents reach out to victims via social media platforms like X and Telegram or through counterfeit websites closely resembling official domains. By offering what seems like legitimate help, they exploit user trust.
These scammers often distribute phishing links disguised as support portals, promote “wallet recovery” services that demand private keys or seed phrases, or offer counterfeit refunds designed to deplete accounts. Such tactics prey on users already experiencing technical difficulties or seeking rapid solutions.
A notorious crypto support scam surfaced following the Coinbase data breach in May 2025, where leaked personal information—including names, addresses, ID images, and banking details—was allegedly exploited. Criminals posing as Coinbase support contacted victims, pressuring them to provide security codes, two-factor authentication (2FA) details, or to transfer assets to fraudulent wallets.
