Scam 1: Advanced phishing attacks
Advanced phishing attacks now focus on crypto wallets and exchange accounts, employing refined strategies that exploit user trust to steal private keys or login information.
To execute advanced phishing attacks, criminals craft fake websites that imitate legitimate platforms. They send misleading emails posing as trusted entities or apply social engineering tactics to trick victims into providing sensitive information. Some impersonate support staff or construct cloned interfaces to gather information.
Attackers may leverage advanced tactics for these phishing attacks:
Wallet drainers: These are malicious software programs or scripts used in phishing schemes. Once a victim connects their wallet to a fraudulent site and approves a harmful transaction or grants token permissions, the attacker can swiftly transfer funds out of the wallet.
Quishing: Fraudsters employ malicious QR codes placed in emails, text messages, or on public surfaces. Scanning these codes redirects users to phishing sites or initiates harmful downloads that compromise credentials and personal or financial information.
Spear phishing: This tactic specifically targets individuals or organizations. Scammers create personalized messages, often using urgent phrases like “Immediate Action Required.” The aim is to induce panic and press victims into hasty, costly errors.
In August 2025, Zak Cole, a core Ethereum developer, realized his crypto wallet had been drained after a harmful Cursor extension acquired his private key. Earlier that year, in May 2025, an elderly US citizen fell victim to a $330-million Bitcoin (BTC) heist, where the attacker utilized advanced social engineering techniques to access the victim’s wallet.
Did you know? The first documented Bitcoin scam dates back to 2011, involving a Ponzi scheme named “Bitcoin Savings & Trust” that promised investors 7% weekly returns, ultimately defrauding them of over 700,000 BTC.
Scam 2: Rug pulls
Scammers frequently take advantage of the excitement surrounding decentralized finance (DeFi) platforms and non-fungible token (NFT) projects to mislead investors. A prevalent tactic is the rug pull, where developers abruptly withdraw liquidity and vanish with investors’ funds.
These schemes often mirror legitimate operations, promising extraordinary returns or exclusive digital assets while ultimately siphoning funds from unsuspecting users. Many are overhyped projects that thrive on social media chatter without presenting genuine value. Others are cloned platforms replicating trusted DeFi or NFT websites to deceive users into investing their assets.
Warning signs of rug pulls comprise unrealistic promises of high returns with minimal risk, absence of transparent audits or publicly accessible code, and anonymous teams reluctant to disclose their identities or qualifications.
Since early 2025, rug pulls have resulted in nearly $6 billion in losses within the Web3 ecosystem. In contrast, during the same timeframe in early 2024, total losses from rug pulls were only about $90 million.
An illustrative example is the LIBRA token on the Solana network. The token’s market value soared to $4.56 billion after being mentioned by Argentine President Javier Milei on X. Following the deletion of the post, the token’s price plummeted by over 94%, resulting in allegations of a rug pull.
Scam 3: Impersonation
Impersonation — particularly on social media — presents a serious risk to the crypto ecosystem, eroding trust and causing significant losses. Scammers frequently masquerade as trusted influencers, developers, or support staff on platforms like X.
In impersonation scams, fraudsters infiltrate discussions or create fake profiles to exploit users seeking quick profits. They often conduct fake giveaways, promising doubled returns in exchange for minor “verification” deposits. Scammers might also run impersonation accounts mimicking celebrities or send direct messages acting as exchange support to gain wallet access or instigate urgent fund transfers.
Red flags include accounts with slight misspellings (e.g., “@ElonMuusk”), unverified profiles lacking verification badges, and any requests for direct crypto transfers, as legitimate entities never pursue such requests.
In 2024, crypto scams resulted in victims losing $9.9 billion worldwide, with impersonation contributing to a fourfold increase, according to the Federal Trade Commission. In Hong Kong, scammers impersonated Chief Executive John Lee through a fraudulent X account and a deepfake video promoting a supposedly government-backed digital currency.
Did you know? Despite improvements in blockchain security, scams are continually evolving. From 2024-25, scammers transitioned from hacking smart contracts to manipulating human behavior. By 2025-26, their tactics escalated further.
Scam 4: AI-powered deepfake scams
AI-powered deepfake scams have emerged as a significant threat, utilizing advanced technology to deceive users and appropriate assets. Criminals now harness artificial intelligence to create highly realistic videos or voice mimics of prominent executives, influencers, and celebrities.
Trained on publicly accessible content such as interviews, podcasts, and YouTube videos, AI-powered deepfakes are remarkably convincing. They can easily trick even the most cautious users into believing fraudulent claims.
In August 2024, The New York Times referred to a deepfake version of Elon Musk as “the internet’s biggest scammer.” One victim, 82-year-old retiree Steve Beauchamp, was so convinced by the video that he invested his entire retirement savings of $690,000 over several weeks. The funds disappeared without a trace, and many others have fallen for similar scams.
Quantum AI was an allegedly fraudulent online investment scheme that falsely claimed to utilize AI and quantum computing to yield high returns for investors. The scammers reportedly manipulated their website to display misleading trading results and used deepfake videos to promote the scheme.
Deepfakes blur the disparity between authentic and fraudulent communication. They exploit trust, urgency, and FOMO (fear of missing out), presenting a substantial threat.
Did you know? Crypto romance scams surged during the pandemic and persist into 2025. Scammers establish trust on dating apps before introducing fake “investment opportunities,” ultimately leading victims to part with their life savings.
Scam 5: Crypto support
Fake crypto support scams are becoming a mounting threat, ensnaring users with deceptive offers of assistance to obtain money or sensitive information. Fraudsters often pose as customer support agents from reputable exchanges or wallet providers.
Scammers impersonating customer support representatives reach out to victims through social media platforms like X and Telegram or via counterfeit websites that closely resemble official domains. By offering seemingly legitimate help, they exploit user trust.
These scammers often disseminate phishing links masquerading as support portals, promote “wallet recovery” services that request private keys or seed phrases, or offer counterfeit refunds designed to drain accounts. Such tactics target users already facing technical difficulties or seeking immediate solutions.
A notorious crypto support scam emerged after the Coinbase data breach in May 2025, where leaked personal data — including names, addresses, ID images, and bank details — was allegedly misused. Criminals impersonating Coinbase support contacted victims, pressuring them to share security codes, two-factor authentication (2FA) details, or transfer assets to fraudulent wallets.
