12 Different Crypto Scams – And How to Spot the Warning Signs
June 3, 2025
Did You Know There Are at Least 12 Types of Crypto Scam?
As cryptocurrency becomes more mainstream, so have crypto scams and the methods used by scammers to exploit it.
You may have heard of rug pulls or pig butchering, but these are just the tip of the iceberg.
In fact, there are at least 12 different types of crypto scams, each with its own tactics, risks, and red flags.
Whether you’re new to crypto or already investing, understanding these scams could help protect your funds or help you identify when you’ve been misled.
Let’s take a closer look.
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Ponzi and Pyramid Schemes
How it works:
These scams promise high returns, often claiming guaranteed profits. Early investors are paid with money from new ones, but once the recruitment dries up, the entire scheme collapses.
Warning signs:
- “Too good to be true” returns
- Pressure to recruit others
- Difficulty withdrawing your funds
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Fake ICOs (Initial Coin Offerings)
How it works:
Fraudsters create a fake cryptocurrency or project, launch a slick marketing campaign, collect money from investors – then disappear.
Warning signs:
- Poorly written or vague whitepapers
- Aggressive social media hype
- No real team or product information
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Rug Pulls
How it works:
Developers hype a token or DeFi project, only to suddenly drain liquidity and abandon the project – leaving investors with worthless assets.
Warning signs:
- Anonymous developers
- No clear roadmap or business plan
- Token trading only on obscure platforms
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Phishing and Social Engineering
How it works:
Scammers pose as legitimate crypto platforms, sending fake emails or links to steal your private keys or login credentials.
Warning signs:
- Unsolicited DMs or emails
- Links that look “off”
- Requests for sensitive information
-
Romance Scams (aka Pig Butchering)
How it works:
Scammers build fake online relationships, then encourage victims to invest in fake crypto platforms – often using social manipulation over weeks or months.
Pig Butchering scams are a type of investment fraud which include elements of romance/friendship scams.
Warning signs:
- Relationships progressing too quickly
- Reluctance to meet or video chat
- Pressure to invest or “get rich together”
-
Fake Celebrity Endorsements
How it works:
Scammers use deepfakes or fake screenshots to suggest celebrities are backing a crypto project or giveaway.
Warning signs:
- “Elon Musk” offering to double your crypto
- Poor grammar or fake-looking websites
- No official statements or verifiable sources
-
Blackmail and Extortion
How it works:
Scammers claim to have compromising information and demand crypto to keep it private.
Warning signs:
- Threatening emails with vague details
- Demands for crypto payments
- Emotional manipulation and urgency
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Pump and Dump Schemes
How it works:
Fraudsters coordinate to artificially inflate the price of a low-volume cryptocurrency through hype, misinformation, or coordinated buying (the “pump”). Once the price peaks, they sell off their holdings (the “dump”), causing the price to crash and leaving other investors with worthless tokens.
Warning signs:
- Sudden, unexplained price spikes in obscure tokens
- Aggressive promotion on social media or messaging groups
- Promises of “guaranteed” quick profits if you buy now
-
Cryptojacking
How it works:
Malware secretly hijacks your device to mine crypto in the background, draining performance and resources.
Warning signs:
- Slow computer or overheating
- High CPU usage when idle
- Strange browser extensions or apps
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Flash Loan Attacks
How it works:
Exploits in decentralised finance (DeFi) platforms allow scammers to manipulate market prices via fast, uncollateralised crypto loans.
Warning signs:
- Sudden price crashes
- Unusual spikes in trading volume
- Reports of exploits on social media
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Zero-Transfer Phishing
How it works:
Scammers exploit blockchain features to send zero-value transactions from your wallet to a lookalike address. They then trick you into copying the wrong address from your transaction history, so future transfers go to the scammer instead.
Warning signs:
- Zero-value transactions appearing in your wallet history
- Addresses in your transaction history that closely resemble your own
- Requests to copy/paste wallet addresses from previous transactions
-
Crypto Giveaway Scams
How it works:
Scammers claim that if you send crypto, they’ll send back double, but you never see your money again.
Warning signs:
- “Send 0.1 BTC and get 0.2 BTC back”
- Fake countdown timers
- Too-good-to-be-true promises
If You’ve Been Targeted by a Crypto Scam, What Can You Do?
If you suspect you’ve fallen victim to a crypto scam, take these steps immediately:
Secure Your Accounts: Change passwords and enable two-factor authentication (2FA) on all crypto and email accounts.
Document Everything: Save all communications, transaction IDs, emails, screenshots, and any details about the scam.
Report the Scam: Notify your bank or payment provider as well as the trading platform (providing that’s not the reason you’ve been scammed!) Also, In the UK report to Action Fraud.
If you’ve lost money in a crypto scam
If you’ve lost money in a crypto scam – particularly if a UK bank or payment provider was involved in the transaction – there may still be a way to recover your losses.
This is because new UK banking rules require banks and payment providers to reimburse victims of Authorised Push Payment (APP) fraud, meaning you may be entitled to a refund if your loss involved a UK bank transfer, depending on your individual circumstances.
Whether the scam involved social engineering, investment fraud or an authorised push payment (APP), it’s worth understanding your options.
Free, Regulated Support to Help You Understand Your Rights
At Compensation Adviser, we help people who’ve lost money to scams understand whether they may have grounds to recover their losses. We offer a free, no-obligation initial assessment with clear, FCA-authorised claims guidance.
You don’t need to use a claims management company to make a claim.
You can complain to your bank or the firm directly for free. If unresolved, you can escalate it to the Financial Ombudsman Service at no cost.
If you do choose to use us, our fees will apply and we’ll explain them upfront.
Compensation Adviser is a trading name of Pension Claim Consulting Ltd – a claims management company authorised and regulated by the Financial Conduct Authority (FRN: 829766).
There is no obligation to use a claims management company. You can complain to your bank or payment provider directly for free. If unresolved, you can escalate your complaint to the Financial Ombudsman Service.