These 24 Crypto Scams Are Accelerating the Theft of Your Assets

As cryptocurrency gains popularity, scams evolve quickly with tactics becoming increasingly sophisticated, leaving even regulators struggling to keep pace. To raise investor awareness, Californias Department of Financial Protection and Innovation (DFPI) has identified 24 prevalent and dangerous crypto scams.

Fake Investment Opportunities

Advance Fee Scams

Scammers persuade victims to pay fees or deposits upfront for promised returns, then disappear with the money.

AI Investment Fraud

These scams falsely promise high returns through fake AI-driven platforms, with no real investment backing.

Fake Bitcoin Mining Scams

Scammers falsely promise lucrative Bitcoin mining opportunities, yet investor funds go straight to fraudsters.

Asset Recovery Scams

Fraudsters promise to help recover lost investments for a fee but never follow through.

Bait and Switch Scams

Victims are misled by advertisements promising one investment product but receive another of lesser value or no value at all.

Emotional and Social Relationship Scams: Exploiting Trust to Defraud

Pig Butchering Scams

Fraudsters build emotional connections over time before introducing fake investments to swindle significant sums.

Crypto Giveaway/Airdrop Scams

Impersonating celebrities or famous brands, scammers trick victims with fake crypto giveaways or airdrops.

Romance or Social Media Scams

Fraudsters create fake romantic relationships online to persuade victims to invest in fake crypto opportunities.

Affinity Scams

These scams exploit trust within specific communities, such as religious or cultural groups, to promote fake investments.

Identity Theft and Cyber Extortion: Threats and Fraud Combined

Crypto Blackmail Scams

Hackers steal personal information and threaten public exposure unless victims pay ransoms in crypto.

Identity Theft Scams

Criminals use stolen personal data to open fraudulent accounts and commit financial fraud.

Imposter (Phishing) Scams

Criminals posing as authorities or reputable businesses trick victims into providing sensitive personal and financial information.

Ransomware Attacks

Scammers encrypt victims data and demand crypto payments in exchange for restoring access.

Fake Trading Platforms and Social Scams: Traps Disguised as Legitimate Opportunities

Fake Trading Platform Scams

Platforms that appear legitimate and secure but are solely designed to defraud investors of their money.

Investment Group Scams

Fraudsters create fake investment groups on social media platforms like Telegram to collectively defraud members.

Signal Selling Scams

Fraudsters sell fake trading signals promising high returns, but only result in investor losses.

High-Yield Investment Programs (HYIP)

Ponzi schemes promising unrealistic returns, ultimately disappearing after attracting enough investor funds.

Crypto Job Scams

Fraudsters impersonate recruiters and offer fake job opportunities to gain access to victims crypto assets.

Cybersecurity Exploitation: Rapidly Draining Crypto Wallets

Crypto Wallet Phishing Attacks

Fraudulent websites trick users into providing wallet recovery phrases or private keys, quickly draining accounts.

Liquidity Mining Fraud

Fake DeFi platforms lure victims with high returns, stealing user funds and disappearing rapidly.

Rug Pull Scams

Developers promote crypto projects, accumulate investments, and suddenly abandon the project, stealing investors funds.

Crypto Gaming Scams

Fake blockchain-based games that attract players funds through false promises of earning crypto rewards.

Hacking Attacks

Cybercriminals exploit vulnerabilities in computer systems to steal cryptocurrencies and sensitive personal information.

Tech Support Scams

Fraudsters pose as tech support, tricking victims into paying for unnecessary or fake security services.

How to Protect Yourself?

Investors should remain vigilant and skeptical of seemingly perfect investment opportunities. Verifying identities and investment platforms is crucial. If suspicious, stop transactions immediately and seek verification through official channels.