8 Types of Crypto Scams to Avoid in 2026
In 2026, crypto markets hit new highs, driven by institutional ETFs, clearer US regulations and global adoption. Although blockchain and cryptocurrency have created many opportunities for people around the world, they have also attracted scammers, leaving the industry vulnerable to fraud.
Have you fallen victim to a cryptocurrency scam? If so, you’re not alone: Chainalysis reports that $12.4 billion was lost in 2025 alone, with 40% of high-value frauds being caused by AI deepfakes. A crucial step towards safeguarding yourself is gaining a comprehensive understanding of the different types of cryptocurrency scam that exist. These range from phishing attempts to elaborate Ponzi schemes, with scammers continually devising new tactics to exploit unsuspecting individuals.
Whether you’re already involved in the crypto space or are considering getting involved, it’s important to be aware of the most common scams in 2026 and how to protect yourself. Our comprehensive guide outlines eight prevalent types of crypto investment scam. Let’s delve into the details.
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Table of Contents
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What is a Crypto Scam?
A cryptocurrency scam is a fraudulent scheme designed to deceive individuals into surrendering their money, personal data, or digital assets using cryptocurrencies. Due to the decentralized and often pseudonymous nature of blockchain technology, these scams can be difficult to trace, making the recovery of stolen funds nearly impossible.
The ever-evolving sophistication of crypto scams can make it challenging to differentiate between legitimate investment opportunities and fraudulent schemes. Scammers frequently lure victims by promising unrealistic returns with little to no risk, exploiting the fear of missing out (FOMO) to entice both novice and experienced investors. Even large corporations and institutional investors have fallen victim to these deceptive tactics, highlighting the need for vigilance in the crypto space.
Why Crypto Scams Are So Prolific?
The rapid growth of the cryptocurrency industry has been accompanied by a surge in scams, driven by both the inherent characteristics of digital assets and broader societal factors. Several key reasons explain why fraudulent schemes remain so prevalent in the crypto space.
1. Anonymity and Limited Regulation
Cryptocurrencies allow for anonymous transactions with relatively little oversight compared to traditional financial systems. This lack of regulation makes it difficult to trace fraudulent activity, giving scammers greater freedom to operate while minimizing their legal risks.
2. Technological Complexity
The technical nature of blockchain and cryptocurrency can be overwhelming for many investors. Scammers often exploit this knowledge gap by promoting misleading investment opportunities that promise low risk and exceptionally high returns, preying on those who lack a deep understanding of the technology.
3. Market Volatility and Unrealistic Expectations
The crypto market’s extreme volatility fuels the perception that overnight wealth is possible. Scammers capitalize on this by offering schemes that guarantee high returns, drawing in victims who are eager to profit from rapid price swings but unaware of the risks.
4. Fear of Missing Out (FOMO)
Stories of early adopters becoming millionaires generate a powerful fear of missing out. Scammers leverage this psychology by presenting their schemes as once-in-a-lifetime opportunities, pressuring individuals to act quickly without conducting proper due diligence.
5. Global Accessibility
Cryptocurrencies are borderless, allowing scammers to reach a worldwide pool of potential victims. This global reach makes enforcement far more difficult, as scams can easily cross jurisdictions and evade the grasp of local authorities.
6. Limited Public Knowledge
Many people entering the crypto market have only a superficial understanding of how digital assets work. This lack of knowledge leaves them vulnerable to deceptive claims, fraudulent projects, and misleading marketing tactics.
7. Rapidly Evolving Technology
The cryptocurrency sector is still relatively young and continuously evolving. The absence of mature regulatory frameworks and comprehensive safeguards creates an environment where scammers can quickly adapt and devise new tactics as the industry develops.
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What Are the Eight Most Common Cryptocurrency Scams?
As we mentioned above, crypto users lost close to $2 billion to scams, rug pulls, and hacks in 2023 and over $1.4 billion in the first half of 2024. Let’s dive deeper into each of the scams, see how they work, and how you can prevent falling victim to them.
Phishing Scams
A phishing scam is a deceptive tactic employed by fraudsters, where they create fake websites, social media profiles, or send phony emails to trick you into divulging your personal information, including your identity, passwords, and cryptocurrency wallet keys. These scams cunningly imitate legitimate cryptocurrency platforms, such as exchanges, to instill trust in unsuspecting victims. The emails or messages you receive may seem credible, often containing enticing offers or urgent requests for your sensitive information, such as your private key or login credentials.
Once you have unwittingly disclosed this information to the scammers, they can then exploit it to steal your digital assets. This might involve accessing and emptying your cryptocurrency accounts on genuine platforms using the details you provided. Therefore, it’s crucial to be wary of any unsolicited communication asking for your personal or financial information, especially if it promises too-good-to-be-true deals or creates a sense of urgency.
Romance Scams
Once the scammer has cultivated your trust, they’ll introduce the idea of investing in a cryptocurrency scheme or request a direct cryptocurrency transfer. However, instead of using the funds for the promised investment, the money is promptly diverted into their own pockets. The financial losses incurred through these scams can be staggering, reaching astronomical amounts. According to AARP, in November 2023, the U.S. Justice Department and Secret Service retrieved $9 million worth of Tether from scammers who had targeted more than 70 victims. A large portion had been targeted through romance schemes.
Impersonation and Giveaway Scams
Social Media Scams: Scammers establish phony profiles, pages, or groups on platforms like Facebook and Instagram. They’ll then use those pages to promote fraudulent investment schemes or phishing links – in 2024, fake social media scams, sometimes called deepfakes, surpassed $25b. Scammers managed to achieve this by posting fake testimonials, success stories, and screenshots of large profits to lure victims. The links on these posts will direct users to a site that captures login credentials or private keys.
Crypto Investment Scams
Scammers sometimes design enticing crypto investment schemes that promise high returns with little to no risk. They often involve elaborate ways to convince you that their investment is safe and profitable. The most common types include Ponzi schemes, pump-and-dump schemes, and fraudulent ICOs and NFTs.
Here’s how they work:.
Blackmail and Extortion Schemes
The modus operandi of these schemes mirrors that of traditional monetary scams, albeit with cryptocurrency as the medium of exchange. Crypto scammers employ blackmail or extortion tactics, leveraging their possession of sensitive information like personal photos, videos, or financial records to coerce victims into making cryptocurrency payments. The victims acquiesce due to the fear of the consequences should this sensitive data be disclosed, often under the threat of a looming deadline. Thus, the scammers succeed in extracting payments in cryptocurrency from their intimidated victims.
Cloud Mining Schemes
Victims of these scams fall prey to deceitful tactics employed by fake companies posing as crypto mining contractors. These contracts entice with promises of profits derived from cryptocurrency mining without requiring ownership of costly equipment. However, the truth is that these companies are mere fronts set up by scammers who neither possess mining equipment nor the financial means to fulfill their promised returns to investors. In some instances, these mining scams initially function as Ponzi schemes, where initial investors are paid using funds sourced from newer investors, further perpetuating the fraudulent cycle.
Fake Cryptocurrency Exchanges and Wallets
To pilfer funds, scammers devise fake cryptocurrency exchanges and wallets that mimic legitimate platforms, rendering them nearly indistinguishable to the unsuspecting eye. These counterfeit sites entice victims with alluring offers, including reduced fees, enhanced security, and exclusive functionalities. However, once victims create accounts and deposit their funds, the scammers swiftly abscond with the stolen money, leaving the victims empty-handed.
In May 2024, two men in the UK stole almost £6 million worth of cryptocurrency from victims. They replicated the website of Blockchain.com so they could access victims’ online wallets.
SIM-Swap Scams
These crypto fraud tactics are exceptionally sophisticated, leveraging victims’ mobile numbers as a gateway to their online accounts, including crypto wallets. Scammers exploit this information to intercept verification codes and even reset passwords, thereby gaining direct access to digital assets. They can acquire mobile numbers through various means, such as social media profiles, data breaches, or phishing emails.
How to Avoid Crypto Scams Early?
Spotting a crypto scam early is a great way of protecting yourself against falling foul of a fraudulent scheme. You can do so by:
- Analyzing the investment’s whitepaper
- Looking for red flags in communication
- Spotting unrealistic promises
The best ways to protect yourself against being scammed is to:
- Check third-party reviews
- Ignore unsolicited messages
- Verify any endorsements or partnerships
- Move slowly before investing
- Bookmark important links
How to Report Crypto Scams?
It is essential to equip yourself with the knowledge to identify potential scams in order to safeguard your financial well-being. However, it is also equally important to understand how to report such incidents, as this plays a crucial role in combating financial crime. By following the steps below, you can help protect others from falling victim to similar frauds.
Steps to Report Crypto Scams:
- Contact the platform where the scam occurred—this may include social media platforms or cryptocurrency exchanges.
- Reach out to the relevant authorities, such as your local consumer protection agency or equivalent regulatory body.
- Notify the cryptocurrency exchange or wallet provider involved in the fraudulent activity.
- File a formal complaint with the Internet Crime Complaint Center (IC3) or other appropriate cybercrime reporting organizations.
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Where & How to Buy Crypto Safely?
If you want to buy cryptocurrencies safely, you can easily start by creating an account with BTCC, one of the longest-running exchange in the world. BTCC is a trusted and well-respected exchange around the world thanks to its unwavering commitment to security and transparency. Since its establishment in 2011, BTCC has boasted an impeccable security track record, with zero reported hacks or breaches. Holding licenses in the U.S., Canada, and Europe, BTCC provides a comprehensive suite of trading features within a secure and regulated platform.
With a mission of providing a trading platform that is fair and reliable in every sense, BTCC platform supports spot trading for over 360 cryptocurrencies, crypto futures trading with leverage up to 500x, crypto copy trading that allows users to follow experienced traders, demo trading accounts pre-loaded with $100,000 in virtual funds, and tokenized futures for stocks and commodities. If you want to engage in cryptocurrency trading, you can start by signing up for BTCC.
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How to Trade Crypto Futures on BTCC?
BTCC supports trading for USDT- M Perpetual Futures contracts with a leverage of up to 500×, you can trade over 300 cryptocurrencies on BTCC at the most competitive price and highest security.
The following sets forth the step-by-step guidance for crypto futures trading on cryptocurrency exchange BTCC:
Step 1: Create a BTCC account
Step 2: Complete BTCC’s identity verification
Step 3: Fund your BTCC account
On the BTCC official homepage, choose “Deposite”, and then fund your account with your preferred method
Step 4: Place your crypto futures order on BTCC
Go back to the BTCC official homepage, choose “Futures” -“USDT-M Perpetual Futures Contract”, and find the crypto trading pair that you want to trade.
Then, choose the contract trading order type. Futures contract orders on BTCC platform include market orders, limit orders and SL/TP orders.
- Market Order: users place orders at the best price in the current market to achieve fast trading.
- Limit Order: Limit orders are a type of order to buy or sell futures at a price more favourable than the market price. When you buy at a price lower than the market price or sell at a price higher than the market price, the order will be in the form of a limit order.
- SL/TP Order: SL/TP orders are a type of order to buy or sell futures at a price less favourable than the market price. When you buy at a price higher than the market price or sell at a price lower than the market price, the order will be in the form of a SL/TP order.
Next, adjust the leverage multiple.
Please keep in mind that operating leverage carries the risk of liquidation. Leverage should be adjusted based on your financial status and risk tolerance.
Then, choose the lot size and set the SL/TP price. After setting the basic data information, users can choose to buy (open long) or sell (open short) after entering their ideal price. Traders should remind that the price cannot be higher or lower than the highest buying price or lowest selling price of the platform.
Finally, click the buy or sell button, and the crypto futures contract order is completed.
Conclusion
As the cryptocurrency market expands, scams are becoming increasingly sophisticated, making it crucial for investors to stay informed and cautious. While bull markets bring exciting opportunities, they also attract a surge in fraudulent schemes designed to exploit unsuspecting individuals.
To navigate the crypto space safely, investors must educate themselves on common scams, conduct thorough research before investing, and implement strong security measures. Exercising skepticism—especially when faced with promises of guaranteed profits or risk-free returns—can help safeguard assets and prevent costly mistakes. By remaining vigilant and prioritizing due diligence, individuals can make smarter investment decisions and minimize their exposure to fraudulent activities.
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FAQs
How many scams are there in crypto?
There’s no exact number of crypto scams because the space is constantly evolving and the definition of a scam can vary widely.
What are the most common crypto scams at the moment?
These involve sophisticated impersonation, fake job offers ('pig butchering' and 'task scams'), AI-driven investment promises, phishing via fake websites and apps, 'rug pulls', and deepfakes. They all use social engineering to trick victims into sending cryptocurrency, often under the guise of offering high returns or making urgent demands on behalf of fake officials. They also use malware, such as clipboard hijackers, to steal funds.
What are the red flags of a scammer?
These include intense pressure to act immediately, requests for unusual payments such as gift cards, wire transfers or cryptocurrency, promises that sound too good to be true, demands for upfront fees for prizes or jobs, requests for personal or financial details and communication with poor grammar or spelling. All of these are designed to create fear, urgency, or secrecy in order to cloud judgement. Legitimate organizations will not demand immediate, secret payments via these methods.
What should you do after getting scammed?
Without a doubt, you should report the scam to the relevant authorities and platforms as soon as possible. Before trying to trace and recover your funds using blockchain analysis tools, you should also seek legal advice.
Please be aware that all investments involve risk, including the potential loss of part or all of your invested capital. Past performance is not indicative of future results. You should ensure that you fully understand the risks involved and consider seeking independent professional advice suited to your individual circumstances before making any decision.
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