How to Avoid Common Crypto Scams in 2025

Cryptocurrency is more popular than ever, but scams are also on the rise. Scammers promise free money or cryptocurrency, impersonate businesses or government agencies, and even use social media and dating apps to trick people.

The best way to avoid common crypto scams is to stay informed and practice preventative measures. Here are five ways to spot a crypto scam:

1. Scammers on social media

In recent years, crypto scams have become more sophisticated. The blockchain technology is secure, but humans aren’t- and in the case of cryptocurrency, greed and fear of missing out (FOMO) create ripe conditions for fraud. Combined with a rising interest in crypto and the rise of digital technologies like artificial intelligence, scammers have adapted faster than ever.

For example, in 2024, scammers used deepfakes to impersonate Elon Musk during YouTube videos to promote fake giveaways. Those giveaways collected donations from users, then vanished with the funds.

The first half of this year, more than half of all investment-related fraud reports on social media involved cryptocurrencies. It’s important to remember that most coins and tokens are investments, so always do your research and never invest more than you can afford to lose.

To recognize a legitimate crypto project, look for a whitepaper and roadmap with clear details. It should also have a visible team and verifiable registration information. If a project avoids questions or pushes for rushed decisions, that’s a red flag. Also consider using hardware wallets to store your crypto and keep private keys and recovery phrases safe from theft.

2. Fake apps

When a fake app enters your device and gets permission to access your data, hackers can expose your private keys or make ransom demands. This can result in substantial losses and a compliance violation that puts you at risk of fines.

Scammers may impersonate a well-known company by creating social media ads, news articles or slick websites to promote their fraudulent crypto coin or token. These scams usually involve a high-profile celebrity or businessperson and promise giveaways. A healthy dose of skepticism and due diligence will keep you from falling victim to these schemes.

To protect your wallet, look at an app’s developer information in the Google Marketplace and compare with its official website. If you see small differences, such as extra characters or odd spellings, that should be a red flag. It’s also a good idea to check its reviews and read its description. Legitimate apps will have a clear whitepaper, roadmap and team with real names, profiles and experience. If a project doesn’t provide these details, it’s probably a scam.

3. Free giveaways

Cryptocurrency is revolutionizing the financial landscape, but it also offers a new avenue for fraudsters. Last year alone, scammers stole $14 billion from cryptocurrency investors. From phishing scams to fake apps, the crypto space is full of risks that can be difficult for even experienced investors to spot. With that in mind, this guide will demystify common crypto scams and share security best practices to help readers avoid them.

Scams targeting cryptocurrency investments are more common than ever. From phishing attacks to bogus ICOs, these scams are designed to steal your crypto or information. Here are some of the most common ways scammers try to fool you: 1. Free giveaways.

4. Scammers posing as investment managers

Crypto scams can be incredibly damaging, especially since it is so difficult to recover lost crypto. They can also be particularly dangerous for investors, as many of them involve stealing private keys or recovery phrases that allow users to access their wallets and exchange accounts.

Scammers often promote investments in cryptocurrencies using tactics familiar from other types of fraud, including pump and dump investment scams. This type of scam works by artificially inflating the price of a low-value asset, such as a token. Once the price rises, the criminal will sell off their holdings and crash the value, leaving investors with worthless tokens.

Another common crypto scam involves a boiler room that cold calls potential investors and tries to solicit funds for a crypto project. This kind of scam is particularly dangerous because it targets members of tight-knit communities, such as religious or ethnic groups. In these schemes, scammers use fake profiles to impersonate registered investment professionals or even fake firm websites to convince potential victims that they can make them rich. If you receive a call or message from someone asking for money, crypto, or personal information, always take the time to check online before responding.

5. Scammers impersonating well-known companies

As interest in crypto surges, fraudsters are ramping up their attacks with more sophisticated playbooks. Generative AI is a powerful tool in their arsenal, allowing them to create more realistic fake emails, dashboards, and chats to steal user credentials and drain crypto funds. This trend is expected to continue as more people enter the crypto space and the number of scammers increases.

It’s also easier than ever for scammers to impersonate businesses and other trusted organizations. They can send a text, email, or DM and claim to be your bank, the IRS, or even tech support to trick you into sending cryptocurrency to them.

The good news is that there are steps you can take to protect yourself from these types of scams. Always ask questions, check your wallet balance, and only use verified exchanges. And don’t click on random links or download apps that come from unknown sources—they could be malware. These smart practices will help you avoid common crypto scams in 2026 and beyond. Providing actionable advice for beginners and experienced investors alike.