Crypto Scams: How to Protect Your Cryptos?
With the rise of crypto scams, and while international efforts are still working to combat these threats and protect investors, some recent tactics have been identified, and here is your full guide.
Which topics should we dive deeper into?
Select what genuinely interests you. Your picks feed directly into our editorial planning.
Crypto news that's actually worth your time.
Weekly. 60 seconds. Carefully curated by our editors: no hype, no promo flood, no spam.
As cryptocurrency adoption grows, so do the scams associated with it. From job seekers being tricked into money mule schemes to massive heists and sophisticated phishing attacks, the landscape of crypto crime is ever-evolving. Understanding these threats is crucial for both novice and seasoned investors.
Crypto Money Mule Scams: Job Seekers Beware
The Commodity Futures Trading Commission (CFTC) has issued a warning to young people, students, and job seekers about becoming unwitting money mules in crypto scams. These scams often disguise themselves as legitimate job offers, luring victims into transferring illicit funds using their personal crypto wallets.
- How Scammers Operate?
Criminal organizations exploit job seekers by posing as employers needing payment processors or secret shoppers. Victims unknowingly help launder money, often ending up facing criminal charges despite their lack of intent to commit a crime. The CFTC highlights that scammers use sophisticated techniques to move funds, making the illicit activities appear legitimate.
The Rise of Crypto Theft: Wallet Impersonation and Poisoning
According to Chainalysis, crypto scammers stole approximately $24 million through impersonation and tax authority scams in 2023, with nearly $17 million stolen in the first four months of 2024. One notable incident involved a $71 million wallet impersonation scam where a victim transferred a significant amount of Wrapped Bitcoin (WBTC) to a scammer’s wallet.
- The Mechanics of Wallet Poisoning
In the wallet poisoning scam, the fraudster creates a wallet address that looks similar to the victim's legitimate one. The victim, failing to notice the subtle differences, transfers their funds, which the scammer then swiftly converts into Ethereum (ETH) and disperses across multiple wallets to obfuscate the trail.
International Efforts to Combat Crypto Fraud
Eurojust, the European Union Agency for Criminal Justice Cooperation, recently led a multi-country operation to dismantle a major crypto fraud scheme in Austria. This operation, which involved Europol and national law enforcement from Cyprus, the Czech Republic, and Austria, resulted in the arrest of six suspects and the seizure of substantial assets.
- The Fall of an Exit Scam
The busted scheme operated between December 2017 and February 2018, luring victims into investing in a fake cryptocurrency. The scammers disappeared after collecting funds, prompting a thorough investigation that eventually led to their capture.
2024 Scams Overview
- May Crypto Scam Update: $71 million returned
Blockchain security firms like PeckShield and SlowMist have been instrumental in tracking and sometimes recovering stolen funds. For instance, after a detailed investigation by SlowMist, a scammer returned $71 million worth of stolen Ether to the victim, likely due to the fear of exposure and legal consequences.
- Decrease in Crypto-Related Theft
Despite these high-profile cases, April 2024 saw the lowest combined losses from crypto-related hacks and scams since 2021, with around $25.7 million lost. This reduction indicates an increased effectiveness of security measures and awareness among investors.
The dynamic nature of cryptocurrency scams necessitates continuous vigilance and education. Both new and experienced crypto users must stay informed about the latest scam tactics to protect their investments and avoid becoming unwitting participants in illegal activities.
Related articles
Which topics should we dive deeper into?
Select what genuinely interests you. Your picks feed directly into our editorial planning.
Crypto news that's actually worth your time.
Weekly. 60 seconds. Carefully curated by our editors: no hype, no promo flood, no spam.
December 22, 2020 3:49 PM
Crypto Wallet Provider Ledger Hacked: Data Leak Results in Phishing Scams
Ledger, a cryptocurrency wallet provider has encountered a data breach. The official Twitter account of the hardware wallet tweeted that they have been alerted to the dump of a client database.
August 22, 2026 4:16 PM
Stolen Crypto: Where You Actually File a Report and What Counts in the First Hours
After a theft most people google first and preserve the evidence last, when the right order is the other way round. What you have to record in the first hours, where private individuals actually turn, and where the limit of what is possible lies.
April 24, 2023 6:54 AM
3 Types of Scammers in the Crypto World
The recent rise of cryptocurrencies brought about a new threat – scammers. Here are 3 types of scammers in the Wild, Wild West of cryptos.
October 17, 2021 3:57 PM
Top 5 Metamask Alternatives
The cryptocurrency world is full of innovations and exciting things. One such innovation is Metamask. But this post is all about the top 5 Metamask alternatives.
October 13, 2018 10:22 PM
Duo Security Discloses Crypto Scam Botnet On Twitter
Duo Security, an Austin based cybersecurity company has disclosed a huge and sophisticated botnet crypto fraud scam On Twitter.
August 22, 2018 12:54 PM
FTC Warns About Bitcoin Blackmail Scam
FTC, the Federal Trade Commission, an agency of the US government has warned cryptocurrency investors and enthusiasts about bitcoin blackmail scam.
May 4, 2019 5:44 PM
Microsoft Hackers Stole Crypto Using Victims Emails
Another batch of crypto users have lost money recently through an unlikely breach. Recently, Microsoft services such as Hotmail, MSN, and Outlook have been hit by a breach. It was later learned that the breach was due to an employee’s […]
October 12, 2018 1:57 AM
Belgium Warns of 19 Probable Fraudulent Cryptocurrency Exchanges
Lately, numerous cryptocurrency exchanging platforms have showed up on the web. They all claim to offer the best (or truly outstanding) exchanging platform(s), empowering the novices and experts to exchange digital currencies in a matter of seconds and with full […]
January 27, 2022 11:03 AM
How to Avoid Crypto Scams? Don’t be a Victim of Squid Tokens in 2022
In this article, we will be looking at the new SQUID token and how traders can avoid rug pulls while investing in digital assets.
March 12, 2020 1:12 PM
What Is A Cold Wallet? And Why Is It Important?
A cold wallet is a wallet which is completely offline and used for storing cryptocurrencies. It is also known as cold storage.
September 21, 2018 11:59 AM
Japanese Cryptocurrency Exchange Hacked, $60 Million Loss Reported
Japanese cryptocurrency exchange Zaif has been hacked, with an estimated loss of about $60 million worth of Bitcoin and two other digital currencies.
October 12, 2018 2:48 PM
Savedroid website hacked or exit scam?
It’s panic in the crypto world as users scramble to figure out whether the recent downtime of Savedroid means that the site was hacked or the admins have performed an exit scam.
August 23, 2026 1:16 PM
Address Poisoning: Why Seven of Forty Characters Were Enough to Divert $2 Million
A fake wallet address matched the real one in just seven of forty characters and still intercepted 2 million USDC. Our own count of the affected wallet shows that a third of all counterparties in its history belong to such look-alikes.
February 2, 2024 1:30 PM
Binance Froze $4.2 million in XRP following a breach of Ripple co-founder’s wallet
Discover how Binance acted swiftly to secure $4.2M in XRP after a significant hacking incident targeting Ripple co-founder's personal wallet.
February 1, 2024 1:42 PM
Was Ripple HACKED? Hacker stole $112 million worth of XRP…
Ripple Hack: A breach targeted Larsen's personal XRP accounts, leading to a substantial theft of funds. Was Ripple hacked as a company?
October 20, 2023 9:53 PM
How to Keep Crypto Safe
Ensuring the safety of your cryptos is paramount. We will guide you through the steps to secure your digital wealth and to keep crypto safe.
November 2, 2021 11:14 AM
Comparison Between Ledger And Trezor Wallet
A crypto wallet works just like your physical wallet, but is also virtual. In this article, we will be looking at the Ledger and Trezor Crypto Wallets.
December 21, 2019 10:53 AM
Upbit Cryptocurrency Exchange Hack – The Story So Far
In one of the biggest heists in the cryptocurrency arena, the Korean exchange Upbit was compromised on 27-Nov-2019 during which a rogue entity managed to transfer 342,000 ETH (estimated to be worth approximately 52 million US dollars or 58 billion […]
December 28, 2018 3:02 PM
How To Use a Trezor Wallet?
Trezor is a hardware wallet which gives exceptional security for managing Bitcoin and other cryptocurrencies private keys.It incorporates and deposits personal keys securely and enables users to carry trade without an Internet link. Trezor grants its users with numerous benefits, […]
December 18, 2023 10:05 AM
Exciting Airdrops for Solana Saga Phone Users
Solana Saga phone: Top airdrops for crypto fans, easy blockchain use, secure transactions, perfect for dApp users. Get yours now!
May 17, 2023 7:40 PM
WARNING: Ledger can read Private keys – New Controversial Feature?
Ledger alternatives: Let's explores the details of the new private key extraction feature, and the reasons behind the concerns it has generated.
April 8, 2022 10:30 AM
Forgot Your Bitcoin Password? How to Recover Your Crypto, and When It Is Lost for Good
Bitcoin has no password reset. Whoever loses the private key or the recovery phrase cannot restore access. What you can still try, and how to keep your coins safe.
November 16, 2021 9:39 AM
How to Buy Ethereum on KuCoin? Step by Step Guide
KuCoin is an emerging exchange known for its simple UI and high-end security. Let's show you a step-by-step guide how to buy Ethereum on KuCoin.
October 30, 2018 7:13 AM
Oyster Pearl (PRL) Founder Perpetrates An Exit Scam
Oyster Pearl (PRL) founder has perpetrated an exit scam after printing millions of PRL tokens and trading them instantly on Kucoin.
January 22, 2025 11:31 AM
How to Identify Fake TRUMP tokens: A Guide to Staying Safe in the Crypto World
The rise of fake TRUMP and MELANIA tokens is alarming crypto enthusiasts. Learn how to distinguish the official tokens from scams and protect your investments with this essential guide.
More from CryptoTicker