Level 4: Risk & Safety
Common Crypto Scams
Learn to identify and avoid the most prevalent fraud schemes.
8 min read
Golden Rule
No legitimate person or company will EVER ask you to:
- Send crypto to receive more back
- Share your seed phrase or private key
- Give remote access to your computer
- Invest immediately before an "opportunity" closes
Major Scam Types
Fake Giveaways
Typical loss: $100 - $50,000+How it works:
Scammers impersonate celebrities or companies, claiming "Send 1 ETH, receive 2 ETH back!"
Red Flags:
- Any "send to receive more" offer
- Impersonation of Elon Musk, Vitalik, etc.
- Urgency and limited time offers
Romance Scams (Pig Butchering)
Typical loss: $10,000 - $500,000+How it works:
Build fake relationship over weeks/months, then convince victim to "invest" on fake platforms.
Red Flags:
- Met online, claims to be overseas
- Eventually introduces "investment opportunity"
- Platform shows fake profits you can't withdraw
Pump and Dump
Typical loss: $500 - $100,000+How it works:
Coordinated buying inflates price, then insiders sell while promoting to newcomers.
Red Flags:
- Sudden social media hype for unknown coin
- Claims of "100x guaranteed"
- Pressure to buy immediately
Fake Support Scams
Typical loss: Complete wallet drainHow it works:
Impersonate exchange/wallet support, ask for seed phrase or remote access to "fix" issues.
Red Flags:
- Support contacts you first
- Asks for seed phrase or private key
- Requests remote desktop access
Ponzi/Pyramid Schemes
Typical loss: $1,000 - $1,000,000+How it works:
Promise high fixed returns, pay early investors with new investor funds until collapse.
Red Flags:
- Guaranteed returns (10%+ monthly)
- Referral bonuses for recruiting
- Vague about actual investment strategy
Scam Detection Checklist
Does it promise guaranteed returns? (Always a red flag)
Is there pressure to act immediately?
Did someone contact you first about an "opportunity"?
Are you being asked for seed phrase or private keys?
Is the website URL slightly misspelled?
Can you independently verify the person/company exists?
Does the opportunity require recruiting others?
Are withdrawal requests being delayed or denied?
If You\'ve Been Scammed
- Stop all communication with the scammer immediately
- Do NOT send more money trying to "recover" losses
- Report to local authorities and relevant regulatory bodies
- Warn others in community forums
- Document everything for potential legal action
- Be aware of "recovery scams" targeting victims