Beware the Traps. Bitcoin Scams You Should Know About.
Cryptocurrency continues to offer new opportunities, but it also gives scammers a powerful playground. As fraudsters grow more sophisticated, understanding how scams operate is critical. Here’s a breakdown of some of the most common Bitcoin/crypto scams happening now and tips to avoid becoming a victim.
Common Bitcoin & Crypto Scams
1. Romance + Investment Scams
This has become one of the most notorious scams in the crypto world. Scammers build a relationship over time, often through dating apps or social media, gain your trust, then gradually push you to invest in fake crypto opportunities. Once you send funds, the platform or contact goes dark.
Red flags and warning signs:
Someone you just met online is urging you to invest.
Promises of huge, low-risk returns.
Pressure to move fast and not “miss the opportunity.”
When you try to withdraw, you face delays, “system errors,” or demands for more investment.
2. Rug Pulls & Honeypot Tokens
Especially common in new DeFi token launches, which is the process of releasing a new cryptocurrency on a decentralized exchange. These scams lure in investors with promises of new tokens, only for the creators to drain liquidity or make tokens non-sellable.
In a rug pull, the developers remove liquidity and vanish.
In a honeypot, the token contract is coded so you can buy, but not sell.
These scams often leverage hype, social media buzz, or influencer endorsements.
3. Phishing & Fake Wallet and Exchange Apps
Scammers create fake websites, mobile apps, or browser extensions that look identical to legitimate crypto services. When you enter your private key, seed phrase, or credentials, they steal your funds.
Some also inject malicious code or backdoors.
“Address poisoning” is another tactic: it replaces a copied wallet address with a scammer’s address via clipboard replacement.
4. Deepfake & AI-Driven Scams
With advances in AI, scammers now use voice cloning, fake video calls, or deepfake impersonation to trick victims. They may pretend to be CEOs, crypto exchange staff, or trusted friends. Fake videos or voice messages urging you to transfer funds or reveal keys. The evolving threat landscape cites AI deepfakes as a growing danger.
5. Giveaway Scams / Fake Giveaways
These are often promoted via social media or livestreams: “Send 0.1 BTC, get 1 BTC back.” It sounds too good to be true because it is. In a study of crypto giveaway scams, scammers netted millions from just a few thousand victims.
6. Exchange Hacks & Insider Threats
Even large, reputable exchanges or crypto services have been breached. Stolen user funds or customer information can lead to further scams (e.g., targeted phishing). For example, some exchanges have been attacked, resulting in large crypto thefts.
7. Crypto ATM or Payment Scams
Scammers pose as tech support, law enforcement, or company representatives and tell victims their account is compromised. To “fix” it, they demand payment via a Bitcoin ATM or crypto transfer. Because crypto payments are irreversible, victims lose the money. In Michigan, such scams have skyrocketed, targeting older adults.
8. Violent, Coercive Theft
There have even been real cases of kidnapping or physical coercion to force victims to reveal their crypto wallets or passwords. One case in New York involved a suspected kidnapping to extract a Bitcoin wallet password.
How to Protect Yourself
Here are practical tips to reduce your risk:
Use hardware wallets or cold storage - Keep private keys offline and never share them.
Double-check URLs and app legitimacy - Use bookmarks or official sources, don’t click links you find randomly.
Enable 2FA (two-factor authentication) - Prefer hardware keys or authenticators over SMS.
Be skeptical of “too good to be true” returns - High, guaranteed returns are almost always scams.
Verify identity via multiple channels - If someone claims to work at an exchange, call official support and verify.
Don’t rush decisions - Scammers often pressure victims to act quickly.
Don’t share private keys or seed phrases - No legitimate service will ask for these.
Keep software updated - Wallets, browsers, and devices should have the latest security patches.
Report & block suspicious actors - Notify platforms, regulators, or law enforcement.
When You Think You’ve Been Scammed
Cut off contact immediately.
Document all correspondence, transaction hashes, and screenshots.
Report to local law enforcement and relevant regulatory bodies.
Reach out to the platforms used (exchanges, social media) and request assistance or flag accounts.
Share your experience (if comfortable), awareness helps others avoid similar traps.
Bitcoin and crypto present groundbreaking potential, but with that comes risk. Scammers are evolving fast, using AI, social engineering, and emotional manipulation to prey on trust. The best defense is knowledge, skepticism, and vigilance.