Cryptocurrency scams are constantly evolving, and scammers use various tactics to deceive users and steal their assets. Here are some of the most common scams and how to protect yourself against them.
1. Drainers – Malicious Smart Contracts
How Crypto Drainers Operate
Modern crypto drainers automate the process of stealing funds from victims' wallets. First, they analyze a wallet's contents to estimate its total value and pinpoint the most valuable assets. Next, they generate transactions and deploy malicious smart contracts to transfer these assets quickly and efficiently. Finally, they obscure the fraudulent transactions, making them appear vague or misleading, so victims struggle to understand what happened once the transaction is approved.
Scammers equipped with drainers create fake websites that mimic legitimate cryptocurrency projects. They often register similar-looking domain names, exploiting the fact that many crypto projects use popular, easily confused domain extensions.
To lure victims to these fraudulent sites, scammers use various deceptive tactics. Some of the most common include promising airdrops or NFT minting opportunities—both widely recognized reward mechanisms in the crypto space that attackers manipulate to their advantage.
How to Protect Yourself:
- Never approve transactions on unknown or suspicious websites.
- Regularly revoke token approvals using https://ronin.axiedao.org/revoke/
2. Dust Attacks & Honeypot Tokens – Hidden Crypto Threats
🔹 Dust Attacks – A Trick to Steal Your Funds
Scammers send small amounts of cryptocurrency (“dust”) to multiple wallets.
These attacks can be used to:
- Track Your Activity – Attackers analyze transaction patterns to de-anonymize users.
- Bait You Into Scams – Suspicious airdrops may lead to deceptive sites or harmful smart contracts, putting your funds at risk.
🔹 Honeypot Tokens – Trapped Investments
Honeypot tokens allow users to buy but not sell due to hidden contract restrictions.
Scammers manipulate smart contracts so that:
- A new token appears promising, luring investors.
- Buyers realize they can’t sell due to contract limitations.
- Scammers dump their holdings, leaving others with worthless tokens.
How to Protect Yourself:
- Ignore unexpected crypto deposits – Never interact with unknown airdrops or dust transactions.
- Research before investing – Check token liquidity, smart contract code, and developer credibility.
- Avoid interacting with suspicious tokens – Selling or transferring them may lead to phishing sites or malicious approvals.
3. Social Engineering – Manipulating Trust
Social engineering scams exploit human psychology rather than technical vulnerabilities. Scammers impersonate trusted individuals, brands, or services to gain access to your assets.
How It Works:
- Scammers create fake profiles on Discord, Telegram, Twitter, or email.
- They offer too-good-to-be-true deals or pretend to be support agents.
- They trick victims into revealing private keys or signing harmful transactions.
How to Protect Yourself:
- Never share your private keys or recovery phrases with anyone.
- Always verify official support channels.
- Be cautious of unsolicited messages offering help or investment opportunities.
4. Phishing Websites – Fake Exchanges and Wallets
Phishing websites mimic legitimate crypto exchanges, wallets, or dApps to steal private keys and login credentials.
How It Works:
- You receive an email, ad, or message linking to a fake website.
- The website looks identical to a trusted service.
- Entering your details results in instant theft of your funds.
How to Protect Yourself:
- Always verify URLs before logging in or approving transactions.
- Bookmark official sites instead of using search engine results.
- Enable 2FA for exchanges and use hardware wallet if possible.
5. Wallet Trojans – Fake Software Wallets
Scammers distribute fake or modified wallet applications that secretly steal private keys and funds.
How It Works:
- Users download wallets from unofficial sources.
- These wallets secretly transmit private keys to scammers.
- As soon as funds are deposited, they are stolen.
How to Protect Yourself:
- Only download wallets from official sources or verified app stores.
- Check for user reviews and community feedback before installing.
- Avoid downloading wallet software from direct links in emails or messages.
6. Fake Investment Schemes – Too Good to Be True
These scams promise guaranteed high returns in a short time to lure victims into investing funds.
How It Works:
- Scammers promote a “profitable” investment scheme.
- Users deposit funds with the expectation of high returns.
- The scammers disappear with the money, or withdrawals become impossible.
How to Protect Yourself:
- If an investment promises guaranteed high returns, it's likely a scam.
- Verify the legitimacy of platforms through independent research.
- Use trusted financial institutions and investment services.