Top 10 Crypto Scams to Watch Out For in 2025

While the blockchain technology used in cryptocurrencies is generally thought to be highly secure, crypto scams do occur, with fraudsters convincing people to send them crypto payments, transact in fake crypto products, or share their digital wallet details. According to the FBI’s Internet Crime Complaint Center (IC3) 2024 Internet Crime Report, cryptocurrency-related scams accounted for $9.3 billion in victim losses, which represents a steep 66% increase from the previous year.^[1] As scammers get more sophisticated (integrating AI, for instance), it can be more challenging to recognize crypto fraud.

An important step to take is to educate yourself about and then avoid the scams you might encounter in 2025 if you buy, hold, or sell crypto. Read on for advice.

What Are Crypto Scams?

Crypto scams are schemes in which fraudsters trick people into sending cryptocurrency for fake purposes, buying fraudulent crypto products, or revealing their crypto wallet credentials so that funds can be stolen.

Unfortunately, there has been a major uptick in these crimes over the past year. Scammers are becoming more sophisticated, using AI and other tools to appear legitimate. They also often use the same principles deployed in non-crypto financial scams, such as:

•   Slowly building trust, over weeks or even months

•   Creating a sense of urgency, such as, “This opportunity expires in one hour”

•   Exploiting knowledge gaps (such as telling people there’s a serious error with their technology which they can fix)

These scams take many guises. Some involve phishing, in which fraudsters masquerade as legitimate, trusted businesses, to steal crypto. Others are romance ploys, where someone cultivates a relationship with someone only to convince them to transact in a bogus type of cryptocurrency.

The Most Common Types of Crypto Scams in 2025

To help you stay vigilant against evolving cryptocurrency fraud, here are 10 common scams to know about for 2025 and beyond. Learning how these schemes operate is the first step toward avoiding them.

1. Pig Butchering Scams

Pig butchering is an admittedly unpleasant name for a scam in which perpetrators win the trust of victims over time and convince them to buy fake crypto assets. The scammer, who often appears wealthy and financially savvy, might meet someone on social media, a dating app, or via a text message.

They may share stories about their life and send alleged selfies, but find excuses not to meet in person or have video calls. Eventually, they offer to help their target pursue buying crypto so they too can profit. However, the scammer directs the person to an illegitimate platform that steals their money.

Why is it called “pig butchering”? That turn of phrase refers to the practice on a farm of fattening up pigs before they are slaughtered. Scammers “fatten up” their victims with ongoing attention, securing their trust to more easily cheat them.

2. Rug Pulls

A rug pull scam involves a supposed crypto developer talking about a great new project (a new kind of crypto or NFT, perhaps) that will be a lucrative opportunity. The scammers often create hype on social media, promising high returns or innovative technology to attract investors. Once enough people invest and the token’s value rises, the creators abandon the project or disappear, taking the raised assets with them. This leaves the participants with worthless tokens.

The “rug pull” name comes from the saying about pulling the rug out from under someone. The scammer makes their victim feel as if they will reap a considerable profit, but when the rug gets pulled, they are actually left with nothing.

3. Romance Scams

In a romance scam, the fraudster forms a romantic relationship with the victim. The scheme often starts on a dating app or social media, where the scammer builds a fake persona (often attractive, trustworthy, and emotionally available) to gain the victim’s affection and trust.

In some cases, the scammer will cultivate a relationship over months or even years. Eventually, they will suggest that the victim buy into a profitable crypto opportunity. They might even position it as a way to grow funds for a wedding or purchasing a home together. However, it’s just a way to whisk their “darling’s” money away.

4. Fake Exchanges and Wallets

Scammers are getting so good at their pursuits that it can be almost impossible to tell what’s real and what’s fake. That’s what fuels fake exchange and wallet scams. A victim might receive communication about or see an ad for what seems to be a legitimate and possibly even well-known crypto exchange or digital wallet. There might even be a celebrity endorsement involved (this could be an AI-generated deepfake) and/or claims of major returns on a slick-looking site.

However, these can be fraudulent offerings that look almost identical to real crypto exchanges and wallets. If a crypto buyer, holder, or seller interacts with these fake platforms, they can have their funds stolen.

5. Phishing Attacks

In a phishing attack, scammers reach out to victims, often by email, text message, or social media communication, saying there’s an urgent problem with an account that needs attention. Targets are then lured into clicking fake links and entering their private information (such as private keys or wallet passwords) on cloned platforms, giving attackers access to their funds.

6. Giveaway and Airdrop Scams

In this scheme, scammers trick people into sending cryptocurrency or sharing personal information under the guise of receiving free tokens. Scammers often impersonate well-known companies, influencers, or crypto projects on social media, claiming to host “giveaways” or “airdrops” (a method used by blockchain projects to distribute free cryptocurrency tokens to users’ digital wallets).

To qualify for the freebie, users must typically first send a small amount of crypto to “verify” their wallet. In reality, victims never receive anything in return, and the scammers disappear with the funds.

7. Pump and Dump Schemes

A pump and dump scheme in the crypto world is a fraudulent practice in which scammers create or acquire large amounts of a low-value crypto and promote it to inflate the token price artificially. They then sell this “in-demand” crypto to unwitting individuals.

That’s the “pump” part of the process. Then comes the “dump,” when scammers sell off their tokens at this inflated price. The supply of the token then soars, the price typically plummets, and the buyers are left with worthless holdings.

8. Ponzi and Pyramid Schemes

Ponzi and pyramid schemes in crypto are fraudulent scams that promise high returns with little or no risk. It’s another type of “get rich quick” scheme. In a crypto-based Ponzi scheme (named after 1920s con artist Charles Ponzi^[2]), the victim thinks they are transacting with a legitimate form of cryptocurrency that will have solid returns. However, when they buy coins, they are actually funding returns to those who paid into the offering earlier. The scheme relies on a constant inflow of new money to appear profitable and it collapses when new investments slow down.

Crypto pyramid schemes, on the other hand, depend on recruiting new participants. Members earn money (typically free tokens) primarily by bringing in others rather than from genuine investment. New recruits pay into the system, with a portion of their fees going to the person who recruited them and those above them in the “pyramid.” The scheme collapses when it’s impossible to recruit enough new people to pay everyone, leaving most participants at the bottom with losses.

9. Impersonation and Fake Support Scams

In these cryptocurrency scams, the orchestrators pretend to be allied with well-known companies. Typically, they reach out using authentic-looking emails, text messages, social media messages, or computer pop-ups, or by a phone call. Often, their ruse is to say there is an issue with the victim’s account, and that their money or credentials are at risk. In order to get the problem fixed, the victim needs to buy crypto and send it their way.

In another version of this scam, the fraudsters claim to be working for an established or new business that is now issuing their own crypto coin or token. They might have a legitimate-looking website, press releases, and news articles to back up their claim. This is false, and if you purchase the new offering, you are left with nothing of value.

10. Malware and Remote Access Scams

In this crypto crime, scammers steal people’s coins in one of two ways. In a crypto malware scam, fraudsters trick users into downloading malicious software, often through phishing emails, fake apps, or fraudulent websites. The software then steals private keys or passwords to transfer funds to the attacker’s account.

In a remote access scam, the criminal convinces the victim that there is a problem with their hardware or account access, which can be repaired via remote access. Once the target allows access, the scammer may direct them to log into their crypto exchange, claiming they need to “secure” their funds. This allows the attacker to steal sensitive information or drain their crypto assets.

Examples of Cryptocurrency Scams

Here are two examples of well-known cryptocurrency scams to be aware of and learn from:

•   As reported by CNN^[3], Dennis Jones, an 82-year-old grandfather, was befriended on Facebook by a woman he believed was named Jessie, who gradually encouraged him to buy crypto. Having full trust in Jessie, Jones complied and ultimately invested everything he had. Then one day, Jessie — and all of the money he invested — disappeared, leaving him in ruin.

•   An example of a rug pull unfolded with BitConnect.^[4] Its BitConnect Coin (BCC) promised returns of up to 40% per month. As the government began looking into claims that it was a Ponzi scheme, BitConnect shut down in January 2018, wiping out $2 billion in consumer funds.

How to Protect Yourself from Crypto Scams

Knowing the top crypto scams to watch out for in 2025 is one step towards protecting yourself. But since scammers continually develop new ploys and crypto transactions usually are not reversible, also follow these tips:

•   If you are told you must pay in crypto, you are likely dealing with a scammer.

•   When you hear about “guaranteed” returns on crypto, you are probably dealing with an untrustworthy individual or business, according to the Federal Trade Commission (FTC).

•   Be wary of crypto offers via email, text, phone, or on social media that claim to come from a well-known brand or business. This might be a scammer engaging in impersonation. Rather than immediately engage, look up the company’s official contact details and reach out that way.

•   Don’t let dire warnings that your bank account, crypto account, or computer are at risk rattle you. A sense of urgency is a tool scammers often use. Don’t rush to click on links, reveal sensitive information, or pay in crypto. Slow down, and again contact the supposedly at-risk account via publicly-available information.

•   Dating and crypto don’t mix. Whether you’ve been seeing someone for a week or a year, if they are guiding you toward crypto transactions, it may well be a scam.

•   Be cautious with the promise of free cash or crypto, especially excessively generous offers. This could be a ruse, as described above.

•   If you are transacting in crypto, opt for reputable platforms and verify the URL carefully. Scammers can create fake platforms that are just one letter off.

•   To protect your accounts, use multifactor authentication (MFA) to enhance security. Use unique passwords as well.

•   If you believe you’ve been the victim of crypto fraud, report the scam as quickly as possible to the authorities (including the FTC and the FBI’s Internet Crime Complaint Center), as well as the cryptocurrency exchange company you used to send the money.

The Takeaway

While crypto blockchain technology is generally thought of as transparent and secure, scams related to crypto are unfortunately rising. Being aware of the common ploys and staying alert to emerging ruses is an important step in protecting yourself when buying, holding, and selling crypto.

Soon, SoFi members will be able to buy, sell, and hold cryptocurrencies, such as Bitcoin, Ethereum, and more, and manage them all seamlessly alongside their other finances. This, however, is just the first of an expanding list of crypto services SoFi aims to provide, giving members more control and more ways to manage their money.

Join the waitlist now, and be the first to know when crypto is available.

FAQ

What is the most common type of crypto scam?

According to the FBI, one of the most common types of crypto scams is what is known as pig butchering. In this scenario, the scammer wins the confidence of a person and convinces them to transact with what winds up being fake crypto.

How can you tell if a crypto website or offer is fake?

Some ways to identify a fake crypto website or offer are as follows: a URL that is slightly different from the expected name and spelling; unrealistic promises (such as guaranteed growth); lack of contact details or full list of team members’ names; pressure to act quickly; low-quality websites; and issues with withdrawing funds.

What is a pig butchering scam and how does it work?

A pig butchering scam is a type of long-term fraud where scammers develop a relationship with a victim over weeks or months before persuading them to get involved in a fake online cryptocurrency scheme. The term describes the process of “fattening up” a victim with false affection and trust before “slaughtering” their finances.

Can you recover money lost in a crypto scam?

Getting money back from a crypto scam is difficult because crypto transactions are usually irreversible. That is why it is especially important to be aware of common and emerging crypto scams to protect yourself. If you do lose funds this way, report the crime as quickly as possible to government authorities and the local police. Be highly suspicious of “recovery companies” that contact you, as these are likely another scam to get more money from you.

Are crypto airdrops and giveaways usually legitimate?

Crypto airdrops and giveaways can be a legitimate promotional method. However, they are also used by scammers, so it’s important to do your due diligence when considering an offer. Signs that you may be dealing with a scam include the lack of an official announcement, promises of unrealistically generous rewards, URLs that are similar to a legitimate address, requests for private keys, grammatical errors, and low-quality graphics.

Article Sources

1. FBI. FBI Internet Crime Report 2024.
2. U.S. Securities and Exchange Commission. Ponzi Schemes.
3. CNN. Killed by a scam.
4. U.S. Securities and Exchange Commission. Complaint against BitConnect.

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Photo credit: iStock/chekyfoto

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