Exchange-How To Identify Scams

This content is for informational purposes only and does not constitute financial advice.

Scams often try to rush you or promise easy money. Be careful if someone asks for your login details, wallet keys, money upfront, or tells you to move funds quickly. If a message feels unexpected, secretive, or too good to be true, stop and double-check before doing anything.  

Common Crypto Scams to Watch For:

1. Investment Scams (Including “Pig Butchering”)

These scams promise high or guaranteed returns through crypto trading, staking, or mining platforms.

Red flags:

• You can’t successfully withdraw your funds

• You’re asked to send more money to “unlock” a withdrawal

• You're asked to pay taxes or capital gains upfront

• You must use third-party wallets or intermediaries

• Returns are guaranteed or unrealistically consistent

• The platform is new, hard to verify, or has little online presence

2. Phishing Scams

These scams try to steal your login credentials, private keys, or seed phrases.

Red flags:

• You’re asked to share a seed phrase or private key

• Messages create urgency or use threats

• Links or sender addresses look slightly misspelled

• You’re contacted unexpectedly

3. Romance Scams

Scammers build emotional relationships to pressure victims into sending crypto.

Red flags:

• The person avoids meeting in person or video calls

• Commonly facilitated through social media platforms

• Financial requests are tied to emotional pressure

• You’re encouraged to invest using a platform they recommend

• Conversations quickly shift toward crypto, investing or an incredible opportunity 

4. Impersonation and Authority Scams

Scammers pretend to be company executives, support agents, or regulators.

Red flags:

• You’re told to move funds to a “safe” or “temporary” wallet

• The request is framed as urgent or an emergency

• Communication happens through unofficial channels

• You’re discouraged from verifying the request

5. Fake Giveaways and Airdrops

These scams promise free crypto in exchange for sending funds or approving transactions.

Red flags:

• You’re asked to send crypto first

• The offer seems too good to be true

• Endorsements or sponsors can’t be verified

• You’re asked to approve broad wallet permissions

6. Rug Pulls and Fraudulent Projects

Developers raise funds and then abandon the project.

Red flags:

• The team is anonymous or unverified

• Smart contracts haven’t been audited

• Liquidity isn’t locked

• A small group controls most of the tokens

7. Malware and Wallet Drainers

Malicious software steals crypto directly from wallets.

Red flags:

• Software comes from unofficial or unknown sources

• Unusual or excessive permissions are requested

• Funds move without your approval

8. Employment and Task Scams

Fake job offers require upfront crypto payments.

Red flags:

• You’re asked to pay to receive payment

• Compensation sounds unrealistic

• The employer or company can’t be verified

How to Stay Safe:

• Slow Down: Scammers want you to panic. If someone is rushing you to send money, hang up or stop messaging.
• Never Share Your Recovery Phrase: If you do own crypto, never give your private passwords or "seed phrases" to anyone. No legitimate company will ever ask for them.
• Verify First: If you get a suspicious call from a business, hang up and call that company back using a phone number from their official website or a paper bill you have at home.