In this article, we discuss different types of cryptocurrency scams and how to recognize them using real examples. Unfortunately, we regularly hear stories of people who have been scammed, often with significant amounts of money. These situations could often be avoided if people had more knowledge on the subject. That is why we have written this article. Hopefully, we can prevent as many scams as possible.
Above all, share this page with others around you who are also interested in cryptocurrency, especially if they are still inexperienced. This is because even experienced cryptocurrency users can fall prey to scammers.
Are you missing a scam that we should also cover? Let us know at support@btcdirect.eu.
The cryptocurrency golden rules
We begin with the most important golden rules for those with limited time. Following these rules will already make you much safer. However, we also recommend reviewing the examples further down the page to become aware of all scams and how to identify them.
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Keep your recovery seed phrase safe
If you have a software or hardware wallet, never share your recovery seed (12 or 24 words) with anyone, even if they claim to want to help or represent an organization. Never enter your recovery seed on your mobile or computer. Do not take a photo of it or write it in your phone’s notepad. Store your recovery seed offline on paper or, better yet, in a SOLIDHODL.
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Be vigilant in online communities
If you are active in communities like Telegram, be alert. If you ask a question in a Telegram group for a specific coin, chances are someone with a name like “Admin” will contact you, pretending to help. Almost always, this person is trying to scam you.
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Beware of spam
If you receive a message via WhatsApp or email from a cryptocurrency party, always check if the message is authentic before responding.
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Too good to be true
If something sounds too good to be true, it probably is.
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Stay aware of current events
Scammers often exploit current events. For example, if there’s news about Trustwallet, scammers might pose as Trustwallet and send you emails. Or if Binance exits the Dutch market, they might concoct reasons why you need to click a link in their email. Always stay alert and verify the information.
By following these golden rules, you can avoid common scams and keep your cryptocurrency safe.
Examples of cryptocurrency scams
- Pre-installed hardware wallets
- Emails/Messages from software or hardware wallet providers
- Emails/Messages from crypto exchanges
- Investing through non-existent "exchanges"
- WhatsApp/Telegram groups or messages
- Ads on Platforms like YouTube
- Ads via Google search results
- Inducing Installation of fake apps
- Fake airdrops
- Reactivation scam (Blockchain)
- Task scam
1. Pre-installed hardware wallets
How hardware wallet manufacturers package their products may vary, but one thing is always the same: a hardware wallet is never pre-configured.
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Pre-configured hardware wallets
A hardware wallet is never pre-configured. If you receive a hardware wallet that is already set up, it is a scam. -
PIN code
You always set the PIN code for your hardware wallet yourself. If you receive a hardware wallet with a pre-set PIN code, it is a scam. -
Recovery seed phrase (12/24 words)
You receive the recovery seed phrase during the setup of the hardware wallet. It is generated by the hardware wallet and is unique to you. No one else should know these words. If you receive a hardware wallet with an included recovery seed phrase, it is a scam.
How to prevent this?
Check on the manufacturer’s website if the seller is an official reseller. Also, pay attention to the points mentioned above.
Below is an example of someone who bought a Ledger through a non-official reseller. The scammers put a lot of effort into this scam, as the product packaging looked brand new, and all the documentation was in Ledger’s style. What was wrong? The Ledger was pre-configured and included a piece of paper with a PIN code and recovery seed. By placing it under a scratch-off layer, the scammers made it seem secret, but of course, it wasn’t.
Additionally, there was an instruction booklet that made it seem normal that the recovery seed was pre-configured. This is never the case.
2. Emails/messages from software or hardware wallet providers
A common scam involves emails that appear to come from well-known wallet providers like Trustwallet, Metamask, Ledger, or Trezor, but are not. The scammers' goal is always the same: to entice you to enter your recovery seed. They often do this by creating fear or making you think you need to act quickly to avoid negative consequences, such as claiming you need to verify your wallet as soon as possible for X or Y reason.
Below is an example of an email supposedly from "Ledger." Here are some points to recognize it’s not genuine:
- The sending email address is not from Ledger.
- The email’s formatting is sloppy and not quite right; the real Ledger logo is not used correctly.
- The reason they give for clicking their link is baseless. For instance, a 'deprecated Ledger Live account' does not exist.
- The receiving email address (masked in the example below) is not usually used for crypto matters.
Another example below is an email from the software wallet Metamask.
The sending email address immediately stands out as suspicious. Moreover, Metamask does not know your email address. The main thing to realize is that the content is complete nonsense. For example, they claim you need to perform a manual update due to a blockchain update for the new year. Such requests do not exist.
Here you see two clear red flags: they try to scare you by threatening the loss of your cryptocurrency and want you to act quickly to prevent it.
3. Emails/messages from Exchanges
Scammers often cleverly exploit current events, such as the bankruptcy of the exchange FTX at the end of 2022, where many people lost their funds. What do these scammers do? They send out mass emails pretending to be from FTX, encouraging customers to claim their funds. Below is an example.
Scammers cleverly use the name Kroll, which actually handled the FTX’s bankruptcy. However, Kroll’s email address is noticing@ra.kroll.com, not xxx@noticing.ra.kroll.com. Also, pay close attention to the links in these emails. They may appear to lead to claims.ftx.com, but if you hover over the link, you will see it leads to a completely different site. Stay alert!
Below is an example of Bitvavo. You are encouraged to click a link, but it is not legitimate. If you hover over the link, you will see it leads to a different site. Also, note the sender address, which is often immediately suspicious.
Another example is Binance, suggesting that your account is blocked for some reason. This is not true. You can recognize this by the email address, the unprofessional text, and the link behind the ‘Secure My Account’ button, which is not from Binance itself.
4. Investing through non-existent "exchanges"
If someone promises to help you with investments and guarantees attractive returns, it’s often too good to be true. How do you recognize this? Often, you get access to a platform that looks real but is not. The values they show you are fake, intended only to persuade you to transfer crypto. You can usually recognize such a platform by its unprofessional layout. Search for the platform’s name on Google and the organization they claim to be affiliated with. Often, within 30 seconds, you will discover it is a known scam.
5. WhatsApp groups or messages
The infamous Binance WhatsApp groups are a common scenario. You are suddenly added to a group with hundreds of others. Initially, you cannot send messages, but someone posing as a Binance employee starts promising prizes and rewards to create a crypto chat group. Critical voices are often removed immediately, while positive reactions are often placed by the same scammers under different accounts. They try to gain your trust with the ultimate goal of stealing your cryptocurrency.
Another example is when you suddenly receive a message with a username and password for logging in somewhere. You can actually log in, but the platform is not real. You are enticed to invest by promising large profits, but none of these profits are real. They simply manipulate figures to persuade you to invest more. The balance they communicate is also not real. If you want to move or withdraw money, they will first entice you to pay "transaction fees" or "taxes." This is all fraud, aimed solely at stealing as much money as possible from you. This type of scam can also occur via other messaging apps like Telegram.
6. Ads on platforms like YouTube
If you are researching Bitcoin or crypto and watching YouTube videos, the algorithm may consider you as interested, which is not a problem in itself. However, sometimes scammers manage to temporarily place ads on channels like YouTube. They often use names like Elon Musk or Michael Saylor to lure you into sending Bitcoin or Ethereum to a specific address with the promise of getting double back.
Below is an example with Michael Saylor, where you are lured to scan a QR code for a supposed 'give-away' event. This is not real. Be warned.
7. Ads via Google Search Results
Even Google search results are not always trustworthy. Suppose you search for "Trezor." The first result might not actually be from Trezor. You could end up on a site trying to lure you into entering your seed phrase. If you do, you are guaranteed to lose your crypto.
Below is an example. The search was for "Ledger Nano X" and the first result is an advertisement site that is not from Ledger but appears at the top because it is an ad.
If you click on the site, you are directed to a fake Ledger site, as shown below. The exact layout may vary, but generally, they try to entice you to enter your seed phrase by claiming there is an "error" during pairing and that you need to enter your seed phrase to fix it. This is a scam.
8. Inducing installation of fake apps
Although we do not have an example here, it is possible that scammers still offer fake versions of apps in the App Store or Google Play Store. If you want to download Metamask or Ledger Live, carefully search the store to ensure you are installing the authentic software.
9. Fake airdrops
You may also receive emails about fake airdrops. While airdrops are real, it does not mean every airdrop is legitimate. An example is an email indicating that there is $1,040,666.67 worth of value to claim. Is this real? If something seems too good to be true, it often is!
10. Reactivation scam
The scammers will send you a message (with a sense of urgency) to click on a link to a website or call a phone number in order to 'update' or 'reactivate' your ''Blockchain'' wallet and or similar account to get access to ''frozen'' funds. These scammers will pretending to be from a legitimate company and try to persuade you to follow certain steps (for example, pay a fee) to get acces to your funds.
11. Task scam
A task scam lures victims in with the promise of easy money for completing simple online tasks. These tasks may include liking videos, writing reviews, or following social media accounts. Scammers typically approach victims via Telegram, WhatsApp, or Facebook, offering a steady income for minimal effort.
How it works:
- Initial payment as bait – You receive a small payment for your first tasks to build trust.
- Accumulated balance but no payout – Your earnings appear to grow in a dashboard, but when you try to withdraw, you're asked to deposit money first.
- Loss of your deposit – Once you send money, the scammers either disappear or keep demanding more, preventing you from ever getting paid.
These are the common scams. Are we missing a scam that should be covered? Let us know at support@btcdirect.eu.
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