With Bitcoin trading around $100,000 and other cryptocurrencies surging in value, scammers are exploiting the growing interest in crypto to defraud new investors. In November 2024, when Bitcoin soared from $68,000 to nearly $100,000, authorities warned of a rise in crypto-related scams. Over 50,000 investment scams were reported in the first half of 2024 alone, resulting in nearly $2.5 billion in losses.
Filipinos, in particular, have expressed concerns about entering the Web3 space due to fears of scams, as highlighted in global surveys by Consensys and YouGov.
👉 Protect your crypto assets with these essential security tips
Table of Contents
- Romance/Love Scams
- Fake Mining Schemes
- Pump and Dump Schemes
- Fake Cryptocurrency Exchanges
- AI Deepfake Fraud
- Pig Butchering Scam
- Clipper Malware
- Impersonation Schemes
- How to Avoid Crypto Scams
- FAQs
Romance/Love Scams
Romance scams involve fraudsters posing as romantic partners to manipulate victims into sending money. These scams often use fake identities, love-bombing tactics, and fabricated emergencies to exploit trust.
Recent Cases:
- Philippine authorities arrested seven individuals in Angeles City for involvement in global crypto scams using romance tactics.
- Over 400 workers were arrested in Parañaque City for running fraudulent investment and romance scams.
Fake Mining Scheme
Some companies falsely advertise Bitcoin cloud mining services, taking money without delivering promised returns. Despite legitimate services existing, fraudulent platforms prey on investors' eagerness to acquire crypto.
SEC Advisories:
- The Philippine SEC has flagged multiple unregistered platforms like Coinmate Plus, Trade 13.0 Serax, and Glass Coin.
Pump and Dump Scheme
Pump and dump schemes involve inflating a token’s price through aggressive promotion, followed by a mass sell-off, leaving unsuspecting investors with losses.
Recent Incident:
- Multiple local X accounts, including GMA Network and ABS-CBN News, were hacked to promote the $HACKED token in a pump-and-dump scheme.
Fake Cryptocurrency Exchanges
Scammers lure investors with promises of high returns on fake platforms, allowing small withdrawals to build trust before locking accounts and demanding additional fees.
Global Cases:
- Vietnamese authorities arrested suspects behind BitMiner, a fake mining site that defrauded 200 victims of $157,300.
AI Deepfake Fraud
AI deepfake fraud uses artificial intelligence to create fake media, such as videos and images, to impersonate individuals for scams.
Notable Case:
- A Hong Kong crime syndicate used deepfake romance scams to defraud over $4.37 million across Asia.
Pig Butchering Scam
This scam involves building trust with victims through fake investments, promising high returns, and disappearing after collecting funds.
Recent Crackdown:
- Indonesian authorities dismantled a major crypto scam ring with Binance’s help, recovering $200,000 in stolen funds.
Clipper Malware
Clipper malware alters wallet addresses copied to a clipboard during transactions, redirecting funds to hackers.
Prevention Tips:
- Avoid unofficial apps and verify wallet addresses manually before transactions.
Impersonation Scheme
Scammers impersonate trusted entities, such as exchange support teams, to steal sensitive information or funds.
Philippine Incidents:
- Coins.ph’s X account was hacked to promote a fake token.
- Ben&Ben’s YouTube channel was hijacked for an $XRP scam.
How to Avoid These Schemes
- Research Thoroughly: DYOR (Do Your Own Research) before investing.
- Use Official Sources: Download apps only from trusted stores.
- Verify Identities: Confirm identities via video calls.
- Avoid Unrealistic Promises: High returns with low risk are red flags.
- Double-Check Transactions: Manually verify wallet addresses.
- Enable Security Features: Use 2FA and strong passwords.
👉 Learn how to secure your crypto investments today
FAQs
What are the most common crypto scams?
Romance scams, fake mining schemes, pump-and-dump schemes, and impersonation fraud are among the top threats.
How can I verify a crypto investment opportunity?
Check regulatory advisories, read reviews, and confirm platform legitimacy through official channels.
What should I do if I fall victim to a scam?
Report to local authorities, notify your exchange, and monitor transactions for further suspicious activity.
Are hardware wallets safer than software wallets?
Yes, hardware wallets provide offline storage, reducing exposure to malware and hacking risks.
How do I spot a deepfake scam?
Look for unnatural speech patterns, inconsistencies in visuals, and verify identities through trusted communication methods.
Stay informed and vigilant to protect your crypto assets from evolving scams.