How can I recognize a crypto scam?

Summary

In this article, you’ll learn how to recognize a crypto scam and protect yourself. We explain step-by-step how scammers operate, what warning signs to look out for, and what actions you can take to avoid becoming a victim.

What is a crypto scam?

A crypto scam is a form of fraud where scammers use deception to gain access to your funds or personal information. They often promise unrealistic profits, use screen sharing software like AnyDesk, or pressure you into acting quickly. 

What types of crypto scams are there?

There are several types of crypto scams that use deceptive tactics. Below are the most common ones explained in detail:

1. Giveaway scam
   In this scam, fraudsters impersonate well-known individuals or influencers, for example via social media or videos. They promise to double your funds if you send a certain amount to their wallet address. They often use advanced technology like deepfakes or AI to make their claims more convincing. An example might be a message like: "Send 1 ETH and receive 2 ETH back!"
   Read our support article for more information.
2. Recovery scam
   This scam targets people who have already been victims of fraud. Scammers reach out claiming they can recover stolen funds. They often ask for an upfront fee or a small investment. This is always a scam, as blockchain transactions are irreversible and stolen funds cannot simply be recovered.
   Read our support article for more information.
3. Romance/dating scam
   In a romance scam, the scammer builds a long-term online relationship with the victim. Once enough trust is built, the victim is asked to invest in a fraudulent platform or crypto wallet. Emotional manipulation is often used, such as suggesting the investment is to build a future together.
   Read our support article for more information.
4. Telegram scam
   Scammers contact you on Telegram with fake messages that appear to come from Bitvavo employees or official Bitvavo channels. A common message is: "Send 1 BTC and receive 2 BTC back!" If you send crypto to the wallet address, it is stolen and the funds are gone forever.
   Read our support article for more information.
5. Employment scam
   You receive a fake job offer, often through social media or email. Scammers ask you to perform simple tasks, such as transferring crypto to a wallet address, in exchange for a commission. Eventually, you lose all the funds you transferred.
   Read our support article for more information.

How do crypto scams work?

1. The introduction phase

Scammers make contact through:

• Phone calls from so-called "financial experts".
• Messages via WhatsApp, Telegram, or email.
• Ads on social media promising high profits.

They try to lure victims to a fraudulent website or keep in contact through personal messages.

2. Building trust

Scammers spend time earning your trust by:

• Showing professional-looking websites with fake dashboard statistics.
• Sharing success stories or fake reviews from other "users".
• Pretending to be crypto experts.

3. Transferring funds

Scammers tempt you to transfer funds by:

• Promising unrealistic profits after a small investment.
• Convincing you to move money to a new wallet.
• Creating wallets via screen sharing software, giving them full access.

4. Moving the funds

Once the crypto is sent to the scammer's wallet address:

• The funds are quickly forwarded to other wallets.
• Traceability is made difficult by multiple transactions.

5. The illusion of success

The scammer makes it seem like you’re making a profit and stays in touch to ask for more money. When you try to withdraw your funds, they create new obstacles such as:

• Paying “taxes” or “withdrawal fees”.
• Additional deposits supposedly required to receive the full amount.

Warning signs of a crypto scam

Watch out for these signs:

• Pressure to act quickly.
• Unrealistic promises of high returns.
• Requests for screen sharing via software like AnyDesk.
• Websites with spelling errors, stock photos, or unbelievable claims.
• Fake services, such as portfolio management or “help” with investing.

How can I protect myself from crypto scams?

• Be alert to signs like unrealistic promises or pressure to act fast.
• Do not share personal information and do not allow screen sharing.
• Check the reputation of websites using platforms like Trustpilot or Whois.

What should I do if I think I’m a victim of a scam?

Falling victim to a scam can have serious consequences. Victims often lose all their funds, which can have both financial and emotional impacts. Scammers may also try to obtain sensitive information like identity details or images of ID documents under the guise of “KYC” (Know Your Customer) verification.

If you think this has happened to you, follow these steps:

1. 1. Take immediate action in case of identity fraud: Check the Dutch government's website for advice on how to report and limit identity fraud.
   2. Protect your device: If you clicked a suspicious link, your device may be infected with a virus or malware. In that case, it’s wise to:
      • Reformat your device.
      • Change all your passwords to prevent further damage.
   3. Report the scam: Consider reporting the scam to the police and possibly also to an organization like Fraudehelpdesk.

FAQ

Want to know more? Contact our support team or read our additional safety articles in the Bitvavo Help Center.