Summary
A fake token scam is a form of cryptocurrency fraud where scammers create and distribute counterfeit tokens to deceive investors. These scams can take various forms, such as fake airdrops and phishing attacks. Sometimes, fake tokens are also used in recovery scams , where fraudsters send fake tokens to convince victims that their lost cryptocurrency can be recovered. This article explains how to recognize and prevent fake token scams.
What is a fake token scam?
In a fake token scam, fraudsters create a fake token that resembles an existing or new cryptocurrency. Fake tokens are also referred to as scam tokens or counterfeit tokens. Scammers use various methods to trick people into buying or using these tokens, including:
- Phishing websites that mimic legitimate platforms
- Fake airdrops where victims receive 'free tokens' that they must "activate"
- Fake ICOs (initial coin offerings) where people invest in a token that does not actually exist
- Recovery scams, where scammers send victims a fake token and convince them they can recover their lost cryptocurrency by following certain steps
Fake tokens have no real value, cannot be sold, and are sometimes designed to steal funds from users through malicious smart contracts.
How do I recognize a fake token?
Fake tokens can look identical to real cryptocurrencies like BTC, ETH, and USDC. If you receive crypto, it is advisable to use a blockchain explorer to verify whether you received a real token or a fake one. Well-known blockchain explorers include Etherscan and BscScan.
Use the table below to identify key differences:
| Characteristic | Real token |
Fake token |
|---|---|---|
| Token address |
Matches the official website, blockchain explorers, and sources like CoinGecko and CoinMarketCap |
Differs from the official address |
| Verification badge in blockchain explorer |
Often has a blue verification badge in Etherscan or BscScan |
Phishing warning (not always applicable) |
| Number of transactions |
High trading activity and many transactions per day |
Few or no transactions, often only between a few wallets |
| Token holders |
Distributed across hundreds of thousands/millions of wallets |
Mostly concentrated in a few addresses |
| Name and ticker |
Exactly as listed on official platforms (e.g., USDC or BTC) |
Often contains typos or slight variations (e.g., USDCC, BTTC, or ERC-20 TOKEN) |
| Value and tradeability |
Can be checked on trusted marketplaces such as Bitvavo, CoinMarketCap |
No value, not tradable on major exchanges |
See the image below for how fake tokens appear on Etherscan.
How can I prevent fake token scams?
- Only use official links from crypto projects and Bitvavo.
- Verify the token address before purchasing a token.
- Do not engage with an unknown third party without independent verification and thorough research to confirm they are trustworthy.
- Check if the token has a verification badge in blockchain explorers such as Etherscan or BscScan.
- Do not click on unknown links in messages about free tokens.
- Always check the actual value of a transaction instead of relying solely on the number of tokens transferred.
Frequently Asked Questions
How do I know if a token is real?
Check the token address, trading history, and holders in a blockchain explorer. Look for independent audits and verify if the token has a verification badge.
What if I have fallen victim to this type of fraud?
Unfortunately, it is not possible to recover funds that have been lost. Report the scam to Bitvavo via fraud@bitvavo.com and the police.
Does Bitvavo support new tokens?
Bitvavo only lists tokens that meet strict security and regulatory requirements. New listings are announced via the official website and social media channels.