Scammers are getting smarter. And if you’re not careful, you could fall for one before you even realize what’s happening.
Over the past few years, cryptocurrency scams have exploded. People chasing quick money in crypto are losing their savings, their trust, and sometimes even their peace of mind. Scammers know how to push buttons—especially when it comes to money. That’s why it’s so important to recognize the red flags before it’s too late.
In this article, we’ll break down the top 10 cryptocurrency scams, how they work, and most importantly—how to stay safe.
Crypto’s exciting. It’s fast. It feels like the future. But that same freedom also opens the door to fraud.
Unlike traditional banks—like 1st Source Bank, where your deposits are insured and your accounts protected—most crypto platforms don’t offer the same level of security. Transactions are almost impossible to reverse. Many people don’t fully understand how crypto works, and scammers take full advantage of that.
Now let’s get into the tricks they’re using…
Let’s start with a classic.
A phishing scam usually starts with an email or text. It might look like it’s from a trusted crypto exchange or wallet, asking you to log in or “verify” your account. But the link? It leads to a fake site that steals your password or private key.
Tip: Never click a link from a message you didn’t expect. Always go to the site directly by typing it yourself.
Ever heard of someone launching a new coin, getting thousands of people to invest—then vanishing overnight?
That’s a rug pull.
It often happens with brand-new cryptocurrencies. Developers promise the moon, people buy in, the price spikes… and then the creators cash out and disappear, leaving investors with worthless tokens.
If someone says, “Just bring in a few friends and we’ll all get rich,” run.
Ponzi schemes promise steady, guaranteed profits by using money from new investors to pay earlier ones. The scam falls apart when new investors stop joining—usually right after the person running it disappears.
Legitimate financial institutions, like 1st Source Bank, will never offer investments based on recruiting others. That’s a huge red flag.
Initial Coin Offerings (ICOs) were once a real way to raise money for crypto projects. But scammers turned them into bait.
They create a fancy website, write a whitepaper full of big promises, and say you’ve gotta invest now—before it’s too late. But the coin? It’s fake. Once they’ve got enough cash, they’re gone.
If it’s a real investment opportunity, it’ll still be there tomorrow.
These scams are all about hype.
A group of scammers buys a cheap coin, hypes it on social media, and encourages others to “get in now!” As more people invest, the price goes up—fast. Then the original group sells everything at the top, crashing the coin and leaving others holding the bag.
If someone’s pushing a coin too hard, especially in group chats or forums, be careful.
This one hurts the most.
Scammers build emotional connections with people—online or through dating apps. Over time, they introduce the idea of investing in crypto together. They show fake profits, fake screenshots… and once you send them money, it disappears. And so do they.
Love and money don’t always mix—especially in crypto.
Have you seen ads with Elon Musk or Mark Cuban promoting a new coin? Most of those are fake.
Scammers use deepfakes, AI-generated videos, and hacked accounts to make it look like celebrities are backing a coin. But they’re not. These are classic cryptocurrency scams.
Always check the official sources before trusting any investment tied to a public figure.
Crypto scammers are all over Twitter, Instagram, and Telegram. They pretend to be real accounts—wallet apps, influencers, even crypto support teams.
They often offer giveaways: “Send us 0.1 ETH and get 1 ETH back!” But once you send it, it’s gone. And there’s no prize coming.
No real company will ever ask you to send crypto as part of a giveaway.
Some scammers send emails claiming they’ve hacked your computer or have compromising photos. They say, “Pay us in Bitcoin or we’ll leak everything.”
It’s scary. But it’s almost always fake.
Don’t panic. Don’t send anything. Report the email and delete it.
This one’s sneaky.
You search online for help with your wallet or crypto account—and you click the first number that pops up. The person on the other end offers to “help,” but they ask for your private keys or remote access to your device.
Now they control your wallet—and your crypto is gone.
Always use official contact pages. Never trust random numbers from a Google search.
Here’s the good news: you can avoid most cryptocurrency scams with a few smart habits.
At 1st Source Bank, we help our clients make informed decisions. Our personal bankers, investment advisors, and fraud prevention team are here to answer your questions—even if the topic is outside traditional banking.
First, don’t blame yourself. These scammers are professionals. They prey on emotion, confusion, and urgency.
If you’ve been scammed:
Most importantly, talk to someone you trust. Don’t suffer in silence.
Crypto can be exciting, but it’s also full of risks. Scammers are creative, convincing, and constantly evolving. But with the right knowledge—and a healthy dose of caution—you can protect yourself.
Don’t let the fear of missing out push you into bad decisions. If something seems too good to be true, it probably is.
Stay informed. Stay alert. And if you ever feel unsure, reach out to your local 1st Source Bank team. We’re here to help.
Be aware of new spoofing scam which involves scammers imitating legitimate phone numbers that are readily available online. 1st Source Bank will never ask you for your username, password, or 6-digit verification code. We advise you not to give this information to anyone even if it appears to be a legitimate request from a known phone number.
Please call us or stop by your neighborhood banking center with any questions.
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