Crypto Scams: How to Spot, Avoid, and Recover

When navigating the crypto world, crypto scams, fraudulent schemes that trick investors into losing digital assets are a constant threat. Also known as crypto fraud, they range from simple phishing attacks to complex Ponzi schemes. A phishing attack, a deceptive message that lures users into revealing private keys or login details often serves as the first entry point for larger scams. Understanding crypto scams is the first step to protect your portfolio.

Common Types and How They Interact

Most fraudsters rely on a chain of tactics. A rug pull, an exit scam where developers abandon a project and cash out with investors' funds typically follows hype built through a fake ICO, an initial coin offering that never intended to deliver a functional token. These two often coexist: the ICO draws in money, the rug pull empties it. Meanwhile, a Ponzi scheme, a promise of high returns funded by new investors rather than legitimate profit can masquerade as a legitimate staking platform, using the same social proof that fuels ICO hype. The relationship is clear: crypto scams encompass phishing attacks, which feed into fake ICOs, which can end in rug pulls or Ponzi payouts.

Detecting these schemes requires a mix of common sense and simple tools. Check if the project’s code is open‑source, verify team identities, and use blockchain explorers to trace token flows. Compliance services that provide AML/KYC checks can flag suspicious wallets before you invest. If you spot a sudden spike in token holdings by a single address, that’s often a red flag for a rug pull. By staying aware of these patterns, you’ll be better equipped to avoid the loss that many newcomers experience.

Below you’ll find a curated collection of guides that dive deeper into each scam type, walk you through practical detection methods, and show how to recover if you’ve been targeted. Whether you’re just starting out or you trade daily, the insights here will help you stay one step ahead of fraudsters.