What are the most common scams in cryptocurrency?

The cryptocurrency industry has unfortunately seen its fair share of scams and fraudulent activities. Here are some of the most common types of crypto scams:

  1. Ponzi Schemes: Ponzi schemes promise high returns on investments by using funds from new investors to pay off existing investors. These schemes eventually collapse when new investors dry up, leading to significant financial losses for participants.
  2. Fake Initial Coin Offerings (ICOs): In an ICO scam, fraudsters create a fake cryptocurrency or token sale, enticing investors to purchase these non-existent or worthless tokens. They may use deceptive marketing tactics and false promises to attract unsuspecting investors.
  3. Phishing Attacks: Phishing attacks involve impersonating legitimate websites or services to trick users into revealing their sensitive information, such as private keys or login credentials. Scammers may create fake cryptocurrency exchange websites or wallets to steal users' funds.
  4. Pump and Dump Schemes: In pump and dump schemes, scammers artificially inflate the price of a low-volume cryptocurrency by spreading false positive news and buying up large amounts of the coin. Once the price has risen, they sell their holdings, causing the price to crash, resulting in significant losses for unsuspecting investors.
  5. Malware and Wallet Hacks: Malicious software and wallet hacks are aimed at stealing users' cryptocurrency holdings. This can be done through malware that infects computers or mobile devices, enabling attackers to gain unauthorized access to users' wallets and transfer their funds.
  6. Fake Exchanges and Trading Platforms: Fraudsters may set up fake cryptocurrency exchanges or trading platforms, promising low fees and high returns. These platforms often lack proper security measures and regulatory compliance, resulting in the loss of deposited funds or the inability to withdraw funds.
  7. Social Media Scams: Scammers use social media platforms to impersonate influential individuals or cryptocurrency projects, offering fake giveaways, investment opportunities, or endorsements. Users are often tricked into sending funds to fraudulent accounts or revealing their private information.

If you come across a potential crypto scam, it's important to report it to the relevant authorities or regulatory bodies in your jurisdiction.

Start with crypto today

Sign up on NBX, a trusted Norwegian cryptocurrency exchange and custodian, and kickstart your crypto journey safely.
Crypto 101
Explore the most popular crypto terms and find answers to your questions.

What is Bitcoin?


What is NFT?


What is Proof-of-Stake?


What is Ethereum?


What is Chainlink?


What is a DApp?


What is DeFi?


What is Shiba Inu?


Who owns the most Bitcoin?


Insights, Trends, Analysis

Unraveling the cryptocurrency industry revolution.

AI tokens surge as NVIDIA announces record quarterly earnings

AI-related tokens surged shortly after NVIDIA posted their earnings for the fourth quarter. Learn more here.
2 minutes

What happened with Ethereum - week 1 in review: Ethereum (ETH)

Many decided to buy Ethereum during the first week of the year. Learn why here.
2 minutes

Why Ethereum rallied - week 48 in review: Ethereum (ETH)

The week in review: Ethereum (ETH) week 48 - 27th of November to 3rd of December - NBX Report.
2 minutes
Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.