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Signs of Crypto Scam

Updated: May 30, 2023

Crypto scams are a growing problem for the cryptocurrency community. In this article, we will discuss some of the signs you should look for to avoid becoming a victim of a crypto scam.

The promise of free crypto

When a scammer approaches you with the promise of free crypto, they will try to get your attention by offering a wallet app or service. The scam might entail a request to download a crypto wallet to send funds. This type of scam can be especially deceiving in that they'll sometimes even send more crypto back to you. Some scammers may even ask for your bank account information or access to your personal crypto wallets in order to make transfers from your account. If someone offers free crypto-related services on Twitter or Facebook Messenger, it's likely that what they're saying is just another attempt at getting crypto out of unsuspecting users who don't know any better!

Promises of unrealistic returns

Promises of astronomical returns on your investment are a major red flag. It might be tempting to fall for promises of unrealistic returns. Crypto has been known to have periods of unbelievable performance and scammers take advantage of this.

Before investing any money on behalf of yourself or anyone else, always Do Your Own Research (DYOR) first. If possible, find someone knowledgeable about crypto trading platforms that you can TRUST to guide your decision-making process. If you are ever unsure whether the platform is legitimate or not, it’s best to take a step back and get professional help with CryptoConsultz.

Requests for access to passwords, private keys, or seed phrases.

To access your crypto wallet, scammers ask for passwords, private keys, or any other security-related features of your crypto wallet. No legitimate crypto exchange or any crypto-related business will ever ask you for your wallet security details. Never share your private keys, passwords, or recovery phrases with anyone, not even customer support.

Team Transparency

Crypto founders and members of crypto projects are notorious for wanting to stay anonymous. Still, you should practice caution when you aren’t able to validate the members of a crypto project. Look for a “team” or “about” page on the website. If you can't find any names then it's likely a scam. We’ve seen this in the case of crypto projects like the Squid Game coin scam.

When you’re looking into a new project, it’s important to consider the team behind it. This can be a good indicator of whether or not there will be any problems down the road. Most scam-related projects operate anonymously which enables scammers to carry out their acts without being traceable. Next time when you're looking into a project always remember that lack of information about the team is a red flag.

If you are able to find team members' names, look them up on platforms like Linked In, Google them and research their background and experience.

Crypto Exchanges with no KYC procedures

A crypto exchange that does not require ID checks or follow Know Your Customer (KYC) regulations is likely a scam. The digital asset industry is regulated by laws that require specific procedures for the identification of customer information, including identity verification and address verification. Without these measures, your money could be used for illegal activities. Be cautious when sharing your personal information though, just because someone asks for your identification doesn’t mean you should be careless in handing over your personal information and ID.

Lack of technical specifics

Reputable crypto projects most often will have a whitepaper and a roadmap listed on their website. A whitepaper is a document that explains the technical aspects of a project and describes how it will be implemented. It might not be easy to understand but it should include information about the team behind the project, their experience with blockchain or distributed ledger technology (DLT), project tokenomics as well as other relevant facts about the token sale. A project roadmap, or timeline of milestones, is another essential piece of information you should look for when evaluating token projects.If the website lacks these details and transparency about the blockchain it is highly possible it is a scam.

Approached by someone you’ve not met in person

Most crypto scams occur through social engineering. Social engineering can be defined as “the use of deception to manipulate individuals into divulging confidential or personal information that may be used for fraudulent purposes.”

Phishing attacks are not the only type of social engineering. Often the scammer gains trust over a long period of time, sometimes weeks or months. This is a very common tactic used on social media platforms like Twitter and Instagram where scammers approach users about crypto projects, giveaways and send malicious links to websites and apps with no verifiable details.

Limited access to your funds.

If you notice you're having limited access to your wallet or crypto exchange account, it is possible you've been compromised by scammers. When you notice this kind of issue, it is best to reach out for support as soon as possible in order to prevent further damage. Connect with an expert, such as a CryptoConsultz consultant, to identify where you might be vulnerable, gain more information about the chances of recovering your funds, and avoid further loss. Always use security precautions such as two-factor authentication to further secure your accounts.

Being asked to pay taxes in order to withdraw funds.

You may have been asked to pay taxes in order to withdraw funds. If you have to pay tax first, then it’s likely a scam. Crypto exchanges or wallets are not responsible for paying taxes for you. Taxes are paid on capital gains, not as a requirement for withdrawals. If you are being asked to pre-pay taxes or have someone offering to pay them for you it’s most likely a scam.

Requests for further investment.

Scammers will eventually reach out to you for further investment into their crypto token or Defi before you’ve been able to liquidate your funds or move them to a private wallet. Most scammers reach out to their victims promising more returns after further investments into their schemes.

Astronomical returns.

Astronomical returns are not a reliable indicator of a scam as we've seen in cases like Shiba Inu and Dogecoin having a meteoric rise of 2,000,000 and 69,000 percent increase at their peaks. While it might be tempting to believe that you can make astronomical returns, this is not true. Scams often promise unrealistic returns with little or no risk involved.

Offers from someone who got you in the scam to “help” you by investing their personal funds.

One of the most common signs of a scam is someone who got you in the scam to “help” you by investing their personal funds. This can happen when a person offers to invest money on your behalf, but they will only do so if you give them access to your own accounts. They may also try to convince you that they have access to even more of your savings than what is actually available.


It is important to remember that scams are always a possibility in the crypto world. However, if you notice any red flags during your research, it is always best to double-check with someone else before making any decisions. Need help evaluating whether an investment is a scam? Contact CryptoConsultz for help.

Already been scammed or hacked?

We’ve got a variety of resources to help you if you’ve been scammed. Our experts can help you determine if you’ve been scammed, help you understand what chances you may have of recovering your funds and provide legal guidance on what steps to take if you’ve been victimized. We’ve got an in-house crypto attorney, experts in security and scams, crypto accounting experts and investigative tools to conduct investigations tailored to your needs. CryptoConsultz is the most reputable consulting firm with years of experience helping victims of hacks, scams and other security vulnerabilities. We are your trusted source of support during this difficult time. Look into our Crypto Incident Analysis where we perform an extensive evaluation of your situation and create a report that you can file with confidence to law enforcement.


Many companies offer to “help” you recover your funds after you’ve been victim to a hack or scam. More often than not, these services are yet another attempt to scam you again. ALWAYS do your research to see if a company is legit. Whether you enlist the help of the CryptoConsultz team or you choose someone else, do your research. Look into it before you take the leap!

We are here to help. Contact us today.

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Remember, it's important to conduct thorough research, read reviews, and consult trusted sources before engaging in any cryptocurrency investment or transaction. If you suspect a crypto scam or have concerns, it's advisable to report it to your local law enforcement authorities and relevant regulatory bodies. If you are a victim of scams, contact Assistance-Refund. No matter how difficult your situation is, you can get your money back.

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