Biggest Crypto Hacks & Scams: What We Can Learn from Them
- Crypto scams are rising in Canada, with fraudsters using schemes like pump-and-dump, phishing, and romance scams to steal from investors.
- To stay safe, always verify sources, avoid unsolicited investment offers, and never share private information.
Cryptocurrency investing offers lucrative opportunities, but it also attracts tech-savvy scammers looking to exploit unsuspecting investors. With the crypto industry remaining largely unregulated, distinguishing between legitimate investments and fraud can be challenging. In 2024 alone, investment scams cost Canadians over $310 million, with cryptocurrency scams accounting for more than half of these losses, according to the Canadian Anti-Fraud Centre (CAFC). Here’s what you need to know about common crypto scams and how to protect yourself.
1. Pump-and-Dump (Rug Pull) Scams
In these schemes, fraudsters hype up a cryptocurrency to drive up its price and then sell off their holdings for a profit. When prices crash, regular investors are left with worthless coins. To avoid this, always research new tokens and be cautious of investments promising guaranteed returns.
2. Giveaway Scams (2-for-1 Scams)
Scammers impersonate celebrities or influencers, claiming they will double any crypto sent to their wallet. These scams often spread on social media. Remember: No legitimate entity will ask you to send crypto with a promise of doubling it.
Also read: Top 5 Most Underrated Cryptos to Watch in 2025
3. Phishing Scams
Fraudsters send fake emails or messages that mimic legitimate crypto exchanges or wallets, tricking users into revealing their passwords or private keys. Always verify URLs and never share sensitive information online.
4. Airdrop Scams
In an airdrop scam, scammers offer free tokens to lure users into connecting their wallets to fraudulent sites. Once access is granted, scammers can drain the wallet. Stick to verified airdrops from trusted crypto projects.
5. Fake Customer Support Scams
Scammers impersonate representatives of crypto exchanges on social media or messaging apps, tricking users into providing login credentials or remote access to their devices. Always seek support from official websites.
6. Crypto Ponzi Schemes (Mining or Staking Pool Scams)
These scams promise high returns from crypto mining or staking but use funds from new investors to pay earlier ones. Once new investors stop joining, the scheme collapses. Be wary of platforms that guarantee unrealistic returns.
7. Romance Scams (Pig Butchering)
Fraudsters build online relationships with victims, eventually convincing them to invest in fraudulent crypto platforms. Always be cautious of online relationships that involve financial requests.
8. Investment Recovery Scams
After a victim loses money in a scam, fraudsters pose as recovery agents, promising to retrieve lost funds—for an upfront fee. Legitimate recovery services don’t require advance payments.
9. Celebrity Impersonation Scams
Scammers use deepfake videos and fake endorsements from well-known figures to promote fraudulent crypto projects. Always verify celebrity endorsements from official sources.
10. Blackmail Scams
Scammers claim they have compromising information and demand cryptocurrency in exchange for silence. If targeted, never respond—report the threat to authorities.
How to Protect Yourself from Crypto Scams
- Be skeptical: Treat unsolicited crypto investment opportunities with caution.
- Verify links and sources: Always check website URLs and emails for authenticity.
- Use official support channels: Never share private information with anyone outside official websites.
- Never send crypto to unknown wallets: Transactions are irreversible—ensure recipients are trustworthy.
- Report scams: Contact the CAFC and local authorities if you suspect fraud.
Final Thoughts
Crypto investments come with risks, including scams and market volatility. Always conduct thorough research before investing and remain vigilant to protect yourself from fraud.
