Know Your Scam: A Definitive Guide to Crypto’s Most Prevalent Scams

Know Your Scam: A Definitive Guide to Crypto’s Most Prevalent Scams
A Definitive Guide to Crypto's Most Prevalent Scams. Image source: Pixabay

It might be a Telegram message from a supposed “Binance employee,” an urgent phone call from a distant relative needing money, or a charming swindler professing their love for a costly price. Scams come in all shapes and sizes, but they all have one common goal: stealing your money.

A high-pressure text demanding money or a phony Bitcoin giveaway can be enough to manipulate users and gain their trust, especially ones caught out in a vulnerable moment. We share this information to ensure our users are equipped with the latest security tips and advice because ultimately, you play the largest role in protecting your funds.

An Introduction to 11 Types of Scams

Below, our risk team has identified and grouped the most popular crypto scams into 12 categories, along with a summary of how each one tends to work.

  1. Investment scam

Investment scams involve a fraudster promising high returns if you invest your money through a “highly recommended” website, app, or crypto broker. The criminal may even claim to be an expert who will multiply your funds tenfold.


  1. Employment scam

The job posting may look real. The income is well above the industry average. However, there’s a catch: Employment scammers will send out a rewarding job listing that requires applicants to pay a deposit fee if they want the job.


  1. Impersonating an authority figure

Impersonator scammers will attempt to gain your trust by posing as someone important, such as a police officer, a government official, or someone from the tax bureau.


  1. Impersonating Binance employees

Impersonating a Binance Support employee is, unfortunately, a popular attack vector for crypto fraudsters. Scammers often attempt to manipulate users by exploiting the trust our company has established in the space over the years.


Note that Binance employees will never contact you to ask for sensitive information such as your login credentials and 2FA codes. If you receive a message from someone claiming to work for Binance and asking for sensitive information, block the contact and file a report to Binance Support immediately.


  1. Romance scams

A romance scam involves a love interest attempting to start an online relationship with you in the hope of stealing your money. These scams can sometimes take years to develop, as the swindler will start by requesting small loans before escalating to your entire life savings.


  1. Fake giveaway

Scammers will invite you into a Telegram group or Discord server to participate in a bogus crypto giveaway or airdrop. The scammer will typically ask for a deposit fee, or they’ll attempt to trick you into revealing sensitive information in exchange for your “winnings.”


  1. Ponzi scheme

Ponzi schemes are a type of scam that pays early investors with funds and commissions collected from new investors. There is no real investment. The fraudster essentially takes money from one investor to pay the other investor. People in a Ponzi scheme are often encouraged to invite their friends and family to join.


  1. Fake shopping site

Fake shopping sites are designed to mimic a legitimate e-commerce website, going as far as allowing users to sign up as a merchant or a customer. The fake site may entice you to buy their goods using prices significantly lower than the average market rate. The fake site, however, will not be willing to offer delivery or will send you worthless items instead of the goods listed.


  1. Money transfer fraud

Money transfer fraud can occur in two different scenarios.

First, as an innocent peer-to-peer transaction. The scammer sends money to the victim, who then transfers the equivalent amount of crypto back. This would be considered a normal P2P transaction if it ended here. The scammer, after receiving their crypto, will issue a chargeback or cancel the bank transfer.


The other scenario involves a scammer using fake receipts to claim they sent money to your bank account. The scammer will then demand you send back the funds in crypto. Victims will believe the receipt is real and withdraw crypto to the scammer’s address.


  1. Acquaintance fraud

Not all scammers are strangers. The scammer could be a relative, a close friend, or an acquaintance introduced by your friend. Scams can and often do occur in familiar circumstances.


  1. Rug pulls

In the crypto industry, a rug pull is when a crypto project team raises investor money before suddenly abandoning the project and removing all its liquidity. The rug pull typically happens when the investor hype is at its peak.



We hope users can use this knowledge to make better decisions when navigating the crypto ecosystem. If you believe you’re currently the target of a scammer — even a sliver of doubt — stop responding, stop any pending transfers, and file a report to Binance Support immediately. We’ll do our best to provide assistance based on the evidence and materials you provide.