How to Avoid Crypto Scams: 8 Tips to Keep Your Cryptocurrency Safe From Hackers

Since the launch of Bitcoin in 2009, the crypto market has grown, matured, and expanded to the current size of $3.35 trillion. During these 16 years, industry players have witnessed many trends - from the initial coin offering (ICO) boom and the rise of decentralised finance (DeFi) to institutional investors and governments gaining exposure to 14.20% of the total BTC supply.

However, one thing has stayed the same: scammers are still after crypto investors' money, targeting them with fraudulent schemes to steal their coins. In fact, $834.5 million was lost to digital asset scams in 2024, representing 27.72% of the funds stolen by perpetrators during the year.

But how can you avoid crypto scams in 2025? In this article, we will show you the most common types of digital asset fraud, as well as the tips and security best practices you should follow to protect against them. 

The Most Common Crypto Scams to Watch Out for in 2025

Scammers use a wide range of methods and strategies to defraud victims. The most common techniques of fraudsters in the crypto space include the following:

• Phishing: Ranked as the top on-chain threat in CertiK's Hack3d Web3 Security Report 2024, phishing claimed $1.05 billion from victims last year. During such an attack, the fraudster tries to acquire the target's sensitive information (e.g., account information, wallet secret, private key) by pretending to be a trustworthy entity (e.g., VALR or another reputable crypto exchange). To trick victims, scammers use similar URLs, email addresses, logos, and branding, as well as language and style, as legitimate organisations. Once they acquire the credentials, fraudsters use them to steal crypto investors' funds from their exchange accounts, wallets, or other platforms.

• Impersonation: Impersonation is a technique fraudsters commonly utilise in tandem with phishing to deceive or manipulate their targets. Here, the perpetrator impersonates a well-known person (e.g., a celebrity, a digital asset influencer, or a famous developer) or someone from a reputable organisation to gain the victim's trust. Impersonation can occur online, over the phone, or even in person. Scammers' goal is the same as for phishing: to trick crypto users into revealing sensitive details they can use to drain their coins from their wallets or accounts.

• Fake Wallets: Scammers regularly leverage fake crypto wallets to defraud victims. One common strategy involves leaving fake addresses to wallets pre-loaded with large amounts of cryptocurrencies in public locations and sharing instructions on how to find them on social media. When they find one, victims are asked to deposit digital assets as a processing or withdrawal fee and share the secret phrase or private key to their crypto wallets. After that, perpetrators drain unsuspecting users' wallets and disappear with the deposited coins.

• Fraudulent Investment Schemes: Fraudsters try to lure victims with fraudulent investment schemes. Promising unrealistically large profits in very short periods of time, they ask investors to deposit assets to their addresses and, in return, they will send a greater amount of coins back to users' wallets. Initially, scammers even send back a small amount of tokens to victims' wallets to prove their investment schemes are legit. However, the next time, they ask for larger deposits, and once those are transferred to the address of fraudsters, they will simply leave with investors' assets.

How to Avoid Crypto Scams: 8 Tips to Protect Your Assets Against Fraud

The good news is that you can protect your digital assets against fraud by following the best practices of cryptocurrency wallet security. We have collected the top tips and tricks on how to avoid crypto scams below:

1. Always do your own due diligence and research every platform, wallet, or other cryptocurrency service before using it.

2. Avoid unsolicited offers and "guaranteed returns - if something seems too good to be true, it probably is.

3. Use advanced security features, such as two-factor authentication (2FA) and multi-signature (multi-sig) wallets, to maximise the safety of your assets.

4. Monitor wallet and exchange account activity regularly to identify and take action against suspicious and illicit activity.

5. Learn the basics about crypto and keep up with the latest news and trends. Useful resources here include VALR's blog and reputable cryptocurrency media outlets like CoinDesk and Cointelegraph.

6. Maintain a virus- and malware-free device with regular scans.

7. Avoid using shared, public, or insecure devices to access your crypto wallet or exchange accounts.

8. Report suspicious activity to the service provider. Send a message to help@valr.com if you notice irregularities with your VALR account, and our support team will help you find a solution as soon as possible.

Remain vigilant and follow the above rules to avoid cryptocurrency scams and remain safe in the digital asset space. If you are a VALR user, you can find more tips and tricks here and on this support page.

Frequently Asked Questions (FAQ)

• How do I invest in crypto without getting scammed?

  To avoid getting scammed as a crypto investor, you should follow the security best practices and tips we have listed in this article. Remember to always remain vigilant and do your own research before interacting with any wallets, exchanges, websites, or applications.

• How do you spot a cryptocurrency scammer?

  In most cases, cryptocurrency scammers promise you the world but fail to deliver. They reach out with unsolicited, fraudulent investment schemes offering unrealistic returns, pressuring you to act quickly. Some fraudsters are real professionals - they excel at impersonating famous individuals or reputable companies.

  However, when you do your own research, you can identify that there's often little to no verifiable information about their claims, team, or project. Their websites or social media profiles are typically filled with vague language, grammatical errors, or exaggerated testimonials. Their promises of guaranteed returns contradict the inherent risks of cryptocurrency investments, and the lack of transparency becomes apparent upon closer inspection.

  By staying vigilant, cross-checking information, and only trusting well-established platforms, you can protect yourself from falling victim to their scams.

• How do I get my money back from a crypto scammer?

  In most cases, once a crypto scammer has stolen your funds, you won't be able to get your money back from them. However, that doesn't mean that there's no chance for recovery. The best you can do is report the incident to authorities and the service provider that can take the necessary action against the perpetrators and potentially reclaim your lost assets.

• How to spot a fake cryptocurrency wallet?

  You can spot a fake cryptocurrency wallet by identifying red flags, such as applications from unofficial sources and with only a few downloads and bad reviews. These wallets are often sent as third-party links to crypto investors or are made available on copycat websites resembling legitimate providers. You should do your own research before downloading or using a crypto wallet. Always verify the URL of the website you are at (e.g., valr.com for VALR), use trusted sources (e.g., App Store, Google Play), and check for reviews and feedback online.

Risk Disclosure

Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate.

VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).