How to Spot and Avoid Cryptocurrency Phishing Scams
With nearly $600 million stolen in cryptocurrency phishing scams in the first half of 2025, phishing presents a significant danger for digital asset users.
To trick you into revealing your sensitive information, scammers use a wide range of tactics, from fake URLs and cloned sites to crypto email scams, airdrop phishing, and crypto wallet phishing. While the methods are constantly evolving, the good news is that you can protect against their attacks by following the best practices of crypto market security.
In this article, we'll explore what cryptocurrency phishing scams are, the common tactics scammers deploy, the red flags to watch out for, and the practical steps you can take to keep your crypto safe.
What Are Cryptocurrency Phishing Scams?
Cryptocurrency phishing scams are a type of cyber attack where scammers impersonate a legitimate trusted entity—like a crypto exchange, wallet provider, or even a celebrity—to trick you into revealing sensitive information. The goal is to steal your login credentials, private keys, or seed phrase to gain unauthorised access to your funds.
The attack relies on social engineering, where scammers create a sense of urgency, fear, or excitement to manipulate you into acting without thinking. For instance, you might receive an email pretending to be from your crypto exchange, warning that your account has been compromised. The email urges you to click a link to secure your funds, but the link leads to a fake website designed to steal your login credentials.
Common Phishing Types and Tactics
Phishing attacks come in many forms, each designed to exploit user trust in different ways. Here are some of the most common cryptocurrency phishing scams to watch out for:
Fake URLs and Cloned Websites
One of the most common tactics involves creating websites that are nearly identical replicas of legitimate platforms like VALR. Scammers meticulously copy the branding, layout, and user interface to make their fake site look authentic.
The goal is to trick you into entering your login details, which they can then capture. These sites often use look-alike URLs, a technique known as typosquatting. For example, a scammer might register a domain like "va1r.com" (using the number '1' instead of 'l') or use a different ending like ".co" or ".net" to fool users who do not check the address bar carefully.
Crypto Email Scams
As part of a classic phishing method, scammers send emails pretending to be from a trusted source, such as your exchange or wallet provider. These crypto email scams often use urgent and alarming language to provoke an immediate emotional response.
You might see subject lines like, "Immediate Action Required: Claim Your 1.39 BTC Before It's Lost!" or "URGENT: Your Cryptomining Balance is at Risk – Withdraw Now!" This type of cryptocurrency email scam is designed to make you panic and click on a malicious link or download an infected attachment without thinking.
Airdrop Phishing
Airdrop phishing is a sophisticated scam that targets digital asset users' excitement for receiving free tokens.
The attack typically takes place in two steps. First, you receive an unsolicited and unknown token in your wallet, which appears to be a legitimate airdrop. When you check a block explorer, it might even show that the token has value.
Second, when you try to sell or swap this token, the transaction fails, and you are directed to a malicious website to "claim" or "enable" the token. This site then prompts you to sign a malicious transaction or approve unlimited spending, which gives the scammer control to drain all the valuable assets from your wallet.
Crypto Wallet Phishing
These attacks are specifically designed to steal your wallet's private keys or seed phrase.
A common crypto wallet phishing tactic involves creating fake mobile apps that mimic popular wallets or setting up fake support or wallet recovery websites. These sites often instruct you to enter your seed phrase to "re-validate," "synchronise," or "recover" your wallet due to a supposed technical issue.
Once you enter your recovery phrase, the scammers have everything they need to import your wallet and steal your funds.
Phishing Risks and Red Flags to Watch Out For
The primary risk of falling for cryptocurrency phishing scams is the immediate and irreversible loss of your funds. Once a transaction is confirmed on the blockchain, it is almost impossible to recover your assets.
Fortunately, most phishing attempts have clear warning signs. Here are the key red flags to watch out for:
Unsolicited contact: Be wary of unexpected emails, DMs, or messages, especially if they ask you to take urgent action.
A strong sense of urgency or fear: Messages that claim your account is locked, funds are at risk, or you will miss out on a huge reward are classic scam tactics.
Spelling and grammatical errors: Legitimate companies proofread their communications; obvious mistakes are a major red flag.
Suspicious URLs or email addresses: Always hover over links to check the destination URL and verify the sender's email ends in the official domain (e.g., "@valr.com").
Requests for your seed phrase, private keys, or account login details: No legitimate exchange, wallet provider, or support agent will ever ask for your seed phrase, private keys, or login details.
Offers that seem too good to be true: Promises of guaranteed high returns, free money, or exclusive giveaways are almost always scams.
Inconsistent branding or design: Look for slight differences in logos, colours, or website layout compared to the official site you know.
How to Stay Safe Against Cryptocurrency Phishing Scams
Protecting yourself from cryptocurrency phishing scams comes down to a combination of vigilance and security best practices. Here are essential tips to keep your assets safe and avoid crypto scams:
Bookmark the official websites of exchanges and services you use regularly and only access them through your bookmarks.
Always double-check the URL in your browser's address bar before entering login details to ensure it is the correct, secure site.
Enable Two-Factor Authentication (2FA) on all your accounts, using an authenticator app like Google Authenticator instead of SMS for stronger security.
Never, ever share your seed phrase or private keys with anyone or enter them on any website, no matter how legitimate it seems.
Store your seed phrase backup securely offline on paper or steel, not as a digital file, photo, or in a cloud service.
Be highly sceptical of unsolicited offers, giveaways, or airdrops, especially those that require you to connect your wallet to an unknown site.
Hover over links in emails and messages to preview the actual URL before clicking.
Use a separate "burner" wallet with a small amount of funds for interacting with new or untrusted dApps.
Keep your device's operating system, browser, and wallet apps updated to the latest versions to protect against vulnerabilities.
Trust your instincts—if a message or website feels suspicious, close it immediately and do not interact with it.
Only download mobile apps from official sources like the Google Play Store or Apple App Store, and verify the developer.
How VALR Protects Crypto Users
Staying safe from cryptocurrency phishing scams requires constant vigilance, but by recognising the red flags and following security best practices, you can significantly reduce your risk. As a regulated platform licensed by South Africa's Financial Sector Conduct Authority (FSCA) and other regulators, VALR is committed to providing users with a secure and compliant trading environment.
VALR implements multiple layers of security to protect your account and assets. This includes mandatory 2FA for all critical transactions and storing the vast majority of customer assets in institutional-grade, multi-signature cold storage, which is isolated from the internet.
VALR also has strict internal controls in place, meaning no single individual can move customer funds. To help you identify legitimate communication, remember that official VALR emails will only ever come from an address ending in "@valr.com".
Ready to get started on a secure and regulated crypto exchange platform? Create an account on VALR now!
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).
Disclaimer: Views expressed in this article are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.