Cryptocurrency has shifted from niche interest to mainstream investment. Big names like Tesla and Square have held Bitcoin on their balance sheets, and major banks are exploring ways to roll out crypto services to clients. Confidence in digital currencies is growing, and everyday investors now have easier access than ever before.
But where money flows, scams follow. Scam artists and professional fraudsters are using this momentum to target new investors. In the past year alone, people lost almost £200 million to scams in the UK, with nearly 10,000 victims affected. Losses have grown sharply compared with previous years, showing just how quickly these crimes are increasing.
Many consumers still lack understanding about how cryptocurrency works or how to keep their assets secure. Due to transactions being irreversible and generally lacking government protection, crypto scams remain especially attractive to criminals.
In this guide, Wealth Recovery Solicitors highlight some of the most common crypto scams to be aware of. If you believe you may have been targeted, or know someone who has, the following information will help you understand the risks and spot the warning signs.
Why Cryptocurrency Attracts Scammers
Cryptocurrency offers freedom, flexibility, and the potential for high returns, but that can also attract scammers.
Unlike traditional banking, crypto runs in a decentralised and mostly anonymous system. With far less regulation than mainstream financial markets, it’s easier for fraudsters to launch fake platforms or pose as legitimate businesses without being spotted.
There’s also the issue of irreversible transactions. Once money leaves your wallet, you can’t request it back. If it’s gone to a scammer, recovering it is extremely difficult without expert help.
That doesn’t mean every crypto investment is a scam. Many people buy, hold, and trade digital assets safely. The key is knowing how scams usually work and learning how to spot the red flags before you hand over your money.
Crypto scam format: How they typically work
Most crypto scams have similar patterns. Scammers often use phishing emails, fake websites, or impersonation tactics to steal wallet details and login credentials. Others create platforms that look legitimate but are set up to take deposits, often using high-pressure tactics to push people into acting quickly.
A common red flag is that payment is only accepted in cryptocurrency, making any transfer almost impossible to reverse. Promises of guaranteed profits or unusually high returns are another tell-tale sign. Even if the methods vary, the underlying goal is always the same: to gain your trust, take your money, and disappear.
The most common crypto scam types to be aware of
Scammers are constantly finding new ways to target investors, but certain schemes appear again and again. Here are the most common types of crypto scams to watch out for.
Fake investment or business opportunity
Fake investment scams are a type of internet fraud. They usually begin when someone contacts you with a potential business or investment opportunity and promises to make you rich. The offer often includes claims of guaranteed returns or suggestions that your money could double or triple in a very short time.
To build trust, scammers may use fake testimonials or even false celebrity endorsements. Some manufacture convincing dashboards that appear to show your investment growing, encouraging you to deposit more. In reality, the account dashboard is fabricated making the funds inaccessible as no real trading is happening – it is a simulation to build trust and encourage victims to deposit more money.
Victims may be allowed to withdraw a small amount at first, but you’re then asked to pay additional “fees” before accessing larger sums, which never arrive.
Scammers also tend to use high-pressure tactics, such as being told there are only limited spots available or that you need to act immediately to avoid missing out. Once you’ve transferred funds, they’re almost always impossible to recover without professional help.
Crypto app scams
Some scammers create fake crypto apps that look like real exchanges or wallets. They often use slick branding and fake reviews to appear trustworthy, and you can even find them in the official Android and iOS app stores.
Once you’ve installed them, these apps may ask for your private keys or memorable phrases straight away. Others send urgent push notifications about “security updates” or “account issues,” pressuring you to share details that give scammers full access to your wallet. Because the apps look so convincing, it’s easy to fall for them until the money is gone.
Phishing scams
Phishing scams trick you into handing over login details, recovery phrases, or other sensitive information. They’re usually emails, texts, or calls that appear to be from a trusted source, such as your bank or a crypto exchange.
The messages typically contain links to fake websites that look almost identical to the real thing. Once you enter your details, scammers can access your funds. Some will also create urgency by claiming there’s a security issue that needs immediate action.
Celebrity impersonation scams
Some scams use celebrities to make a fraudulent scheme appear trustworthy. They may use AI-generated deepfakes (video or audio) to make it appear as though someone well-known is endorsing an investment.
Usually, you’ll see or hear a well-known person (or someone who looks and sounds like them) promoting a crypto platform or “once in a lifetime” deal. The ad may include a short video, voice message, or social media post implying that this celebrity is promoting the “investment opportunity”. The goal is to leverage their reputation to lower your guard.
Recent examples include:
- Martin Lewis – The personal finance expert, has repeatedly been used to promote scam investment opportunities. These deepfakes often appear across social media. Scammers have even fabricated adverts showing Martin Lewis appearing on Good Morning Britain, falsely promoting fraudulent investment schemes or crypto platforms.
Elon Musk As a vocal figure in the crypto world, Elon Musk has been linked to fraudulent trading platforms through AI-generated videos and interviews.
- Prince William was recently featured in deepfake ads promoting a crypto trading scheme called “Immediate Edge.” The campaign falsely claimed royal support to attract investors.
Romance scams
In a romance scam, fraudsters pretend to form a genuine relationship with you online. They often use stolen photos and fake identities, building trust over weeks or even months. The conversations can feel personal and convincing, with scammers carefully tailoring their stories to win your confidence.
Then, they introduce money into the relationship. This might be framed as a personal emergency, such as needing help with medical bills or travel costs, or as an investment opportunity that they claim you can share together. Increasingly, these scams involve requests for cryptocurrency transfers, which are harder to trace and reverse.
Because the connection feels genuine, victims may find it difficult to believe they’re being deceived, even when the requests for money escalate. By the time the scam is uncovered, you might have already lost significant amounts of money.
Social media scams
Social media has become one of the most common entry points for crypto fraud. Scammers use platforms like Facebook, Instagram, X, and dating apps to make first contact, often posing as trusted individuals, support staff or even new friends.
From there, social media can act as a gateway to almost any other type of scam. A conversation that begins casually in a chat box might later turn into a romance scam, a fake investment opportunity, or a phishing attempt. Fraudsters take advantage of the trust people place in familiar platforms and the speed at which content spreads.
In many cases, you’ll be encouraged to send cryptocurrency directly to a wallet address shared through the platform or persuaded to click links to fraudulent sites and apps. Because communication feels personal and immediate, these scams can be particularly persuasive and damaging.
Ponzi schemes
A Ponzi scheme is a fraud where the money you invest isn’t actually used to generate profits. Instead, it’s used to pay earlier investors, creating the illusion of success.
At first, you might see small, timely returns, which builds trust and encourages you to invest more. The scheme is often dressed up as a fund or trading strategy that promises steady, high returns with little risk. But once fewer new investors join, the money runs out and the scheme collapses, leaving most people with nothing.
In crypto, Ponzi schemes often claim to use special algorithms or funds to deliver guaranteed profits. In reality, no trading takes place. Your deposits are simply recycled to pay others, while the organisers pocket as much as they can before disappearing.
Fake ICOs
A fake Initial Coin Offering (ICO) is when fraudsters launch a token sale for a project that doesn’t really exist. You’re told you’re getting in early on a new cryptocurrency, DeFi platform or NFT collection that will rise sharply in value once it is released to the public.
These scams are often heavily promoted on Telegram, Reddit or Twitter, with fake communities created to make the project look active and legitimate. The marketing usually promises high returns or future utility for the token, pushing you to invest quickly before the “opportunity” disappears.
The truth is, there’s no genuine product behind the hype. In some cases, the smart contracts contain hidden backdoors that let the developers drain all the funds. Once the money is gone, so are the organisers, leaving you with worthless tokens and no way to recover your investment.
Pump and dump schemes
In a pump and dump scam, a group of organisers buys a low-value crypto token and uses marketing to drive demand and push the price higher. You see the value climb quickly and are encouraged to invest. Once the price peaks, the organisers sell off their holdings, and the value crashes, leaving you with tokens that are worth very little.
Here’s how it usually works:
- The token is promoted heavily on social media, forums, Telegram or Discord with exaggerated claims or “insider tips.”
- Organisers coordinate large buys or trading activity to make the market look active.
- You’re drawn in by fear of missing out as more people jump in and the price soars.
- At the peak, the organisers sell their coins, causing the price to collapse.
- With no new buyers, the market dries up, and investors are left unable to sell at a meaningful price.
Exit scams
Exit scams happen when the developers of a new crypto project suddenly disappear with investors’ money. They’re often called “rug pulls”. You might be encouraged to buy into a token that looks promising, with slick marketing and an active online community. But once enough people have invested, the creators drain the liquidity pool or treasury wallet and vanish.
When this happens, the token’s value collapses instantly. You’re left holding coins that can’t be sold, while the organisers walk away with the funds. These scams can unfold in weeks, days or even hours after a token’s launch, making them one of the riskiest traps for new investors.
Have you been targeted by a crypto scam? You’re not alone
Falling victim to a crypto scam can be overwhelming, but you don’t have to face it alone. At Wealth Recovery Solicitors, we’ve helped thousands of clients recover funds lost to fraud, with over £50,000,000 recovered in the past three years.
We’re an SRA-regulated firm, trusted by clients across the UK, and we pride ourselves on providing ethical, transparent support. Our team is available around the clock to offer expert guidance and reassurance when you need it most. And with our no-win, no-fee service, you won’t pay a penny unless we recover your money.
If you think you’ve been targeted by a crypto scam, or know someone who has, we’re here to help. Get in touch to speak to one of our specialists and find out how we can support you.