Cryptocurrency scams are widespread due to the decentralised and largely unregulated nature of the market. Common types include phishing scams, where attackers trick users into revealing private keys or login details through fake websites or emails. These scams often mimic legitimate exchanges or wallets.

Another type is the Ponzi or pyramid scheme, which promises high returns with little risk. Early investors are paid with the money from new investors, but the scheme eventually collapses when new funds run dry. Rug pulls are also common in decentralised finance (DeFi), where developers promote a new token or project, attract investment, and then suddenly withdraw all funds and disappear.

Impersonation scams involve fraudsters posing as celebrities, influencers, or support teams, offering fake giveaways or support services. Victims are often asked to send crypto in exchange for larger rewards that never come. Investment scams lure users with fake trading platforms or mining schemes promising guaranteed profits, only to steal the deposits.

Pump and dump schemes involve artificially inflating a coin’s price through hype, then selling off once it peaks. To protect themselves, users should verify sources, avoid unrealistic promises, use secure wallets, and research thoroughly before engaging with new platforms or tokens.