As cryptocurrency adoption grows, so does the sophistication of fraud schemes targeting investors. Here are the top five scam tactics we encountered in 2024.
1. Fake Investment Platforms
Professionally designed websites mimicking legitimate exchanges, complete with fake trading dashboards showing fabricated profits.
2. Romance Scams (Pig Butchering)
Long-term relationship building followed by introduction to fraudulent investment platforms. Losses average $100,000+ per victim.
3. Rug Pulls
DeFi projects that attract significant investment before the developers drain the liquidity pool and disappear.
4. Phishing Attacks
Fake websites and emails mimicking legitimate exchanges to steal login credentials and drain wallets.
5. NFT Fraud
Fake NFT projects, wash trading, and rug pulls in the NFT space have cost investors billions in recent years.