24 Ways Crypto Investors Are Being Hunted by Cybercriminals—Wallets Drained at Record Speed

  news.bitcoin.com 1 h

Crypto scams are draining wallets fast, using AI fraud, fake mining, and Ponzi schemes—so advanced that regulators struggle to keep up.

24 Brutal Crypto Scams Hunting Investors — The Tactics Draining Wallets Fast

Cryptocurrency scams continue to pose a growing threat to investors, with fraudsters using increasingly sophisticated tactics to steal funds and personal information. To help the public recognize and avoid these schemes, the California Department of Financial Protection and Innovation (DFPI) has updated its glossary of 24 different types of cryptocurrency scams, highlighting the most common ways fraudsters deceive victims. The list covers a variety of scams, from fake investment opportunities to identity theft and social engineering tactics.

DFPI warns about several types of investment fraud that prey on both new and experienced investors. These include Advance Fee Scams, where victims pay upfront for services or promised returns that never materialize, and Affinity Scams, which exploit trust within specific cultural or religious communities. AI Investment Scams falsely claim to use artificial intelligence for high returns, while Asset Recovery Scams charge victims fees to recover lost funds but never follow through. Bait and Switch Scams mislead buyers by advertising one product but delivering something different or worthless, and Bitcoin Mining Scams deceive victims into investing in fake mining operations.

Fraudsters also use Crypto Blackmail Scams, where they threaten to release personal information unless paid in crypto, and Crypto Gaming Scams, which involve fake play-to-earn games designed to steal users’ funds. Other schemes include Crypto Job Scams, which impersonate recruiters to steal assets, and Crypto Wallet Drainer Attacks, where malicious websites trick users into exposing their wallets. Additionally, Fraudulent Trading Platforms appear legitimate but are designed to steal deposits. Hacking is also a major threat, with scammers exploiting computer systems to steal sensitive financial information.

Other scams involve social engineering, deception, and identity fraud. High-Yield Investment Programs (HYIP) operate as Ponzi schemes, offering unrealistic returns before disappearing with investors’ funds. Identity Theft allows scammers to use stolen personal information for financial fraud, while Imposter Scams involve criminals posing as government agencies, businesses, or celebrities. Investment Group Scams manipulate victims through private chat groups that promote fraudulent investments.

Liquidity Mining/Yield Farming Scams lure users into fake decentralized finance (DeFi) projects, and Crypto Giveaway/Airdrop Scams impersonate public figures or companies to steal funds. Pig Butchering Scams involve long-term social manipulation before introducing victims to fake investments.

Cybercriminals also use Ransomware, which encrypts data and demands crypto payments, and Romance or Social Media Scams, where fraudsters establish fake relationships to manipulate victims. Rug Pull Scams occur when developers promote and then abandon a crypto project after securing investments. Scammers also push Signal Selling Scams, which offer fake trading insights, and Tech Support Scams, which trick victims into paying for unnecessary services.

DFPI advises consumers to stay vigilant, verify investment opportunities, and be cautious of anything that sounds too good to be true. With scams becoming more advanced, staying informed is the best defense against financial fraud.

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