The promise of cryptocurrency and AI innovation is undeniable, but so are the risks. As scams evolve, unsuspecting investors continue to fall victim to deceptive schemes. In 2024 alone, the California Department of Financial Protection and Innovation (DFPI) received 2,668 complaints, exposing new fraudulent tactics targeting the crypto community.

Here’s a closer look at the seven new crypto scams—and how to protect yourself.

The 7 New Crypto Scams

Phantom Bitcoin Mining Ventures

The dream of mining Bitcoin and reaping high rewards fuels many investment decisions. Scammers exploit this desire by promoting fake cloud mining operations. They craft professional-looking websites, complete with fabricated mining statistics, testimonials, and even real-time dashboards displaying “earnings.” Victims are convinced to invest in mining contracts, often with a promise of daily or weekly returns.

However, these operations do not own any real mining hardware. Once a sufficient amount of money is collected, the website shuts down, and the operators disappear. Some schemes may even allow small initial withdrawals to build trust before executing a final exit scam.

How to spot the scam:

• Be skeptical of mining platforms that guarantee profits.
• Verify if the mining operation is publicly listed and has a known data center.
• Search for independent reviews and complaints before investing.

Deceptive Crypto Gaming Platforms

The rise of play-to-earn (P2E) games has created a breeding ground for scams. Fraudulent gaming platforms lure players in with promises of earning crypto through gameplay. They often require users to deposit funds to buy in-game assets, NFTs, or tokens.

However, these games are programmed with malicious intent. Some operate like Ponzi schemes, rewarding early adopters with new investments from later players. Others use smart contracts that, when interacted with, grant the scammers access to users’ wallets, allowing them to drain funds without consent.

How to protect yourself:

• Avoid games that require large upfront investments.
• Verify whether the game’s smart contracts are audited by a reputable firm.
• Be cautious of games that promise overly high returns in a short period.

Illusory Airdrops and Giveaways

Fake airdrops and giveaways are among the most widespread scams. Fraudsters impersonate major crypto projects, influencers, or exchanges, promising free tokens in exchange for wallet connectivity or small initial deposits.

Victims often receive fake messages through social media or phishing emails directing them to a replica website. Once they link their wallet, the scammer exploits smart contract loopholes to siphon funds.

How to stay safe:

• Never connect your wallet to unknown platforms claiming to distribute free tokens.
• Verify airdrop announcements from official sources such as the project’s main website or social media pages.
• Be cautious of any “send-to-receive” giveaway schemes.

Fraudulent Employment Offers in Crypto

Fake job offers in the crypto space are becoming increasingly sophisticated. Scammers post enticing job listings on LinkedIn, Telegram, or even through direct emails, advertising positions such as “Crypto Analyst,” “Blockchain Developer,” or “Digital Asset Manager.”

Once applicants show interest, they are asked to make a small “security deposit” or purchase a company-approved crypto wallet as part of the hiring process. Some scams involve elaborate interview processes to appear legitimate. Others seek to extract personal information, including passport details, for identity theft.

Signs of a fake job offer:

• The employer asks for upfront payment or crypto deposits.
• The company has no verifiable online presence or official website.
• The job listing appears too good to be true, offering exorbitant salaries with minimal qualifications required.

Bogus Investment Collectives

Scammers create private investment groups on WhatsApp, Telegram, or Discord, where they pose as experienced traders or financial experts. These groups often lure investors with fabricated success stories and fake testimonials.

Once enough people have joined, the scammers initiate fraudulent trading schemes or “VIP investment opportunities” that require large deposits. Early withdrawals may be allowed to establish trust, but eventually, the scammers disappear with the bulk of the funds.

Avoid falling victim by:

• Checking if the investment group is affiliated with a licensed financial institution.
• Watching for red flags like pressure tactics and unrealistic return guarantees.
• Avoiding groups that lack transparency about their investment strategies.

Deceptive AI Investment Schemes

With the rise of artificial intelligence, scammers now promote AI-driven crypto trading bots and investment platforms that promise absurdly high returns. These platforms claim their AI algorithms predict market movements with near-perfect accuracy, enticing users to deposit funds.

The reality is that these bots either do not exist or perform poorly. In most cases, they operate as Ponzi schemes, using new investors’ funds to pay out earlier participants before collapsing.

How to verify legitimacy:

• Look for evidence of audited trading algorithms or partnerships with credible financial institutions.
• Be wary of platforms that do not disclose their trading strategies.
• Avoid services that require an upfront payment before accessing the AI tool.

 

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Crypto Wallet Drainer Attacks

One of the most devastating scams is the wallet drainer attack. Victims unknowingly approve a malicious smart contract, allowing scammers to withdraw funds without needing further permissions.

These attacks often happen through:

• Fake NFT minting websites that require users to sign malicious transactions.
• Malicious DeFi platforms that trick users into approving unlimited token transfers.
• Compromised browser extensions that silently authorize fund withdrawals.

 

Protect yourself by:

• Using hardware wallets and revoking unnecessary approvals.
• Avoiding connections to unknown DeFi platforms without proper audits.
• Checking wallet permissions regularly using tools like Revoke.cash.

How to Protect Yourself from Crypto and AI Scams

While the digital revolution offers remarkable opportunities, it also demands caution. Here’s how you can stay safe:

Verify Before You Trust

• Always research platforms, projects, and individuals before engaging.
• Look for official websites, verified social media accounts, and regulatory registrations.
• If an investment opportunity lacks transparency, walk away.

Protect Your Private Keys and Wallet Information

• Never share your private keys or seed phrases with anyone.
• Use hardware wallets for long-term storage of valuable assets.
• Be wary of sites asking you to connect your wallet; always double-check URLs.

Be Skeptical of High Returns with Low Risk

• If it sounds too good to be true, it probably is.
• Avoid platforms that guarantee profits—the crypto market is volatile by nature.
• Verify claims with independent sources before investing.

Recognize Common Scam Tactics

• Scammers create a sense of urgency to pressure victims into hasty decisions.
• Fake influencers and endorsements are often used to build credibility.
• Phishing emails and fake websites mimic legitimate platforms.

Use Secure Communication Channels

• Be cautious when joining crypto-related Telegram and Discord groups.
• Never click on random links or download unknown software.
• Enable two-factor authentication (2FA) on all crypto-related accounts.

Report Suspicious Activity

• If you encounter a scam, report it to financial regulators or consumer protection agencies.
• Share your experience in online forums to warn others.
• Stay updated with alerts from regulatory bodies like the DFPI.

The Future of Crypto and AI Security

As technology evolves, so do the tactics of scammers. Regulatory agencies worldwide are tightening controls, but personal vigilance remains the strongest defense. The key to safe navigation in this digital era lies in education, awareness, and skepticism.

While the promise of decentralized finance and artificial intelligence is vast, so too are the pitfalls. By staying informed and exercising caution, you can harness the potential of these innovations without falling prey to deception.

KEYRING PRO: Strengthening Your Crypto Security

As cryptocurrency scams grow more sophisticated, safeguarding your digital assets requires more than just vigilance—it demands the right tools. KEYRING PRO Wallet is designed to put security and control back in the hands of users, ensuring safe and seamless transactions while minimizing exposure to potential threats.

How KEYRING PRO Protects You from Crypto Scams

• Full Control Over Your Private Keys: Unlike custodial wallets or exchanges that hold assets on your behalf, KEYRING PRO is a non-custodial wallet, meaning you alone have access to your funds. This eliminates the risk of exchange hacks or third-party mismanagement.

• Passkey Authentication for Advanced Security: KEYRING PRO integrates Passkey authentication, a cutting-edge, passwordless login method that eliminates the need to memorize seed phrases or enter passwords that could be phished. With this feature, users can securely access their wallets without worrying about credential theft.

• Biometric Fingerprint Authentication: Security should never come at the expense of convenience. With fingerprint authentication, KEYRING PRO ensures that only you can unlock and authorize transactions, even if your device is lost or stolen.

• Safe Interaction with DeFi & dApps: Malicious smart contracts often trick users into granting unauthorized access to their funds. KEYRING PRO provides clear visibility into contract permissions before approval, helping users avoid risky transactions. The wallet also supports multi-layer authentication for enhanced protection when interacting with DeFi platforms and Web3 applications.

• Fraud Detection & Suspicious Contract Warnings: KEYRING PRO integrates security checks that flag suspicious addresses and contracts requesting excessive permissions, preventing users from falling victim to phishing websites or fraudulent tokens.

• Optimized Gas Fees & Secure Transactions: Some scams exploit network congestion, tricking users into overpaying fees or using fake networks where transactions get “stuck” unless additional payments are made. KEYRING PRO optimizes gas fees, ensuring users always pay the correct amount without falling prey to such tactics.

Security Starts with You

No matter how advanced the technology, staying informed and cautious is your first line of defense. By combining strong security practices with a trusted solution like KEYRING PRO, you can navigate the crypto space with confidence—seizing opportunities while staying protected from evolving threats.