Top 10 Crypto Scams to Avoid in the Bull Run 2025

Top 10 Crypto Scams to Avoid in the Bull Run 2025

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    Top 10 Crypto Scams to Avoid in the Bull Run 2025

    Discover the top cryptocurrency scams thriving in the current 2024 bull markets and learn how to protect your assets effectively. This guide provides essential insights and strategies to help you navigate the crypto world safely and securely.

    The crypto market has leaped into a new bull run since November 2024, when Donald Trump won the US presidential campaign and was lauded for his pro-crypto stance. This optimistic environment propelled Bitcoin to a staggering new all-time high of over $108,000 in December 2024. With an altcoin season expected imminently, crypto prices are set to soar higher, and the potential for high returns is attracting both new and seasoned investors. 

     

    During a crypto bull run, the opportunities can be massive, but so are the risks. As market excitement grows, scammers are quick to take advantage, so it's essential to stay sharp and well-informed to avoid falling into traps. Understanding the landscape of crypto scams is essential for effective protection. 

     

    In 2024, crypto-related hacks and scams resulted in over $3 billion in losses, as reported by blockchain security firm PeckShield. Hacks accounted for more than 70% ($2.15 billion) of these illicit activities, while scams comprised 30% ($834.5 million). Despite a 15% increase in total losses compared to 2023, the number of incidents and the amount stolen decreased from the peak levels seen in 2022, thanks to stricter regulatory crackdowns and improved security measures. 

     

    Crypto security annual report | Source: X

     

    Decentralized finance (DeFi) platforms were the primary targets, with Chainalysis estimating that $2.2 billion worth of crypto was stolen, predominantly from staking tokens and stablecoins. Phishing remained the most costly attack vector, with CertiK reporting that bad actors stole over $1 billion through 296 phishing incidents. Looking ahead to 2025, experts warn that the advancement of AI could enable scammers and hackers to develop more sophisticated and evolving tactics, posing new challenges for crypto users as the industry continues to grow with increasing institutional adoption and regulatory acceptance.

     

    With Bitcoin forecasts expecting higher highs in 2025, the risk of falling victim to these scams intensifies. Let’s explore the top crypto scams you need to watch out for and how to stay safe.

     

    1. Pump-and-Dump Scams

    Pump-and-dump schemes involve artificially inflating the price of a low-market-cap coin through false or misleading statements. Once the price peaks, scammers sell their holdings, causing the price to crash and leaving other investors with losses.

     

    A teenage boy in California orchestrated a pump and dump scam by creating and rapidly selling his own memecoin, Gen Z Quant, on November 19, 2024, earning over $50,000 in less than ten minutes. Initially dismissing his claims, his father, Adam Biesk, realized the scam's reality when angry traders flooded their family with abusive messages and began doxing them online after the coin's price plummeted post-dump. 

     

    The incident, facilitated by the memecoin launchpad platform Pump.Fun, highlights the vulnerabilities and ethical concerns within the unregulated memecoin market, where easy coin creation and lack of oversight enable such manipulative practices. Despite the backlash and legal ambiguities surrounding rug pulls, the teenager continued to launch additional coins, underscoring the need for clearer regulations and better protections for crypto investors in an increasingly immature and exploitative crypto landscape.

     

    Red Flags of a Pump-and-Dump Scheme

    • Sudden price spikes with no clear news or development.

    • Aggressive promotion on social media and forums.

    • Lack of transparency about the project's team or roadmap.

    How to Protect Yourself From Pump-and-Dump Scams

    • Research Thoroughly: Investigate the project’s fundamentals, team, and use cases before investing.

    • Be Skeptical of Hype: If a coin is being heavily promoted without substantial information, proceed with caution.

    • Diversify Investments: Spread your investments across different assets to minimize risk.

    2. Fake ICOs & Token Sales

    Initial Coin Offerings (ICOs) are legitimate fundraising methods for new crypto projects. However, scammers create fake ICOs to lure investors and steal their money.

     

    In November 2024, blockchain investigator ZachXBT uncovered a sophisticated $3.5 million scam in which scammers hacked high-profile social media accounts, including those of McDonald’s, Usher, and Wiz Khalifa, to promote fake memecoins on the Pump.fun platform. Beginning in August 2024, the attackers took over these prominent X and Instagram accounts, advertising bogus tokens like GRIMACE, SCHRADER, and USHER, which led unsuspecting investors to purchase worthless cryptocurrencies. 

     

    The proceeds from these fraudulent sales were laundered through anonymous wallets and casinos, enabling the criminals to quickly amass significant funds. This coordinated series of pump-and-dump schemes highlights the severe vulnerabilities in social media security and the challenges in preventing such large-scale token sale scams. With social media platforms struggling to contain the damage, ZachXBT has promised to reveal the identities of those responsible for these high-profile account takeovers and fraudulent activities.

     

    Fake Token Case Study: Squid Game-Inspired Scams

    The popular TV series “Squid Game” inspired crypto scams, including the launch of fake SQUID tokens. In October 2024, the SQUID token surged by 40,000% within days before executing a rug pull, leaving investors with worthless assets. This scam exploited the show's popularity to gain traction quickly, highlighting the need for thorough research before investing in meme-based tokens.

     

    How to Identify Fake ICOs and Token Sales

    • Unrealistic promises of high returns.

    • Anonymous or unverifiable team members.

    • Lack of a clear whitepaper or project roadmap.

    How to Protect Yourself From Fake Token Sale and ICO Scams

    • Verify the Team: Check the backgrounds and reputations of the project’s founders and developers.

    • Review the Whitepaper: A legitimate project will have a detailed whitepaper outlining its goals and technology.

    • Use Reputable Platforms: Participate in ICOs hosted on well-known and trusted platforms.

    3. Phishing Attacks

    Phishing attacks trick you into revealing sensitive information like private keys, passwords, or seed phrases by masquerading as legitimate entities. 

     

    The FBI’s Internet Crime Complaint Center reported 69,000 crypto-related phishing attacks, with USDT being the most targeted asset, losing $112 million to such schemes. Ethereum emerged as the leading platform for these fraudulent activities, responsible for 75% of attack incidents, followed by Polygon at 18%. High-value attacks exceeding $1 million occurred approximately every twelve days in 2023, highlighting the persistent and escalating threat of crypto fraud. Among the various types of phishing, token transfer attacks proved particularly effective, achieving a 62% success rate, while approval phishing tactics created long-term vulnerabilities for victims, further exacerbating the impact of these cybercrimes.

     

    In early January 2025, Virtuals Protocol, an AI agent platform, had its Discord server compromised due to a private key breach involving a moderator, resulting in the posting of fake Google links that impersonated the platform's website. This security incident occurred shortly after the team resolved a critical bug in an audited contract identified by a researcher. 

     

    Source: Cointelegraph

     

    Additionally, cybersecurity firm Scam Sniffer detected three malicious phishing links on Google Search posing as Virtuals Protocol, urging users to verify official links to avoid falling victim to increasingly sophisticated phishing scams targeting crypto users. This breach underscores the broader trend highlighted in a CertiK report, which identified phishing scams and private key compromises as the top security threats in 2024, with crypto-related losses rising by 21% and attacks on centralized services escalating dramatically due to advancements in AI and quantum computing.

     

    Phishing Attack Case Study: John Deaton’s Warning on Evolving Scams

    John Deaton, a crypto veteran and XRP’s lawyer, highlighted the sophistication of modern crypto scams. In February 2024, Deaton shared a personal story of falling victim to a phishing scam despite his experience. He received an email appearing to be from a legitimate exchange, prompting him to enter his seed phrase. The scam resulted in the theft of $500,000 from his account. Deaton emphasizes maintaining skepticism toward unsolicited communications and never sharing sensitive information.

     

    Phishing incidents and losses in 2024 | Source: CertiK

     

    How to Spot a Crypto Phishing Scam

    • Emails or messages urging immediate action.

    • Links that redirect to suspicious or fake websites.

    • Requests for personal or financial information.

    Learn more about spotting crypto phishing scams and protecting yourself from them.

     

    How to Stay Safe From Phishing Scams in Crypto

    • Double-Check URLs: Always verify the website’s URL before entering any information.

    • Enable Two-Factor Authentication (2FA): Add an extra layer of security to your accounts.

    • Avoid Clicking Unsolicited Links: Don’t click on links from unknown or suspicious sources.

    4. Fake Crypto Wallets & Apps

    Scammers create fake wallets or apps that mimic legitimate ones to steal your private keys and access your funds.

     

    In January 2025, malicious browser extensions mimicking the OKX platform appeared in the Firefox plugin store. These extensions were designed to steal users’ sensitive information and funds. OKX promptly removed the fraudulent extensions and advised users to transfer funds from compromised wallets. This incident underscores the importance of downloading software only from official sources.

     

    Source: Cointelegraph

     

    How to Identify Fake Crypto Wallets and Apps 

    • Wallets or apps available on unofficial app stores.

    • Poor reviews or low ratings.

    • Requests for your private keys or seed phrases.

    How to Prevent Installing Fake Crypto Apps 

    • Download from Official Sources: Only download wallets and apps from official websites or trusted app stores.

    • Check Reviews: Look for reviews and ratings from other users.

    • Never Share Private Keys: Legitimate wallets will never ask for your private keys or seed phrases.

    5. "Guaranteed" Profit Schemes

    Scammers promise guaranteed returns with little to no risk, enticing you to invest quickly to secure high profits.

     

    In March 2024, South Korean authorities apprehended two scammers who defrauded a senior citizen of 5.5 billion won ($4.1 million) by falsely guaranteeing 70% monthly profits on cryptocurrency investments between September and December 2022. Operating out of Busan’s Haeundae Police Station area, the individuals, aged in their 20s and 30s, conducted the scam through six separate transactions, presenting forged balance certificates and fake real estate contracts to convince the victim of their legitimacy. They assured the victim that an investment of 1 billion won would grow to 1.7 billion won within a month, leading to substantial financial loss when the promised returns never materialized. 

     

    Although the police successfully detained the fraudsters, the recovery of the stolen funds remains undisclosed. This case exemplifies the dangers of guaranteed profit schemes in the crypto market, highlighting the need for increased vigilance and regulatory measures to protect investors from such deceptive practices.

     

    Red Flags of “Guaranteed Profit” Scams

    • Claims of guaranteed or exceptionally high returns.

    • Pressure to invest immediately.

    • Lack of transparency about how profits are generated.

    How to Protect Yourself From Falling for Guaranteed Profit Scams

    • Be Skeptical of Guarantees: Remember that all investments carry some level of risk.

    • Take Your Time: Avoid making hasty investment decisions under pressure.

    • Research the Opportunity: Understand how the investment generates returns before committing your funds.

    6. Imposter Scams

    Scammers impersonate celebrities, influencers, or legitimate crypto companies to gain your trust and steal your funds.

     

    Heavy metal band Metallica became the latest target of an imposter crypto scam when their official Twitter account was hacked in May 2024 and used to promote the fraudulent METAL Solana memecoin. The scammers leveraged the band's credibility to advertise the token, falsely claiming partnerships with Ticketmaster and MoonPay, which led to over $10 million in trading volume within a short period before the coin's value plummeted. 

     

    Despite the rapid deletion of the malicious tweets and denials from involved parties like MoonPay, the scam highlighted the vulnerabilities of celebrity accounts to such attacks. This incident underscores the importance of verifying the authenticity of promotional content and the ongoing risks of impersonation and pump-and-dump scams in the cryptocurrency market.

     

    How to Spot Imposter Scams

    • Unsolicited messages from supposed celebrities or well-known figures.

    • Requests for crypto donations or investments.

    • Links to fake websites or forms asking for personal information.

    How to Stay Protected From Imposter Scams in the Crypto Market

    • Verify Identities: Check official channels to confirm if the person is genuinely associated with the offer.

    • Avoid Sending Funds to Unknown Parties: Never send crypto to someone you don’t know or haven’t verified.

    • Report Suspicious Activity: Inform the legitimate entity if you encounter impersonators.

    7. Multi-Sig Wallet Scams

    Multi-signature (multi-sig) wallets require multiple keys to authorize a transaction. Scammers exploit these wallets by manipulating one or more keys to gain unauthorized access.

     

    A novel multi-sig wallet scam has emerged, primarily circulating on YouTube, where scammers deceive aspiring thieves into attempting to steal from other scammers, resulting in their own losses. According to a December 2024 Kaspersky security update, fraudsters pose as inexperienced crypto users seeking help to transfer funds from a multi-signature wallet, which theoretically requires multiple approvals for transactions. When wannabe thieves send Tron’s TRX tokens to these bait wallets, the tokens are automatically redirected to wallets controlled by the scammers instead of the intended personal wallets. 

     

    This clever trap leverages the complexity of multi-sig wallets to ensure that unauthorized transfers fail, effectively turning the tables on the attackers. By impersonating novice users and using consistent seed phrases across multiple accounts, the scammers create a widespread scheme that targets and defrauds other malicious individuals, earning them the reputation of digital Robin Hoods while highlighting the intricate vulnerabilities within multi-sig wallet systems.

     

    How to Spot Multi-Sig Wallet Scams

    • Requests to share one of your keys with unknown parties.

    • Changes in the multi-sig setup without your knowledge.

    • Unusual transaction requests requiring multiple approvals.

    How to Protect Yourself From Multi-Sig Scams

    • Manage Your Keys Carefully: Keep your keys secure and never share them.

    • Monitor Wallet Activity: Regularly check your wallet for any unauthorized changes or transactions.

    • Use Trusted Services: Choose reputable providers for multi-sig wallets.

    8. Crypto Honeypot Scams

    Honeypot scams involve creating fake tokens or projects that appear legitimate but prevent investors from withdrawing their funds once deposited.

     

    On April 29, 2024, the cryptocurrency market was rocked by the emergence of Bonk Killer (BONKKILLER), a meme coin on the Solana blockchain whose market capitalization astonishingly surged to $328 trillion, exceeding global GDP. However, this meteoric rise was a facade for a sophisticated honeypot scam designed to deceive investors with promises of high profits. 

     

    The developers of BONKKILLER embedded malicious code within the token’s smart contracts, which effectively prevented investors from selling their tokens by freezing all transactions. As a result, when traders attempted to liquidate their holdings, they were unable to do so, leading to a sharp collapse in the token's value and substantial financial losses. This incident underscores the critical risks associated with unregulated crypto projects and the necessity for investors to perform thorough due diligence to avoid falling victim to such fraudulent schemes.

     

    Red Flags to Spot Crypto Honeypot Scams

    • Tokens with buy-only functionality, preventing sales.

    • Lack of transparency about the project’s team or purpose.

    • Over-reliance on social media hype without substantive information.

    How to Protect Yourself From Honeypot Crypto Scams

    • Inspect Smart Contracts: Use tools like token sniffers to analyze the token’s smart contract.

    • Research the Project: Ensure the project has a clear purpose and a transparent team.

    • Test Withdrawals: Try withdrawing a small amount first to verify the functionality.

    9. Rug Pulls

    Rug pulls occur when project developers suddenly withdraw liquidity from a trading pool, causing the token’s value to crash and leaving investors with worthless tokens. Rug pulls are especially common in the memecoin sector of the crypto market, where fraudsters can launch and promote a new token with very little upfront investments in time and money. 

     

    Learn more about how crypto rug pull scams work and how to keep yourself safe from them. 

     

    Online personality Haliey Welch, known as the "Hawk Tuah girl," became embroiled in a crypto rug pull scam when her newly launched meme coin, Hawk, surged to a $490 million market cap on the Solana blockchain before plummeting over 95% within hours. Critics, including cryptocurrency investigator Coffeezilla, accused Welch and her team of orchestrating a "pump and dump" scheme by hyping the token to attract investors and then selling off their holdings for profit, despite Welch’s denials that her team sold any tokens. 

     

    The rapid decline in Hawk’s value in the aftermath of the memecoin rug pull left investors feeling misled and betrayed, with community members alleging that insiders had been selling tokens from the outset. This incident highlights the deceptive practices prevalent in the unregulated meme coin market, where promoters can manipulate token prices to exploit and defraud unsuspecting investors.

     

    Red Flags in Crypto Rug Pulls

    • Sudden removal of liquidity without explanation.

    • Lack of ongoing development or communication from the team.

    • Over-promising and under-delivering on project milestones.

    How to Protect Yourself From Getting Rug Pulled in Crypto 

    • Check Liquidity Pools: Ensure the project has locked liquidity to prevent sudden withdrawals.

    • Stay Updated: Follow the project’s updates and communicate with the team.

    • Invest Responsibly: Only invest what you can afford to lose and diversify your portfolio.

    10. Deepfake Scams

    Scammers use deepfake technology to create convincing videos or audio recordings of well-known figures, tricking victims into believing the communication is legitimate.

     

    Scammers are increasingly using deepfake technology to impersonate celebrities like Elon Musk, orchestrating sophisticated crypto scams that deceive thousands of investors. On August 25, 2024, a fake livestream titled “LIVE: Elon Musk Endorses Trump Ahead of Debate with Kamala Harris” featured an AI-generated Musk promoting a fraudulent cryptocurrency scheme, enticing viewers with QR codes and official logos to invest in bogus tokens through websites like teslaearn.io. 

     

    According to AI detection firm Sensity, Musk appears in nearly 90% of crypto-related deepfake scams, leveraging his immense credibility to attract unsuspecting fans into pump-and-dump schemes. These deepfake scams typically promise lucrative returns but ultimately defraud investors by directing funds to scammers’ wallets. The ease and low cost of creating convincing deepfakes have made such scams widespread, highlighting the urgent need for enhanced digital security measures and investor education to combat the growing threat of AI-driven fraud in the cryptocurrency market.

     

    How to Identify Deepfake Scams

    • Videos or messages that seem too good to be true, featuring famous personalities.

    • Requests for urgent actions or investments.

    • Inconsistencies in the spokesperson’s behavior or statements.

    How to Stay Safe From Deepfake Scams

    • Verify Communications: Cross-check with official channels before acting on any requests.

    • Be Cautious of Urgency: Legitimate entities won’t pressure you into immediate decisions.

    • Educate Yourself on Deepfakes: Stay informed about how deepfakes work and their common signs.

    How to Stay Safe From Crypto Scams in a Bull Market

    Experts emphasize the importance of vigilance and proactive measures to safeguard your crypto investments. Here are some top recommendations:

     

    1. Do Your Own Research (DYOR)

    Before investing in any project, thoroughly research its fundamentals, team, and use cases. Use trusted sources like CoinGecko and CoinMarketCap to verify the legitimacy of tokens.

     

    2. Secure Your Wallets

    • Use Hardware Wallets: Store your crypto offline using hardware wallets like Ledger or Trezor. Another option for long-term holders is a self-custodial wallet where you enjoy complete ownership of your crypto assets. 

    • Enable Two-Factor Authentication (2FA): Add an extra layer of security to your accounts.

    • Keep Private Keys Secret: Never share your private keys or seed phrases with anyone.

    3. Use Reputable Exchanges and Platforms

    Stick to well-known exchanges like KuCoin. Avoid using obscure or unverified platforms that may lack proper security measures. KuCoin offers a wide range of convenient and highly effective security controls for your account, including two-factor authentication (2FA) and Passkey. 

     

    Google 2FA for KuCoin 

     

    4. Stay Informed About Scams

    Follow trusted sources and crypto influencers to stay updated on the latest scam tactics. Regularly check resources like the California DFPI’s Crypto Scam Tracker for recent scam reports.

     

    5. Implement Risk Management Strategies

    • Diversify Your Investments: Spread your investments across different assets to minimize potential losses.

    • Set Profit Targets: Decide in advance when to take profits to secure your gains.

    • Use Stop-Loss Orders: Protect your investments by setting limits on potential losses.

    6. Be Skeptical of Unsolicited Offers

    If an investment opportunity or communication seems too good to be true, it probably is. Always verify the legitimacy of the source before taking any action.

     

    7. Educate Yourself Continually

    The crypto landscape is a highly dynamic one, constantly changing and developing. Stay informed about new scams and security measures by regularly educating yourself through reputable channels.

     

    Conclusion: Be Smart, Stay Safe

    The above are the typical crypto scams in the current bull run, and more are emerging in areas such as DeFi and social media. Always use your judgement and remember that if something seems too good to be true, it probably is. By staying informed and cautious, you can better protect your investments and navigate the market safely.

    Remember to thoroughly research before making any investments, secure your wallets and personal information, and use reputable platforms and exchanges. Stay informed about the latest scam tactics and implement effective risk management strategies. Cryptocurrency isn’t just about luck; it also requires strategy and vigilance. By staying smart and safe, you can take full advantage of the exciting opportunities that lie ahead in the crypto market. 

     

    Further Reading

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