Cryptocurrency Fraud: How Scams Work and How to Avoid Them

When you hear about cryptocurrency fraud, the deliberate deception of individuals or organizations to steal crypto assets or personal information. Also known as crypto scams, it’s not just about hacked wallets—it’s about manipulated trust. People lose millions every year because they believe something that sounds too good to be true. And it usually is.

Most fake exchanges, websites that look real but have no infrastructure, no licenses, and no customer support. Also known as phantom platforms, they vanish after collecting deposits. Think EXNCE or Catalyx—both had polished websites, fake reviews, and even fake customer service numbers. One stole $14 million. The other didn’t even exist. Then there are airdrop scams, fake token giveaways that trick you into connecting your wallet or paying "gas fees" to claim free coins. Also known as phantom airdrops, they’re often listed on CoinMarketCap with zero volume and no team behind them. Projects like 2CRZ, RBT, and even fake PBR airdrops promise riches but deliver nothing. They rely on FOMO, not utility.

It’s not just about dodging fake sites. Real security means understanding what’s behind a project. Is there a working product? Are the devs anonymous? Is the token locked? Does it have real users, or just hype? Cryptocurrency fraud thrives when people skip these checks. You don’t need to be a coder to spot red flags—just ask: Who benefits if I click this link? Why does this airdrop need my private key? If the answer feels off, it is.

Behind every scam is a pattern: urgency, secrecy, and a lack of transparency. Legit projects don’t rush you. They explain how things work. They publish audits. They answer questions. Scammers don’t. The posts below show you exactly how these scams play out—through real cases like Catalyx’s collapse, EXNCE’s ghost presence, and CoinMarketCap’s paused airdrops. You’ll see what failed, what worked, and how to tell the difference before you lose money.