Beware of These Common Crypto Scams This Bull Run

The crypto market experienced a significant surge starting in November 2024, when Donald Trump won the U.S. presidential election and was praised for his pro-crypto stance. This optimism pushed Bitcoin to an all-time high of over $108,000 in December 2024. With an altcoin season running, crypto prices are rising further, attracting both new and experienced investors who see the potential for high returns.

However, during a bull run, the opportunities can be enormous, but so are the risks. As excitement in the market grows, scammers often look to take advantage of unsuspecting investors. It’s crucial to stay alert and well-informed to avoid falling into traps. Understanding common crypto scams is essential for protecting yourself and your investments.

With Bitcoin expected to hit new highs in 2025, the chances of falling victim to scams are increasing. Let’s look at some of the most common scams in the crypto world and how to protect yourself.

1. Pump-and-Dump Crypto Scams

Pump-and-dump crypto scams are one of the oldest tricks in the crypto book, designed to artificially inflate the price of a cryptocurrency through fake news, social media hype, or manipulation. Once the price reaches an unsustainable peak, the scammers sell off their holdings, causing the price to crash and leaving unsuspecting investors with worthless coins. 

A notorious example involved a teenager in California who created a memecoin called Gen Z Quant and rapidly sold off his tokens, making over $50,000 in under 10 minutes. As the price plummeted, the remaining investors were left with massive losses. These scams are most common with memecoins or unlisted tokens, which are often poorly regulated and easily manipulated.

The danger of pump-and-dump scams lies in their ability to play on the excitement and fear of missing out (FOMO) that new investors often experience. These schemes often involve coordinated efforts across social media platforms, making them harder to detect and avoid. While seasoned investors may be more cautious, newcomers can easily fall victim to the hype. It’s essential to be wary of sudden price movements and aggressive promotional campaigns that seem too good to be true.

2. Fake Crypto Wallets & Apps

Fake wallets and apps are another major security risk in the crypto world. Scammers create counterfeit apps or browser extensions that mimic popular crypto wallets or exchange platforms, often tricking users into downloading them. Once installed, these fake apps can steal the user’s private keys or access their funds. 

These fraudulent apps can be difficult to spot because they often look identical to legitimate services. Scammers may use similar branding, logos, and user interfaces to make their fake apps seem trustworthy. To avoid falling victim to this type of crypto scam, investors should only download apps from official sources, like the Apple App Store or Google Play Store, and check reviews before installing any software. Always be cautious about granting apps access to your sensitive data.

ALSO READ: How to Choose the Right Crypto Wallet

3. Phishing Attacks

Phishing attacks are one of the most common methods scammers use to steal funds from crypto investors. In these attacks, scammers trick individuals into revealing their private keys, passwords, or other sensitive information by posing as legitimate entities. In 2024 alone, the FBI reported over 69,000 phishing attacks targeting crypto users. These crypto scams can come in the form of emails, fake websites, or direct messages that appear to be from a trusted source, like a popular crypto exchange or wallet service. Once the victim unknowingly shares their private information, the scammer gains control of their crypto assets.

Phishing attacks are particularly dangerous because they rely on human error rather than technological weaknesses. Scammers use social engineering tactics to create a sense of urgency, like claiming that a user’s account has been compromised and asking them to reset their password. To protect themselves, investors should always verify the legitimacy of any communication and avoid clicking on suspicious links. Using two-factor authentication (2FA) adds an extra layer of security to protect against these types of attacks.

4. Imposter Scams

Imposter scams involve scammers pretending to be trusted figures or companies in the crypto world to steal funds. These can include fake accounts of celebrities, industry leaders, or even popular crypto exchanges. For example, in May 2024, hackers gained control of Metallica’s official Twitter account and used it to promote a fake cryptocurrency called METAL. They convinced users to invest, but once the funds were sent, the crypto scammer disappeared, and the cryptocurrency never existed.

Imposter scams prey on the trust that people have in reputable figures or companies. Scammers often create convincing social media profiles or websites that appear official, using familiar logos and names to trick users. To protect themselves, investors should always verify the identity of anyone they are dealing with online, especially if they are being asked to send funds. When in doubt, it’s always a good idea to reach out to the official channels of the person or company in question.

5. Crypto Honeypot Scams

Honeypot scams are another common tactic used by scammers in the crypto world. In a honeypot crypto scam, scammers create fake tokens or projects that look like lucrative investments. Once an investor sends their funds, they are unable to withdraw them, as the scammers have programmed the smart contract to prevent withdrawals. A notorious example of this crypto scam involved a memecoin called Bonk Killer, which attracted investors with its skyrocketing price. However, once people tried to sell, they were unable to, resulting in massive losses for those who had bought in.

The appeal of honeypot scams is that they can appear to be legitimate investment opportunities, especially when the price of the token is rapidly rising. Investors may be encouraged to invest quickly, fearing they will miss out on a big opportunity. To avoid falling for honeypot crypto scams, it’s essential to inspect the smart contract before investing, using tools like token sniffers to check for red flags. Always do thorough research on any token before committing funds, especially if it seems to be gaining popularity very quickly.

ALSO READ: How to Secure Your Crypto Wallet with Strong Passwords and 2-Factor Authentication

6. Fake ICOs & Token Sales

Initial Coin Offerings (ICOs) are a legitimate way for new projects to raise funds, but they are also a breeding ground for scams. In these fake ICOs, crypto scammers create fake websites and social media pages that appear to be promoting a promising new cryptocurrency. 

In November 2024, for instance, scammers used hacked social media accounts of celebrities like McDonald’s and Usher to promote a fake ICO. Investors were convinced to buy tokens for a project that didn’t even exist, losing substantial amounts of money. These fraudulent ICOs often promise high returns and fast gains but lack any real utility or backing.

The appeal of ICOs lies in their ability to offer early access to potentially groundbreaking technology. However, the lack of regulation in the crypto space makes it easy for scammers to create convincing fake projects. Many of these scams fail to deliver on their promises or disappear entirely once they have drained investors’ funds. Investors should be cautious when encountering ICOs, ensuring that the project is backed by a transparent team and a well-documented roadmap before investing.

7. Multi-Sig Wallet Scams

Multi-signature wallets, which require multiple approvals to authorize a transaction, are often seen as a safer option for securing crypto assets. However, crypto scammers have found ways to target these wallets by manipulating one or more of the keys. In one notable crypto scam in early 2025, scammers tricked individuals into participating in a fraudulent multi-sig wallet scheme by promising that they could help steal from other scammers. Instead, the victims lost their own funds as the scammer gained access to one of their wallet keys.

The appeal of multi-sig wallets lies in their ability to provide added security through multiple levels of verification. However, the complexity of these wallets can make them more vulnerable to attacks if the parties involved don’t trust each other completely. Users should be cautious when dealing with multi-sig wallets and ensure that they only share keys with trusted parties. Regularly reviewing wallet permissions and monitoring transactions can help detect any unauthorized activity before it’s too late.

8. “Guaranteed” Profit Schemes

Scammers love to prey on people’s desire for easy money, and one way they do this is by promising guaranteed high returns with little to no risk. These “too good to be true” offers often attract both seasoned and new investors. 

One of the most infamous cases involved two scammers in South Korea who convinced an elderly individual to invest over $4 million by guaranteeing her a 70% return each month. Of course, the promise was entirely fabricated, and the victim’s money was never returned. While this type of scam might seem obvious to some, many investors fall into the trap, especially when they are lured by the prospect of quick profits.

These crypto scams are particularly dangerous because they often operate under the guise of a legitimate investment opportunity. Scammers may claim that they are experts or use convincing testimonials to make their case. However, there is no such thing as a guaranteed profit in the world of investing, and any scheme that promises one is almost certainly a scam. Investors should be extremely wary of any offer that guarantees high returns with minimal risk and take the time to research the opportunity thoroughly before committing funds.

Conclusion

As the market grows, crypto scams will continue to evolve, making it more important than ever for investors to stay informed. While new opportunities arise during a bull run, so do new risks. Being aware of common crypto scams, conducting proper research, and taking security precautions can help investors navigate the market safely. By staying vigilant and questioning anything that seems too good to be true, individuals can protect their assets and make smarter investment decisions.

To protect yourself from falling victim to crypto scams, ensure you’re investing through a trusted and secure platform like Mudrex. Download the Mudrex app now from the Google Play Store or the Apple App Store to start investing in 650+ cryptocurrencies with confidence.

For regular market updates, trade signals, and tips on how to stay safe in the crypto world, join our official Mudrex Telegram community. Stay informed and connected with fellow investors to avoid crypto scams and make smarter decisions!