8 Common Crypto Scams and How to Protect Yourself: From Pig Butchering to Fake RPC Nodes

Have you ever heard of rug pulls and pig butchering? According to the FBI, cybercriminals stole more than $1.3 billion in cryptocurrencies during the first quarter of 2022 alone—a staggering figure considering the total crypto market cap was just under $1 trillion at the time. Scammers continuously refine their tactics, exploiting the anonymity of wallets and the irreversible nature of blockchain transactions. Below, we dissect eight of the most common crypto scams and outline concrete steps to avoid them.

1. Investment / Get-Rich-Quick Scams

These schemes are not new, but crypto adds a dangerous twist. Fraudsters pose as representatives of crypto exchanges, mining companies, or new coin projects. They often reach out via social media or instant messaging, using fake websites that mimic legitimate platforms, and they manipulate search engine results and online ads to lure victims. The pitch typically involves guaranteed, unrealistically high returns, preying on FOMO (Fear Of Missing Out).

Scams can range from small-scale operations siphoning modest sums from many users to massive investment frauds draining entire life savings.

How to protect yourself:

• Always research using trustworthy sources before committing any money.
• If an investment opportunity sounds too good to be true, it almost certainly is.
• Verify the website’s URL meticulously. For instance, Crypto.com’s official domain is https://crypto.com, while a scam might use https://crypto.com-premium.somescammerdomain.com. Pay close attention to the end of the URL.

2. Phishing Scams

Phishing has plagued the internet for decades, and it has seamlessly transitioned into crypto. Attackers impersonate reputable platforms or their support teams through email, SMS, instant messaging, social media, and phone calls. They clone profiles, websites, and email templates so convincingly that even cautious users can be fooled. The objective is to trick victims into clicking malicious links or handing over login credentials, thereby gaining access to accounts and funds.

Some messages dangle an exclusive promotion, while others create panic by claiming the account has been compromised and urging immediate action, such as resetting credentials or transferring assets.

Common phishing examples include:

• Emails demanding immediate account reactivation to avoid fund loss.
• Messages promising unrealistic returns on a new product or service.
• Direct messages from individuals claiming to be support staff ready to help with an issue.
• Links that request wallet private keys or seed phrases under the guise of connecting a wallet, activating it, claiming an airdrop, or resolving a technical problem.
• Phone calls pressuring victims to make payments or reveal sensitive information.

If you encounter a phishing attempt, report it through the official channels of the platform being impersonated.

Prevention measures:

• Enable anti-phishing codes where available, such as on Crypto.com. This unique word appears in all legitimate communications from the platform; its absence signals a scam.
• Do not click links in unsolicited messages. Hover over them to inspect the full URL, or contact official support to verify authenticity.
• Enter credentials only through official apps or by typing the website address directly into your browser.
• Never share sensitive information, login data, or personally identifiable information with anyone who contacts you on messaging apps, social media, or by phone.

3. Remittance / Withdrawal Scams

Here, a scammer claims they are unable to withdraw or transfer funds and asks for your help, promising a share of the proceeds. In one common scenario, they provide valid wallet credentials containing USDC or USDT but claim that withdrawals are stuck. The catch is that the wallet lacks the native gas tokens (e.g., ETH on Ethereum, CRO on Cronos) needed to execute transactions. The victim sends crypto into the wallet to cover the gas fee, only to have a bot instantly siphon out the deposited funds before any manual withdrawal can take place.

Another variant involves someone pretending to be in a crypto-hostile country, asking you to buy coins on their behalf in exchange for a bank transfer. After you send the crypto, the remittance either gets clawed back because it was made with stolen accounts, or it never arrives at all.

How to avoid these traps:

• Steer clear of any off-the-books deals, no matter how effortless or lucrative they appear. You risk financial loss and potential legal exposure.
• If someone hands you a wallet seed phrase and tells you to take whatever is inside, pause and ask: “Is this too good to be true?”

4. Romance Scams

This age-old con has been reborn in the crypto era. A fraudster forms a seemingly genuine romantic relationship online, often professing love unusually quickly. A major red flag is a persistent refusal to engage in video calls, usually blamed on a bad internet connection. Once emotional dependence is established, the requests for money begin—claims of sudden financial hardship, a critically ill family member who cannot afford treatment, or a desperate need to meet in person but lacking travel funds. The promises of repayment are never fulfilled.

Protective steps:

• Evaluate the situation rationally. If the pattern matches the description, step back.
• Not having seen the person on a video call throughout the relationship is a strong warning sign.
• Relationships that escalate unusually fast should raise suspicion.
• Perform a reverse image search to check if the scammer is using someone else’s photos.
• Scammers frequently insist on payment in crypto or untraceable instruments like gift cards to conceal their identity.

5. Pig Butchering Scams

A hybrid of investment and romance fraud, pig butchering is a calculated long con. The scammer approaches targets on dating apps, social media, or online communities, gradually building a romantic bond. Instead of directly asking for money, they steer conversations toward crypto investing as a pathway to financial freedom. The victim, often inexperienced, is then guided to a fraudulent investment platform that appears legitimate.

The “butchering” happens when the victim has transferred as much money as the scammer believes they can extract—both the scammer and the fake platform then vanish. Sometimes, victims are even shown fake gains on their initial investment to encourage them to pour in additional capital.

Prevention tips:

• Avoid unregulated, unknown platforms; always verify their reputation independently.
• Tell the person you have no spare money and are not interested in crypto. If they disappear, it confirms their insincerity.
• Do not let FOMO drive your decisions, especially when returns are “guaranteed” or unrealistically high.
• The golden rule remains: if it seems too good to be true, it probably is.

6. Rug Pulls

Rug pulls are a crypto-native scam and among the most elaborate to detect. Scammers create a new DeFi or NFT project complete with a professional website, whitepaper, roadmap, and active community. They artificially pump the token price using their own funds, generating hype and attracting FOMO-driven retail investors. Once enough liquidity has accumulated, the developers dump their entire holdings, crashing the price to near zero. The term “rug pull” aptly describes the suddenness of the collapse, as if a rug were yanked from under the buyers’ feet. The team then abandons the project and disappears.

How to spot and avoid rug pulls:

• Read the whitepaper carefully. Check if it is plagiarized from another project.
• Investigate the team. Anonymous developers are a serious red flag.
• Be skeptical of projects promising outsized, guaranteed returns.
• Verify any claimed partnerships with reputable entities through official channels.

7. Cryptojacking

Cryptojacking is a form of cybercrime where hackers secretly use a victim’s device computing power to mine cryptocurrency. It surged during the 2017 crypto boom, when coin prices skyrocketed. Traditional mining requires costly hardware and electricity; cryptojacking eliminates those overheads. Attackers need only inject a few lines of JavaScript code—through viruses, phishing, unpatched vulnerabilities, malicious ads, or infected browser extensions and apps—to start mining on compromised machines.

The mined coins flow directly into the hacker’s wallet, while victims notice slower performance, elevated processor usage, overheating, rapid battery drain, and mysterious spikes in electricity bills.

Defensive measures:

• Install software exclusively from trusted sources.
• Keep operating systems and all applications updated with the latest security patches.
• Remain vigilant against phishing emails and links.
• Consider using ad blockers and even disabling JavaScript when practical.

8. Wallet Infrastructure Scams (Fake RPC Nodes)

Not all scams involve fake apps or stolen credentials. A newer, more insidious technique targets the very connection between an on-chain wallet and the blockchain. In a fake RPC node scam, users are instructed to download a legitimate wallet like Crypto.com Onchain but are then directed—often through fake support channels, social media, or messaging apps—to connect it to a malicious RPC endpoint.

RPC nodes serve as the bridge between the wallet and the blockchain. When a wallet interacts with a compromised RPC, transaction data can be manipulated without triggering any obvious alerts within the app. Because the wallet itself is not compromised and the interface appears normal, victims may assume everything is safe. However, transactions signed through a malicious RPC can result in funds being drained or rerouted to an attacker’s address.

How to protect yourself:

• Use only default or officially recommended RPC endpoints provided within the wallet app.
• Be wary of anyone instructing you to “fix,” “sync,” or “verify” your wallet by changing network or RPC settings.
• Crypto.com will never ask users to modify RPC configurations via private messages or third-party platforms.
• If you are unsure whether a wallet connection is safe, pause all transactions and seek guidance through official Crypto.com support channels.

Staying Safe in an Evolving Threat Landscape

As crypto continues to advance, scammers evolve alongside it. Stay diligent and skeptical. Use only secure, reputable platforms like Crypto.com that offer robust protections such as multi-factor authentication and anti-phishing codes. Never invest in unknown platforms without thorough independent research. Trust your instincts, and never forget the timeless rule: if it looks too good to be true, it almost certainly is.