The fake crypto support scam: What it is and how to avoid it?

Key takeaways

• Scammers are becoming more sophisticated, using tactics like posing as official crypto support executives to deceive you into sharing private information or transferring funds to fraudulent wallets.
• Warning signs of a scam include receiving unsolicited support messages, requests for private keys or passwords and unverified profiles pretending to be official.
• To avoid falling for these scams, always use official support channels, double-check social media profiles for verification, never share confidential information and contact legitimate support directly if in doubt. 
• If scammed, immediately cease communication with fraudsters, secure your funds, report the incident and update your account security.

Cryptocurrency scams became more common as the industry grew, targeting investors of all levels of experience. Tactics have grown more sophisticated and swindlers are always looking for new ways to scam you. The fake crypto scam is one of these.

Scammers try to deceive you into divulging private keys or passwords, resulting in your funds being stolen, so it’s important to be aware of how this fake crypto scam works.

You should know what a fake crypto support scam is, red flags for recognizing them and importantly, how to avoid them.

What are fake crypto support scams?

A fake crypto support scam is a type of fraud where scammers pose as support representatives of a cryptocurrency project. Their objective is to obtain access to your accounts, then steal your personal information and your crypto. The FBI reported over 37,500 complaints of fake tech support scams in the US in 2023, resulting in losses of more than $924 million.

Scammers often use pop-up windows and notifications that look like operating systems or antivirus warnings to trick victims. These alerts, usually in red or orange, claim that your device is facing a security issue. The scammers then provide a phone number for the victim to call for “help,” which leads straight to the scam.

Under the guise of “fixing” your issue, they might ask for your personal information, like login credentials or seed phrases. In more sophisticated frauds, they might instruct you to move your money to a supposedly “safe” wallet that is actually controlled by the scammers.

A recent addition to the tools of scammers are deepfakes, which are AI-generated videos or audios that imitate a person’s appearance and voice. Scammers can create convincing deepfakes of well-known personalities in crypto to misguide and persuade you to give up your funds.

Deepfake technology was used to generate a video of ex-Binance CEO Changpeng Zhao (CZ) supporting a scam crypto investment plan, forcing CZ to clarify that it was a deepfake and not him.

A deepfake interview of Elon Musk is another example of such fraud. On August 25th, 2024, a fake YouTube livestream showed Musk endorsing United States presidential candidate Donald Trump and discussing a crypto investment. The video even featured a QR code linking to a suspicious website.

Crypto frauds are increasingly using deepfakes, making it vital to verify information and not blindly trust video or audio content.

Did you know? Cryptocurrency scams targeting investments saw a significant increase in the first half of 2024, with stolen funds increasing from $857 million to $1.58 billion.

Steps involved in fake crypto scams

The fake crypto support scam typically progresses in a few preconceived steps. Here’s a breakdown of how the scam works:

Step 1: First point of contact

The scammer initially contacts the victim, frequently using social media platforms like WhatsApp, Telegram or X. This may occur after you post about a problem with a crypto service such as an exchange or a wallet. 

Con artists may also create fictitious websites or post customer support numbers for you to find while doing an internet search. In either case, the scammer approaches you while posing as a helpful customer service representative.

Step 2: Winning confidence of victim

The con artist will work to win your confidence. They may use a profile that positions them as a staff member of a crypto project you’re having trouble with. They may speak in a professional manner, leading you through “troubleshooting” procedures, and conveying a sense of urgency.

Step 3: Ask for confidential data

On the pretext of solving the problem, the con artist will request sensitive data, including account login credentials or secret phrases. Given an opportunity, they may even ask for a direct payment to settle the problem. 

Be aware that reputable crypto exchanges do not ask for payments to solve user issues and have dedicated support forms/ channels to contact teams.

DeFi platforms like Uniswap enable you to submit a query via a form. You may also join their Discord community to ask questions.

Watch out for search engine scams

When you need support trading your crypto on an exchange or app, chances are you’ll use a search engine like Google. You should be mindful that scamsters are lurking there to defraud you.

In August 2024, a crypto scam targeted Fred, a 60-year-old investor, leading to losses of over $100,000. The scammer, pretending to be from crypto exchange Coinbase, tricked Fred into sharing his account details and bank information. Fred now criticizes Google for allowing the scammer to advertise at the top of their search results.

Another crypto user searching for Superbridge, a bridge to sell lesser-known crypto, clicked a Google ad that looked genuine. The ad redirected to a fake website (Seperbridge.app) that stole his $3,000 in USD coin (USDC).

As these incidents suggest, you should not rely on Google to find customer support service numbers because scamsters are gaming search engines that take unsuspecting victims to fake websites, apps or customer care representatives.

Use of psychological strategies for fraud

Fraudsters usually play psychological games with you. A strategy they often employ is to create a sense of panic, prompting you to act in haste and take action they desire. Victims may experience overwhelming pressure to make snap judgments that cause them to lose their crypto funds.

In the case of fake support scams, the fraudster makes you feel like your crypto is in immediate danger. They may tell you your account has been compromised and you will lose your funds if you don’t act immediately. Feeling panic and confusion, you can lose the ability to act logically and rush into decisions without thinking them through.

Pig butchering is a common type of scam designed to gain your trust and then disappear with your money. In 2021, scammers used dating apps like Tinder and Bumble to target victims. By building trust, they convinced users to invest in fake cryptocurrency platforms. While victims believed they were profiting, their funds were actually disappearing, so be cautious.

Scammers often use authentic-looking profiles or even fake websites mimicking real crypto exchanges, so you may find it hard to realize that they are scams. Moreover, swindlers may sound knowledgeable and professional, making you develop trust in them and lower your guard.

Did you know? The Internet Crime Complaint Center (IC3), a division of the Federal Bureau of Investigation (FBI), recorded a surge in cryptocurrency-related financial fraud in 2023, with over 60,000 complaints filed and estimated losses exceeding $5.6 billion.

Crypto ATMs: A growing tool in customer support scams

A tactic scammers are increasingly using is convincing victims to make payments for fake services or resolve non-existent issues through crypto ATMs. Scammers may instruct victims to deposit fiat in crypto ATMs and then transmit the crypto to their accounts. As crypto offers anonymity to some extent, it can be challenging to track down or retrieve the money.

Scammers employ psychological tricks to deceive victims into sending them money using crypto ATMs. They create bogus emergencies such as account breaches, unpaid fees or blocked service, displaying a sense of urgency and insisting that prompt payment is required to avoid penalties or losing your money. 

Fraudsters then tell you that regular payment methods such as credit cards or bank transfers are unavailable for certain reasons and crypto is the only way to pay. On the phone, they often guide you to the nearest crypto ATM and walk you step-by-step through depositing cash and sending crypto to the desired wallet. Sometimes, they may refer to the payment as a refundable deposit.

A 68-year-old California woman lost $12,000 after a scammer posing as an Internal Revenue Service agent claimed her Social Security number was linked to a fraud scheme. The caller threatened her with arrest if she didn’t send money immediately. Following the scammer's instructions, she withdrew cash and deposited it into a crypto ATM, only to realize later that she had fallen for a scam.

Red flags about fake crypto support scams

By being aware of the warning signs of fake cryptocurrency scams, you’ll be able to identify them. Here are some red flags to watch for:

• Receiving unsolicited messages: If you receive an unexpected message from someone claiming to be one of the support staff members of a crypto project, just keep away. It’s not the way representatives of reputable crypto projects contact their users.
• Request for confidential information: Getting your confidential information is often the key objective of scammers. If someone requests your private keys or other personal details, stop communicating with them immediately.
• Tone of communication: While expert fraudsters are usually sophisticated, you may pick up many by their bad grammar, informal phrasing or extremely casual contact. Also, they’re likely to be using international phone numbers.
• Unverified social media profiles: On social network accounts, looking for official verification signs may be helpful. X, for example, has a blue checkmark on verified profiles. Still, profiles may get hacked and scammers may post fraudulent messages, so look for other signs as well.
• Misspelled official names: Take a thorough look at the user profile of the person who has communicated with you before going ahead. On fraudsters’ profiles, the project names may be slightly incorrect.

 

As a crypto user, you need to be aware of the differences between genuine and fraudulent assistance. Real support staff members won't coerce you into providing critical information. They’ll guide you through secure means, such as via chat with their website or app. They’re also likely to do some security checks first without asking for private information such as passwords, private keys or others.

Did you know? A Californian resident saw an Instagram ad for crypto trading with "the Professor" on coobe.im. The victim deposited $200, saw fake account growth, and invested more, but couldn't withdraw funds due to fake waiting lists. After investing over $14,000, coobe.im stopped responding!

How to avoid fake crypto support scams

To avoid a fake crypto support scam, you need to be cautious, educated and informed. Here are some best practices to protect yourself:

• Always use authorized channels: Whenever you need to get in touch with customer service, make it a point to use only authorized channels. Rather than responding to unsolicited messages, go to the exchange’s help page via the official website or app.
• Never disclose confidential information: As a rule, never reveal secret keys, account passwords, or seed phrases to anyone. Real customer service executives won’t ever request such information.
• Double check social media profiles: Before communicating with anyone on social media, make sure that their account is legitimate. Looking for verification indicators on social media, such as blue checkmarks or appropriate branding in profile photos will be helpful. Still, remember that even verified accounts can be hacked.
• Check matters with official support: If you have doubts about the legitimacy of the person claiming to be support staff, reach out to the official support via a different channel, such as their app or direct email. You could also make an online search to discover if other people have fallen victim to the same hoax.
• Avoid third-party apps and links: Scammers often use third-party apps and links to trick users into sharing sensitive information or transferring funds to fake wallets. Avoiding these apps and links is essential to staying safe.

Did you know? The Department of Financial Protection and Innovation (DFPI) in California has set up a crypto scam tracker that users can search by company name, scam type or keywords to find specific complaints received by the department. You can use this information to protect yourself.

What to do if you fall victim to fake crypto support scams

If you’ve fallen victim to a fake crypto support scam, don’t panic. There are steps you can take to limit the damage:

• Cut contact with the fraudster: Break off all contact with the con artist right away. Move your funds as soon as possible to a new wallet if you have disclosed your private keys or wallet details. 
• Report the scam to exchange or wallet: Inform the exchange or wallet the scam has occurred on. They may assist in nabbing the swindler or getting some of your funds back.
• Inform local authorities: Apprise your local authorities or cybercrime department of the scam. Even if this doesn’t get your money back, it will help you keep out of trouble in case the scammer uses the stolen funds or channels the money for unlawful activities. 
• Change your credentials: If you’ve still got access to your account, change your account passwords and enable two-factor authentication. It will help protect you from any further damage.
• Exercise caution in further transactions: Learn your lessons from the scam and make sure you don’t repeat the mistakes in any future transactions. Be aware of what is happening in the industry and double-check any support-related communications.

Knowing is half the battle when it comes to protecting yourself from scams. Being informed and staying cautious are your best defenses against fraudsters who exploit the growing popularity of cryptocurrencies.