The Rise of Crypto Scams on Social Media

In 2021, over 95,000 people reported losing $770 million to social media crypto scams. Surprisingly, platforms like Twitter and Discord, known for crypto activities, were not included in the FTC’s data.

How Crypto Scammers Work:

Scammers often trick people using fake websites, hacked profiles, or fake giveaways. Here are the top crypto scams you need to know about:

1. Investment Scams:

These scams promise big returns with no risk. Victims are asked to send crypto to a specific wallet, with the promise of doubling their money. But once the transfer is made, the funds disappear. Between 2021 and early 2022, investment scams caused $575 million in losses—over 50% of all crypto scam losses.

2. Romance Scams:

Known as “pig butchering,” these scams start on social media and quickly move to private messaging apps. Scammers build trust with sweet talk, then trick victims into sending crypto. Losses from romance scams totaled $185 million from 2021 to early 2022. The average victim lost about £8,000. Studies show that women aged 25–40 are most often targeted.

3. Impersonation Scams:

Fraudsters pose as representatives of reputable businesses or government authorities. They scare victims by claiming their money is at risk due to fraud or investigations. Victims are told to transfer funds into crypto wallets to “protect” their assets. In 2021, these scams caused $133 million in losses.

4. Celebrity Impersonation:

Fraudsters hack or fake celebrity accounts to promote fake crypto giveaways. For example, scammers hacked Kevin O’Leary’s Twitter account in 2022, posting fake Bitcoin and Ethereum giveaways. Victims sent over $118,000 before the scam was discovered.

5. Pump-and-Dump Schemes:

Scammers use influencers to hype up small cryptocurrencies. Once the price rises, scammers sell their tokens, leaving other investors with worthless assets. Even celebrities like Kim Kardashian and Lindsay Lohan have been fined for promoting risky crypto projects without proper disclosures.

6. Fake Verification Badges:

Verified badges on platforms like Instagram and Twitter make accounts seem trustworthy. Scammers use fake badges or hacked verified accounts to trick people into scams. After Twitter introduced paid verification, fake verified accounts promoting scams surged.

7. Fake Apps:

In 2021, Americans lost $42.7 million to these apps. Some apps lock users’ funds once they’re deposited, while others steal personal data to access crypto wallets.

8. Online Quizzes:

Fun quizzes on social media can be a front for scams. Some quizzes gather personal information like security questions for online accounts. Others promise rewards for answering crypto-related questions but require victims to send crypto first.

Why Scams Thrive on Social Media:

Social media has become the hub for crypto conversations, where influencers promote projects, companies engage users, and individuals seek advice. Unfortunately, these same platforms make it easy for scammers to find victims.

Key platforms like Instagram, Twitter (now X), and TikTok are popular for scams involving fake giveaways, phishing links, and impersonations. Even LinkedIn has seen scams targeting professionals in the crypto industry.

Real-Life Examples:

1. Celebrity Scams: In 2025, scammers used fake accounts of a crypto CEO to steal £2.5 million in a fake giveaway.
2. Fake NFT Projects: Fraudsters sold a fake NFT collection on Instagram and vanished with investor funds.
3. AI Deepfakes: Scammers used AI-generated videos of famous figures to trick people into sending crypto.

How Social Media Platforms Respond:

Platforms are trying to fight scams by improving account verification, removing fake accounts, and raising awareness.

• Stricter account verification processes
• Real-time fraud detection
• Partnerships with blockchain experts to track stolen funds