As cryptocurrencies grow more popular, frauds—particularly crypto scam ads on social media— are also increasing. To entice victims into losing their money, scammers run ads and offer too-good-to-be-true returns on investments.
Although it might be difficult to spot these scams, you can guard yourself from becoming a victim by being aware of typical warning indicators. This guide walks you through how to spot crypto scam ads on social media with ease.
The Emergence of Social Media Crypto Scams
As the crypto market expands, both real investors and cybercriminals have joined the fray. Scammers now find rich ground on social media sites such as Facebook, Instagram, and X—formerly Twitter.
Since anyone can publish advertisements on these sites, fraudsters use the opportunity to promote bogus investment opportunities and other fraudulent schemes. To build credibility, scammers design ads that seem credible, usually copying well-known companies or using celebrity sponsorships.
4 Common Crypto Scam Ads Tactics
Crypto ads scams come in many formats. Hence, knowing the common types of scams can enable you to avoid being a victim.
Fake Investment Offers
Many times, scammers advertise investment opportunities with shockingly huge returns. Usually, they claim that users can double or even triple their investment within a short period. These offerings, which are typically Ponzi schemes—where money from new investors is used to pay returns to previous investors—seem reasonable until they collapse.
Giveaway Scams
Many scam ads claim that users can deposit a small amount of money to qualify for the “free” tokens. They promote fake giveaways or airdrops of cryptocurrencies. The victim sends the money and then gets nothing in return. Any request for cash raises questions, as legitimate giveaways do not require upfront deposits.
Phishing Scams
Some scammers create ads that lead to websites designed to look like official websites of cryptocurrency exchanges or wallets. Thus, users who visit these phishing sites are misled into inputting private keys or login credentials. Once the con artists get the user data, they steal the victim’s money, leaving no chance of recovery.
Romance or Dating Scams
Scammers targeting people via social media or online dating sites choose a more intimate approach. The scammer builds rapport with the victim over time until they convince them to transfer cryptocurrencies as gifts or invest in a fake crypto project. Then, the con artist vanishes after the funds have been transferred.
Red Flags
No matter how convincing they appear, crypto scam ads flash some warning signals. Here are some red flags to watch for that would save you from becoming a victim:
- Unrealistic promises
- Celebrity endorsements
- Pressure tactics
- Anonymous or fake teams
- Poorly designed websites
Real-Life Examples of Crypto Scam Ads
Many crypto fraud schemes utilize social media ads. Sometimes, scammers take over verified accounts to advertise their bogus schemes.
Mandiant Hack
A hacker took over the verified X account of cybersecurity firm Mandiant in January 2024. They changed the account’s name to encourage a fictitious token distribution, fooling consumers into clicking phishing links. The offer seemed reliable, and it came from a verified account.
YieldTrust.ai Scam
Regulators in Texas and Alabama exposed YieldTrust.ai as a scam in April 2023. The business claimed its trading bot could beat human traders. An audit later found that the bot was a hoax and that the platform was designed to prevent users from accessing their money.
How Scammers Target Victims on Social Media
Social media offers scammers various means of reaching their targets. Many times, they take advantage of the same qualities that draw people to social media.
Sponsored Ads
Scammers pay to post their content on social media, like honest companies would. However, people find it more difficult to notice scams as these adverts appear to be real on users’ feeds.
Influencer Partnerships
Some fraudsters pretend to be real enterprises and work with influencers to advertise their bogus cryptocurrency or investment prospects. They could even develop phoney influencer profiles replicating well-known celebrities to seem more legitimate.
False Accounts
Scammers open social media accounts posing as reputable businesses or people. Before trying to steal money or sensitive data, they might chat with users via messages or postings to foster trust.
AI Bots
Artificial intelligence bots can flood social media channels with phony posts, generating the impression of general acceptance or popularity for the hoax. These bots raise their profile by liking, sharing, and commenting on fraudulent posts.
How to Protect Yourself
Following these basic practices can help you protect yourself.
Be on Guard
Approach cryptocurrency projects with a reasonable degree of caution. Anything that appears too good to be true most likely isn’t. Before you commit your money, take some time to scrutinize any project or investment opportunities.
Verify Sources
If an advertisement says a celebrity supports a project, find out via credible news sources or the official channels of the celebrity. Never depend only on what you find in an advertisement.
Avoid Pressure
Real investments never require immediate action. If an offer forces you to respond immediately, consider it a warning to back off and probe further.
Examine the Team
Legitimate crypto projects are open about their team members. Avoid a project if it lacks information on the individuals behind it or if the team appears suspicious or anonymous.
Use Secure Websites
Only submit personal or financial data on safe, certified websites. Search the website’s URL for HTTPS and steer clear of clicking on links from advertisements without first confirming their veracity.
Final Thoughts
Although crypto scam ads are becoming more sophisticated, with the right information, you can spot warning flags and protect yourself. Avoid unreasonable promises, pressure tactics, and faceless teams.
Before making any investments or disclosing personal data online, conduct research. Staying informed and vigilant will help you avoid social media crypto scams.
