The Scale of the Problem
The crypto industry lost over $2 billion to scams in 2023, and the number grows every year. Unlike traditional finance, blockchain transactions are irreversible; once your funds are stolen, there is no bank to call and no chargeback process.
The good news: the overwhelming majority of crypto scams rely on the victim not doing basic due diligence. A five-second token check or a quick URL verification prevents most losses.
$2B+
Lost to scams (2023)
67%
New tokens have red flags
300K+
Honeypot tokens flagged
The 6 Most Common Crypto Scams
Honeypot Tokens
Critical RiskA smart contract that lets you buy but prevents selling. Your funds are permanently trapped. Run every new token through a free honeypot checker before purchasing.
Check a Token →Rug Pulls
Critical RiskDevelopers create a token, build artificial hype, then drain the liquidity pool and disappear. Signs: unlocked liquidity, anonymous team, no audit, sudden massive marketing spend.
Phishing Websites
High RiskFake copies of Uniswap, MetaMask, or other DeFi platforms. They steal your seed phrase or get you to sign malicious transactions. Always verify the URL character by character.
Fake Token Airdrops
High RiskUnknown tokens appear in your wallet. Attempting to swap them calls a malicious contract that requests unlimited approval to drain your real assets. Never interact with unsolicited tokens.
Pig Butchering
High RiskA scammer builds a fake friendship or romance over weeks or months, then gradually convinces you to invest on a fake trading platform they control. Losses often exceed $50,000.
Fake Support & Impersonation
Medium RiskFake MetaMask, Coinbase, or exchange support agents in Telegram/Discord DMs. They ask for your seed phrase to 'fix' a problem. Legitimate support never asks for your seed phrase.
Your Anti-Scam Checklist
Run through this checklist before every new investment or interaction:
Tools to Protect Yourself
Free Honeypot Detector
Check any ERC-20, BEP-20, or Solana token for scam patterns in under 2 seconds.
Check a Token →Wallet Risk Checker
Analyse any wallet for suspicious behaviour, mixer interactions, and risk flags.
Check a Wallet →Token Approval Revocation
Regularly revoke unused token approvals at Revoke.cash to prevent approval-drain attacks.
Visit Revoke.cash →GWI Academy
Take the full Wallet Safety 101 course with real-world case studies and a certificate.
Start Course →What to Do If You've Been Scammed
Unfortunately, most crypto scam losses are unrecoverable. But you can minimise further damage and help protect others:
Stay Protected with Guava
Free honeypot detection, wallet risk scores, and security education; everything you need to trade safely.