The Rise of Cryptocurrency Scams in 2025 - How to Spot Them & Stay Safe

Cryptocurrency promised a financial revolution. Instead, for many, it’s become a feeding ground for scammers.

Today’s fraudsters aren’t just hiding in dark corners of the internet. They’re on your social media feed, in your inbox, and sometimes even in your favourite celebrity’s ‘voice’ (thanks, AI deepfakes). From fake trading platforms and phishing apps to romance scams and AI powered impersonations, their tricks are evolving faster than ever.

The damage is staggering. In 2024 alone, UK victims lost over £649 million to investment fraud, with two thirds of those cases involving cryptocurrency. That’s a 16% jump from the year before.

The good news? Scams aren’t inevitable. With the right knowledge, you can spot them early, avoid the traps, and know what to do if the worst happens.

At Refundee, we’ve already helped UK victims recover over £90 million from banks and financial institutions. Our specialist team of former bankers, fraud investigators, and lawyers sees first hand how these scams work - and how victims can fight back.

This guide will break down:

• Why crypto scams are surging in 2025

• The biggest red flags to watch out for

• Simple, practical ways to protect your money - and what to do if you’ve already been scammed

In a rush? Here’s a quick summary

Crypto scams are on the rise in 2025 - from fake apps and trading sites to deepfake celeb ads and romance scams.

Watch out for ‘guaranteed returns’ claims, urgent requests for crypto payments, fake endorsements made with AI and unknown apps or platforms.

Stay safe by using FCA verified platforms, double checking links and apps and never sharing wallet info.

Already scammed? Refundee may be able to help you claim money back through your bank. (add link to trype form somewhere here)

Why crypto scams are booming in 2025

Crypto crime isn’t slowing down. It’s getting faster, smarter, and harder to detect. Here’s why:

1. Instant, anonymous payments

Crypto transactions don’t require ID, can’t be reversed, and happen instantly. Once your money’s gone, scammers can vanish without a trace.

2. The rise of ‘fraud factories’

Forget lone hackers and one man bands - today’s scams are run by organised teams operating like businesses. They use call centres, fake customer service departments, and cloned platforms to run large scale scam operations around the world.

3. Social engineering

Scammers don’t just rely on tech - they exploit human psychology. They’ll use romance, urgency, fear, and trust to manipulate you into handing over money or private details.

4. Patchy regulations

While the UK is starting to see some change, many countries still lack strong consumer protections. Scammers use this to their advantage, moving operations to friendlier jurisdictions to avoid being caught.

Refundee is actively working with UK policymakers to push for better safeguards.

5. AI powered deception

AI tools make it easier than ever to create convincing fake sites, clone real brands, and even generate lifelike deepfake videos of celebrity and influencer endorsements. All within minutes.

6. The hype factor

Crypto is still trending, which means scammers can target excitement, FOMO, and inexperience - especially with new investors who are keen to ‘get in early’.

Types of cryptocurrency scams to watch for

These are the most common - and most dangerous - cryptocurrency scams we’re seeing in 2025:

1. Fake trading websites

It’s one of the most common types of crypto scam. Fraudsters create fake crypto trading websites that impersonate real platforms, sometimes even cloning FCA regulated branding (trust us, recovery scammers rip off our website all the time!).

Victims are lured in with fake dashboards showing false profits. Some scammers may even allow you to make small, initial withdrawals to build trust before blocking access or demanding more deposits.

Refundee tip: If a platform claims they’re FCA regulated, always check on the FCA register.

How to avoid it:

• Never click links from strangers or cold contacts.

• Double check website URLs for extra letters or misspellings (e.g. refundee.com or refundeee.com)

• Do your research - search for the platform’s name plus ‘scam’ or ‘review’

• Only use platforms listed on the official FCA website

2. Fake trading apps

Just like fake websites, scam crypto apps mimic real trading tools to trick users.

These apps often get shared through WhatsApp, Telegram, email, or social media, rather than app stores. Some even mimic brands like Binance or Coinbase, using fake dashboards and live data.

Once downloaded, victims may see small returns before being blocked or asked to pay fake ‘fees’ or ‘taxes’ to withdraw their funds.

Refundee tip: If the app isn’t on the App Store or Google Play Store (or asks for multiple top ups) it’s probably a scam.

How to avoid it:

• Only download apps from official app stores.

• Check the developer name and read reviews.

• Avoid apps promoted in random messages.

• Search app name and ‘scam’ or ‘review’ before installing.

• Make sure the app is on the FCA register (if it claims to operate in the UK)

3. Pump and dump schemes

Low value coins are hyped up via influencers or group chats, causing prices to spike. The scammers then sell off (‘dump’) their coins, leaving everyone else with worthless tokens.

Example: The viral ‘hawk-tuah girl’ meme coin crashed 91% within hours of launch in 2024, sparking pump and dump accusations.

Refundee tip: Be wary of coins with anonymous developers, vague promises, and heavy social media hype. If it sounds too good to be true, it probably is.

4. Extortion scams

Cryptocurrency extortion scams involve scammers threatening victims into handing over crypto payments. In 2024, Action Fraud saw a rise in reports of crypto extortion linked to phishing emails, data leaks and hacked social media accounts.

Scammers will go to great lengths to make these types of extortion scams as convincing as possible, including using leaked passwords or your home address in phishing emails to get your attention.

Common threats include exposing private data, leaking fake webcam footage, or doxing. The threats are almost always fake, but the psychological pressure can be intense. It’s a tactic scammers rely on to get you to panic and pay quickly.

How to avoid it:

• Don’t respond or pay. The scammers rely on fear, not facts.

• Change your passwords if personal details were mentioned.

• Report the scam to Action Fraud and delete the messages.

• Use 2FA and don’t reuse passwords.

5. Fake celebrity endorsements (AI deepfakes)

AI has made it easier than ever for scammers to impersonate public figures, celebrities and influencers in crypto scams. In 2025, deepfake videos and AI generated voice clips of people like Martin Lewis, Elon Musk, or Keir Starmer have been widely used to promote fake crypto investment opportunities or fake giveaways.

These scams often appear as social media ads, fake news articles, or even doctored interviews. These ads or ‘news’ clips often claim the celeb will double your crypto... but once sent? It’s gone.

Real case: In 2024, Martin Lewis publicly warned that deepfake videos using his face were being used to promote a fake crypto app that stole thousands from UK victims.

How to avoid it:

• No real celebrity promotes unknown, private crypto investment schemes.

• Search for public warnings from the celebrity, brand or the FCA

• Never invest through links in ads or messages - always go directly to known websites.

6. Mining scams

Crypto mining scams promise high passive income through ‘cloud mining’ or investing in mining equipment. Victims are told they can earn returns by purchasing mining contracts or hardware, but almost all of the time, these services don’t actually mine anything.

How to avoid it:

• Avoid any mining service that guarantees fixed returns.

• Research whether the company has real equipment. Try to find evidence of actual operations.

• Use established providers if you want to mine crypto, not random platforms advertised online.

7. Fake initial coin offerings (ICO’s)

A fake Initial Coin Offering (ICO) is when scammers pretend to launch a new cryptocurrency, selling tokens to early investors only to vanish after collecting all of the funds. These scams often include slick websites and countdown timers to create urgency.

Although ICOs are less common now, similar schemes are rebranding as ‘token sales’ or ‘pre-sales’ in 2025. The UK’s Financial Conduct Authority has warned consumers not to invest in unregulated tokens or crypto startups.

How to avoid it:

• Avoid any coin not listed on major exchanges.

• Check who’s behind it - is there a real team?

8. Phishing scams

Phishing scams in crypto involve tricking people into revealing sensitive information like wallet credentials or login details, often through fake websites, apps, or messages pretending to be from legitimate providers like Binance or Coinbase. Once the scammer gets access to your account, funds are drained instantly and can be difficult to recover.

Some phishing scammers also pretend to be the HMRC requesting unpaid taxes or delivery companies like Evri asking you to click a link or verify something.

How to avoid it:

• Never enter important details like your seed phrase online, not even with ‘support’ teams.

• Always check the URL carefully (e.g. binance.com vs biinance.com)

• Enable 2FA for extra protection.

9. Fake brokers and investment firms

These scammers present themselves as expert crypto brokers or professional crypto investment firms, often complete with websites, fake advisors, fake reviews, and fake FCA authorisation.

Victims are offered portfolio management or guaranteed crypto returns. Scammers lure you in with fake dashboards and sometimes even allow you to make small withdrawals at the start to gain trust and distract you from the red flags. But once you’ve deposited enough, you’re blocked from the platform or your ‘broker’ disappears. 

How to avoid it:

• Always check firms on the FCA warning list

• Don’t invest with people you don’t know and trust.

• Be wary of anyone promising guaranteed returns or asking for ‘taxes’ or ‘withdrawal fees’.

10. Government, business and job impersonators

Crypto scammers increasingly impersonate trusted institutions - including the FCA, HMRC, police and employers.

These scams might involve fake job offers that require you to pay with crypto to ‘unlock’ next steps in a task, or fake warnings that you owe taxes to the HMRC that you need to pay for with crypto.

Some even pose as hiring managers at tech companies, using fake interviews to build trust before asking for payments.

How to avoid it:

• The government and other official authorities don’t ask for crypto.

• Always confirm job offers through official channels (and research the company!)

• Hang up on calls and ignore texts demanding urgent crypto payments.

11. Romance / ‘pig butchering’ scams

We know, it’s not the nicest of names.

‘Pig butchering’ scams combine romance scams with crypto fraud. Scammers build long term emotional relationships with victims, often over dating apps, Facebook, or WhatsApp. They then slowly introduce the idea of investing together in cryptocurrency, or claim they need money urgently.

These scams are carefully staged. Fake platforms are created, showing large profits to encourage even more deposits, and eventually, victims are locked out or asked for extra fees.

How to avoid it:

• Be cautious if someone you meet online quickly brings up crypto.

• Never send money to someone you haven't met in person.

• Use reverse image search to check for fake profile photos.

How to spot a crypto scam: red flags to look out for

🚩 ‘Guaranteed’ returns or zero risk claims

🚩 Urgent pressure, limited-time offers or threats

🚩 Unverified people contacting you on social media or via DMs

🚩 Requests to move existing crypto to an unknown wallet

🚩 Deepfake videos, cloned logos, or celebrity endorsements

Tools and verification methods

​​Before sending any money or sharing personal information, take a moment to check who you're dealing with. Here are some essential tools and methods you can use.

1. FCA warning list and other company checkers

Use the FCA warning list to see if the firm is authorised or flagged as a scam. Cross reference with Companies House or other official company checkers.

2. Domain searches

Check the domain’s creation date and owner details. Scam sites are often only weeks old. You can check archive.org to see if the site has a history or if it was recently created for scamming purposes.

3. Blockchain explorers

If you're asked to send crypto, paste the wallet address into a blockchain explorer to check for suspicious patterns or large scam related movements.

4. LinkedIn & video calls

Look for a real, verifiable LinkedIn profile for the person you're speaking with. Don’t hesitate to request a video call to confirm identity (scammers often refuse them).

5. Ask for documentation

A real investment or cryptocurrency firm should have documentation that proves their regulatory status. If they avoid providing it or send suspicious looking materials, that’s a red flag.

Is crypto really ‘unrecoverable’?

Many people believe once crypto is gone, it’s gone forever.

While recovery is challenging - and chasing scammers directly is near impossible - there are other ways to fight back.

At Refundee, we don’t go after the scammer. We focus on whether your bank or payment provider failed to protect you.

If you were pressured, manipulated, or misled into sending crypto, you may have a valid claim for reimbursement.

What to do if you've already sent crypto

If you’ve already sent crypto to a scammer, you’re not alone - and you’re not out of options. Here’s what to do next:

1. Stop all contact

Cut off all communication. Don’t send more money, even if they claim it’s to ‘release’ your funds. They’re just trying to get even more money from you.

2. Gather your evidence

Take screenshots of your conversations, the website or app involved, wallet addresses, transactions, and any other relevant emails or documents.

3. Report the scam

File reports with:

• Action Fraud

• The FCA

• The Police / The National Cyber Security Centre

• Your bank and any crypto exchange used

4. Start your complaint

Contact your bank immediately to make a complaint. 

Or let Refundee take it from here…

Recovering money lost to a crypto scam can be tough, but with the right support, it’s not hopeless.

At Refundee, we specialise in helping scam victims fight for their money back.

With a team of experts who work day in, day out with crypto scams, banking policies, and evidence gathering, we’ll handle all the complex parts - from tracing transactions to building your case - so you don’t have to face this alone. We’re UK based, and have already recovered over £90 million for scam victims.

Think you have a claim? Complete our simple claim form today and let’s find out together. We’re no win, no fee and it’s completely free to check if you have a case.