Common Cryptocurrency Scams

Modified on Mon, 24 Mar at 11:52 AM

Introduction

Cryptocurrency adoption in Malaysia continues to grow, but so do the scams targeting investors and traders. Fraudsters use increasingly sophisticated tactics to deceive individuals into handing over their funds. Many scams originate from offshore entities, making it difficult for authorities to intervene. This article highlights the most common cryptocurrency scams in 2025 and provides essential tips to protect yourself.

TLDR: Cryptocurrency scams can take many forms—fake exchanges, phishing, Ponzi schemes, and impersonation frauds. Scammers often lure victims with unrealistic promises or urgent requests. Protect yourself by verifying platforms, avoiding unknown investment opportunities, and enabling strong security measures.

Common Cryptocurrency Scams to Watch Out For

1. Phishing Scams

Phishing scams involve fraudsters impersonating legitimate cryptocurrency exchanges, wallets, or financial institutions to steal your login credentials or private keys.

Red Flags:

Emails or messages from unknown senders urging you to click on a suspicious link.
Websites that look identical to legitimate crypto platforms but have slight misspellings in their URLs.
Requests for your private keys, passwords, or two-factor authentication (2FA) codes.

How to Protect Yourself:

Always verify website URLs before entering your login details.
Enable two-factor authentication (2FA) on your exchange accounts.
Never share your private keys or recovery phrases.

2. Ponzi and Pyramid Schemes

Ponzi and pyramid schemes promise high, guaranteed returns with little to no risk. They rely on recruiting new investors to pay earlier participants, eventually collapsing when recruitment slows.

Red Flags:

Promises of unrealistic or guaranteed high returns.
Pressure to recruit others to join the "investment."
Lack of clear information on how profits are generated.

How to Protect Yourself:

If an investment sounds too good to be true, it probably is.
Check if the platform is registered with Securities Commission Malaysia (SC).
Avoid schemes that emphasize recruitment over actual trading or investment.

3. Fake Cryptocurrency Exchanges and Wallets

Scammers create fraudulent cryptocurrency exchanges or wallets to steal users' deposits and personal information.

Red Flags:

Exchanges with no regulatory oversight or an unclear company background.
Wallets that ask for your private keys or personal information.
Platforms that do not allow withdrawals after deposits.

How to Protect Yourself:

Use well-known and regulated exchanges.
Research an exchange before depositing funds.
Only download wallets from official sources.

4. Giveaway and Impersonation Scams

Scammers pose as celebrities, influencers, or crypto companies, offering fake giveaways that require you to send cryptocurrency first.

Red Flags:

Social media posts promising to "double" your crypto if you send funds first.
Fake accounts impersonating well-known figures like Elon Musk or local crypto influencers.
Messages claiming you won a giveaway but requiring a payment to claim the prize.

How to Protect Yourself:

Remember that legitimate giveaways do not ask for upfront payments.
Verify official social media accounts before engaging.
Never send crypto expecting to receive more in return.

5. Fake Investment Platforms

Many offshore investment platforms claim to offer lucrative stock/ forex/ crypto trading or mining opportunities but are actually scams.

Red Flags:

Platforms that require direct crypto deposits instead of using official payment channels.
No information about the company’s regulatory compliance.
Websites that block withdrawals or delay payouts indefinitely.

How to Protect Yourself:

Use platforms licensed by Securities Commission Malaysia.
Research reviews and complaints before investing.
Avoid any platform that does not allow withdrawals.

6. Romance Scams

Scammers build fake relationships with victims online, then manipulate them into sending cryptocurrency.

Red Flags:

Someone you just met online insists on discussing cryptocurrency investments.
They claim to have a "profitable investment opportunity" and guide you to a specific platform.
Requests to send cryptocurrency to "help" with an emergency or business deal.

How to Protect Yourself:

Be cautious of online relationships that quickly involve financial discussions.
Never send cryptocurrency to someone you have not met in person.
Verify investment opportunities independently.

How to Stay Safe from Cryptocurrency Scams

Verify before you invest: Always check if an exchange or investment platform is licensed by Securities Commission Malaysia.
Be skeptical of high returns: If it sounds too good to be true, it likely is.
Secure your crypto assets: Use strong passwords, enable 2FA, and store private keys securely.
Report suspicious activity: If you suspect a scam, report it to Bank Negara Malaysia (BNM), Securities Commission Malaysia (SC), or the police (CCID – Commercial Crime Investigation Department).

Conclusion

Scammers continue to evolve their tactics, preying on unsuspecting investors. By staying informed and cautious, you can protect your cryptocurrency assets from fraud. Always conduct thorough research before investing or engaging in crypto-related transactions. If you suspect a scam, report it immediately to the authorities.

Stay informed and stay safe!

Disclaimer

Hata is committed to protecting our customers from fraudulent activities. We’ll never contact you outside our app or platform to ask for your account details, ask you for payment, or push you to make transactions. If someone does this claiming to be us, it’s a scam - don’t trust it and report it right away. All our real messages come through official communication channels only.

We’re here to help, but we cannot promise to recover lost funds. You are responsible for keeping your information safe and conducting your due diligence on the people that you deal with. We are not liable for losses from scams or unauthorised actions conducted outside our platform.

If something seems fishy or out of place, stop talking to them, don’t pay them anything, and let us know through our app. You can also report it to authorities like the Securities Commission Malaysia or local law enforcement.