The world of Web3 has brought exciting advancements in decentralization, crypto, and NFTs, but it’s also opened the door to a new breed of scams. From fake tokens to NFT pump-and-dumps, scammers are more creative than ever, taking advantage of the hype and lack of regulation in the Web3 space. Here’s a look at ten infamous Web3 scams and why people keep falling for them despite red flags.

1. Rug Pulls: The Vanishing Act

Rug pulls are one of the most common scams in crypto. A team launches a project, attracts investors with big promises, and then—bam! They cash out the liquidity and disappear, leaving investors with worthless tokens. These scams are easy to fall for because they often look legitimate, with sleek websites, celebrity endorsements, and a lot of hype. One of the most famous examples was Squid Game token, where creators vanished with millions after promising it was tied to the popular Netflix series.

2. Fake Airdrops: Free Money (That’s Not Actually Free)

Who doesn’t like free money? Scammers exploit this by offering fake airdrops—free tokens to your wallet as a “gift.” To claim the tokens, users are asked to connect their wallets to a sketchy website, which then drains their funds. People fall for this because airdrops are a legitimate practice in crypto, so it’s easy to mistake a fake one for the real deal. If you see an airdrop offer that seems too good to be true, it probably is.

3. Phishing Sites: The Lookalike Trap

Phishing sites mimic popular crypto exchanges, wallets, or DeFi platforms, tricking users into entering their login credentials. These scams prey on people who don’t double-check URLs. Phishing sites might look exactly like the original, even down to the logo and color scheme, making it hard to spot the difference. Even savvy users can fall victim to these scams if they’re in a hurry, emphasizing the need for caution.

4. Ponzi Schemes: Old Scams, New Wrappers

Ponzi schemes have been around forever, but they’re even easier to pull off in the Web3 space. Scammers promise huge returns on investment, with profits generated from new investors rather than legitimate revenue. The scheme collapses once new users stop joining. One of the most infamous examples is BitConnect, which lured in thousands of investors with promises of massive returns until it collapsed, leaving many with nothing. In Web3, where FOMO (fear of missing out) runs high, these schemes are sadly effective.

5. Fake NFTs: Copy-Paste ‘Art’

NFTs are unique digital assets, but anyone can copy-paste an image and claim it as an NFT. Scammers create fake copies of popular NFTs or make fraudulent collections, then sell them to unsuspecting buyers. Because it’s difficult to verify authenticity on decentralized marketplaces, people often buy fake NFTs thinking they’re getting the real thing. If you’re buying an NFT, always verify the project’s legitimacy by checking for official links and doing some background research.

6. Social Media Impersonators: Scammers in Disguise

One of the more straightforward scams involves imposters who pretend to be a known crypto influencer, project founder, or customer support rep on social media. They promise exclusive offers, giveaways, or customer assistance, usually requiring you to send funds or provide wallet details. The scam is surprisingly effective because scammers often use verified-looking accounts and copy the influencer’s tone. A rule of thumb: real influencers and companies don’t DM asking for money or wallet access.

7. Pump-and-Dump Schemes: The Hype-Then-Hide Play

In a pump-and-dump, scammers build hype around a token, sometimes creating fake news or partnerships, to drive up the price. Once the token peaks, they sell off their holdings, leaving other investors with worthless assets as the price crashes. This scam is prevalent in low-market-cap tokens where it’s easy to manipulate the price. Newcomers fall for it because, initially, prices seem to be rising legitimately, so people pile on to “not miss out.” If a project has little backing but explosive growth, it might be a pump-and-dump.

8. Fake Exchanges: The Vanishing Exchange Scam

Fake exchanges look like genuine platforms but are designed to steal deposits. They’ll have legitimate-looking interfaces, trading charts, and maybe even a few “customer reviews” for credibility. Newcomers searching for low-fee exchanges are often lured in. Once users deposit funds, the scammers vanish or freeze accounts. If you’re using a lesser-known exchange, double-check its reputation and always prefer exchanges with established track records.

9. Initial Coin Offering (ICO) Scams: The Fundraising Disappearing Act

In an ICO scam, projects raise funds by selling tokens early in exchange for promises of future returns or platform benefits. Once they collect enough funds, the team behind the project vanishes, leaving investors with worthless tokens. Since ICOs are unregulated, there’s little recourse for victims. While ICOs were more popular in the early days of crypto, similar fundraising scams continue under new names. Always research a project’s team, whitepaper, and roadmap before investing.

10. ‘Send Me Crypto, I’ll Send Double Back’ Giveaway Scams

The oldest scam in the book is now the most prolific in Web3 spaces. It often involves a fake giveaway, where a popular figure or brand (like Elon Musk or a major exchange) is “offering” to double any crypto sent to a specified wallet. This scam is especially rampant on social media and YouTube. People fall for it because it taps into the thrill of “easy” money, despite the fact that no legitimate person or company would ever ask for crypto with the promise of doubling it. The only thing multiplying is the scammer’s wallet.

Why Do People Keep Falling for These Scams?

1. FOMO (Fear of Missing Out): Web3 and crypto are fast-paced environments, with massive gains happening seemingly overnight. When people hear stories of others making fortunes, they’re more likely to overlook risks, hoping to get in on the action before it’s too late.

2. Lack of Regulation: The decentralized nature of Web3 means that there’s limited oversight and consumer protection. Scammers take advantage of this, knowing that even if they’re exposed, there’s little anyone can do.

3. Complexity of Web3: For newcomers, Web3 is filled with confusing jargon, complex wallets, and unfamiliar platforms. Many scams prey on beginners who don’t fully understand how things work.

4. Hype Culture: Crypto and Web3 are buzz-driven industries where projects go viral quickly. Scammers know that if they can create enough hype, people will invest without doing their research, swept up in the frenzy.

5. Anonymity: Blockchain allows for anonymity, which makes it easy for scammers to create fake accounts, pump up projects, and vanish without a trace. The lack of transparency makes it harder for users to verify a project’s legitimacy.

How to Avoid Web3 Scams

1. Research: Before investing in any project, look up the team, check for partnerships, and read community reviews. A little research can save you a lot of trouble.

2. Double-Check URLs and Social Media Accounts: Always verify that you’re on the correct website or interacting with official social media accounts. Phishing sites and fake profiles are some of the easiest scams to avoid with caution.

3. Beware of Promises of Easy Money: If something sounds too good to be true, it probably is. Be especially wary of offers that promise high returns with little effort.

4. Use Reputable Platforms: Stick to well-known, reputable exchanges, wallets, and marketplaces. Scams are more common on lesser-known platforms with fewer security checks.

5. Never Share Wallet Keys: Keep your wallet’s private keys and recovery phrases secure. No legitimate service will ever ask for this information.

In Web3, the opportunities can be as big as the risks. By staying informed and practicing caution, you can avoid these scams and participate safely in the decentralized world. While scammers are constantly evolving, knowledge is your best defense against falling for the latest Web3 “too good to be true” scheme.