Key Insights

  • The growth of crypto in India has unfortunately made the crypto space a scam hotbed.

  • Phishing scams involve fake crypto platforms designed to steal login credentials and private keys.

  • Fake investments and Ponzi schemes in crypto promise unrealistic high returns that they never deliver.

  • Romance scams, or "pig butchering," combine emotional manipulation with crypto theft and can be the most devastating kind of scam.

  • Impersonation and giveaway scams use trusted figures or brands to trick victims into sending crypto or revealing personal details.


The rise of crypto in India has brought both excitement and danger to the average user. 

Millions jump into the digital asset space every year, and unfortunately, scammers are never too far behind.

Many of these scammers use tactics from their knowledge of tech to appealing to their victims’ emotions. And because of this, crypto scams in India have become more diverse and harder to deal with.

If you're an investor, trader, or even just crypto-curious, it's important to stay informed about the most common types of fraud.

More importantly, it is necessary to know how to avoid the most common kinds of scams, including:

1. Phishing Scams

Phishing is one of the oldest tricks in the book, and it has adapted just as smoothly into the crypto space.

When phishing, scammers create fake versions of platforms you trust, like exchanges, wallets or crypto services.

They do this in an attempt to steal your login credentials or private keys.

Victims of phishing attacks often receive an email or message that looks exactly like it's from their crypto exchange. 

This message might claim there’s suspicious activity on your account and ask you to click a link to verify it. 

That link, however, takes you to a fake site that mimics the real one. Once you log in, the attackers instantly steal your username and password. From there, they can access your real account and drain your crypto.

To avoid becoming a victim, it is important to always verify URLs. Before clicking them.

This is because fake sites often use small variations in spelling or domain names to trick victims.

Never click on unsolicited links. Instead, type the website address manually or use saved bookmarks.

2. Fake Investment and Ponzi Schemes

Again, if something seems too good to be true, it probably is. This is especially true in markets like crypto, where promises of easy returns are easy to sell.

Many Indians (and people in other parts of the world) have fallen prey to fake investment schemes that promise unrealistic returns. 

Scammers often disguise these attacks as real crypto trading platforms or tokens and paint a picture of a flourishing business on social media.

They can promise returns as high as 10% to 20% monthly or even promise to double your money in a short timeframe. 

Scammers also tend to show fake dashboards and might even allow small initial withdrawals to build trust. 

To avoid becoming a victim, always be skeptical of high returns. 

The crypto market by design is volatile, and guaranteed profits are a red flag.

Always do your research and check if the project is registered with India’s Financial Intelligence Unit (FIU-IND). Does this project have a solid whitepaper and transparent team?

Scammers also tend to push victims to act quickly, which is another red flag, because real investments give you time to think.

3. Romance Scams (Pig Butchering)

Romance scams have become something else over the last few years, with crypto now in the picture.

This type of scam is often referred to as "pig butchering" and combines emotional manipulation with outright theft.

Scammers tend to pose as a romantic partner to their victims and spend time building a relationship online. 

After gaining trust over weeks or months, they introduce you to a “profitable” crypto investment platform. 

At first, everything seems legitimate. You can even withdraw small profits from time to time. 

However, once you invest more, you’re blocked from withdrawing or asked to pay fake fees.

To avoid being a victim, always keep romance and finance separate. If an online date starts talking about investments, it’s a red flag.

A good place to start is to push for a video call before discussing any financial topics (if discussing these topics cannot be avoided).

Finally, trust your instincts. 

If things move too fast or the conversation unexpectedly turns toward crypto investments, take a step back and think.

4. Impersonation and Giveaway Scams

Impersonation scams involve bad actors using well-known personalities or trusted brands to gain your trust. 

These scams usually come in two forms. Sometimes, it’s with fake giveaways, and other times, it’s with impersonated customer support.

For giveaway scams, scammers create fake accounts pretending to be celebrities or crypto influencers. 

They run “giveaways” and ask you to send a small amount of crypto with the promise of sending back double. 

For support scams, you may be contacted by someone claiming to be from your crypto exchange or a government agency. 

They’ll say there’s an issue with your account and ask for personal details or private keys.

If you give in to any of these tactics, you might get robbed or have your wallets drained.

Always check official accounts for verification badges (blue ticks) and cross-verify announcements.

Never send crypto to receive more because real giveaways never ask you to pay first.

5. Rug Pulls

Rug pulls are a classic in the crypto space. In rug pull scams, developers create a new crypto token or project.

These projects tend to have a basic website, flashy marketing and fake endorsements. 

When investors pour in money and the developers accumulate enough, they sell off their tokens and remove all liquidity from the pool.

Because of this, the token’s price crashes to zero and leaves victims holding an empty bag.

To avoid being a victim, always research the teams of any new projects. Are the developers public, and do they have a verifiable history?

Check if liquidity is locked because legitimate projects often lock liquidity for a set period.

Be sure to look for smart contract audits and avoid overly hyped tokens. 

If a project has no real use case but is gaining attention purely through marketing, it could be a scam.

Overall, India’s crypto market is incredibly promising. However, it is also risky.

Remember to never let the fear of scams scare you away from crypto. Still, let it motivate you to invest wisely and protect yourself.