10 Crypto Scams to Watch Out for in 2026 | ZebPay - Tech Digital Minds
The landscape of cryptocurrency has been ever-evolving, and by 2026, the markets hit remarkable peaks. Bitcoin soared past $150,000, largely fueled by the rise of institutional ETFs, clearer regulatory frameworks in the US, and an upsurge in global adoption. However, this boom has also paved the way for a surge in sophisticated scams. Chainalysis reported that $12.4 billion was lost to fraud in 2025 alone, with AI deepfakes contributing to 40% of high-value frauds. In India, the Enforcement Directorate (ED) reported individuals lost upwards of ₹2,300 crore to Ponzi schemes just last year.
Scammers are adept at capitalizing on the hype surrounding cryptocurrencies, employing tactics like pig butchering, drainers, and rug pulls. This article serves as a comprehensive guide detailing 10 crypto scams to be vigilant about in 2026, providing real examples and steps to protect yourself. Empowering yourself with knowledge is the first line of defense against fraud.
One of the most concerning tactics scammers have adopted is using AI to produce realistic videos and audio clips of well-known influencers such as Elon Musk and Vitalik Buterin. These deepfakes often feature promises of enormous giveaways, prompting unsuspecting victims to send cryptocurrency in hopes of receiving double their investment. However, once the funds are sent, they quickly vanish.
2026 Case: A notable incident involved deepfake videos of Elon Musk on YouTube that garnered over $5 million within just 20 minutes. Investigations traced the funds back to MEXC and various darknet mixers for laundering.
Red Flags: Look for phrases like “Send 1 BTC, get 2 back” or unverified social media posts.
Protection: Always verify through official channels and never send funds first.
Bogus platforms are popping up everywhere, promising investors unrealistic monthly returns ranging from 10% to 50%. Once victims deposit their crypto and see fake profits, they are subsequently blocked from withdrawing their funds due to “fees.”
2026 Case: An Australian investor lost $64,000 to a platform named Ultra Trade that initially showed promising returns. Solicitations through Signal initially enticed them, and a victim in Cyprus lost €37,000 in a similar manner.
Red Flags: Be wary of guaranteed returns and pressure tactics requiring you to deposit more.
Protection: Stick to FIU-registered exchanges and ensure you check the FIU-IND VASP list for legitimacy.
A prevalent risk in the DeFi world is the rug pull. Developers hype up tokens, drain liquidity pools, and vanish, leaving investors high and dry. Alarmingly, memecoins now account for about 80% of such scams. Early indications in 2026 show losses of around $6 billion attributed to these incidents.
2026 Case: A major case involved Meteora, a Solana project where insiders controlled 95% of the token supply via 150 wallets. Their strategy included pumping the token before draining and leaving retail investors with $69 million in losses. Another case with Kokomo Finance saw a theft of $5.5 million due to exploitative coding.
Red Flags: Watch for locked liquidity lasting less than six months and anonymous development teams.
Protection: Consult resources like RugDoc and Honeypot.is, and always audit contracts via Etherscan.
Phishing remains a classic and effective tactic. Scammers create fake emails or websites that mimic legitimate exchanges, asking users to verify their wallets. When victims enter their seed phrases, funds are drained, often followed by ransomware attacks.
2026 Case: One victim in California lost $100,000 after receiving help from a fake Discord support channel that led them to a counterfeit Arkadiko site. Another case involved hack attacks on a hardware wallet that was compromised via a fake airdrop, resulting in a loss of $7,800.
Red Flags: Urgent login prompts and typographical errors in URLs (like “binanace.com”) should raise suspicions.
Protection: Bookmark legitimate sites and utilize hardware wallets with two-factor authentication.
These scams are alarming and usually occur on social media platforms. Impersonators promise to “double your crypto” if users send them funds first.
2026 Case: Deepfake iterations of public figures such as Donald Trump and Elon Musk on X (formerly Twitter) managed to lure over $10 million from victims who were led to send Ethereum with the hope of receiving matching amounts in return.
Red Flags: Be cautious of celebrity endorsements and claims of “limited time.”
Protection: Legitimate giveaways won’t require you to send anything in advance, so always check the official platforms.
These scams work insidiously, creating a false sense of trust through romance or friendship built over months. Once the victim is attached, the scammer introduces a fake trading platform where “profits” are shown, only to block withdrawals later.
2026 Case: A woman in Maryland lost millions to Southeast Asia-based scammers who also employed secondary “recovery” firms that ended up siphoning off even more money. Since 2020, losses from such scams have exceeded $75 billion globally.
Red Flags: Unsolicited chats that lead to investments and fake dashboard displays.
Protection: Avoid sharing screens or wallet details and report suspicious activities to cybercrime.gov.in.
In these schemes, groups hype up low-cap tokens on platforms like Telegram or X, artificially inflating prices and then dumping them, leaving retail investors stranded. Approximately 3.6% of new tokens are impacted by such schemes.
2026 Case: The Solana-based group Pump.fun had 98% of its launches ending in rug pulls or pumps. The ED investigations unveiled a massive Ponzi scheme in India worth ₹2,300 crore that operated using celebrity impersonations.
Red Flags: Rapid pumps on Telegram and euphoric claims of the tokens “going to the moon.”
Protection: Steer clear of tokens with market caps under $1 million, and use DEX screeners to ensure authenticity.
Malicious websites and browser extensions are on the rise, tricking users into connecting their wallets for what appears to be alluring offers like airdrops, only to auto-drain their funds through pre-approved transactions. The “drainer-as-a-service” market has surged by 135%.
2026 Case: Kaspersky reported a sharp increase in this tactic; fake airdrop claims resulted in the draining of over $1 billion from DeFi wallets mid-year.
Red Flags: Beware of invitations to “connect for airdrops” and unknown decentralized apps claiming to be legitimate.
Protection: Use tools like Revoke.cash to revoke approvals and consider creating fresh wallets for testing new projects.
These scams are prevalent where bogus websites advertise “free tokens” which then result in wallet drainage when you connect. Telegram is a major platform for disseminating these scams.
2026 Case: A staggering $500 million was lost via fraudulent Uniswap v4 airdrop claims where victims unwittingly approved contracts leading to the instant loss of ETH and USDC.
Red Flags: Be cautious of unsolicited airdrop links and claims that have a sense of urgency.
Protection: Only interact with established project websites and avoid approving unknown contracts.
After falling prey to a scam, many victims encounter “fund recovery services” that pose as saviors, charging upfront fees to trace stolen assets but ultimately robbing the victims again.
2026 Case: Victims of pig butchering scams lost over $100,000 by engaging with fake recovery lawyers, leading to further thefts that were traced by Chainalysis.
Red Flags: Be wary of claims like “We found your coins” which come with requests for upfront payments.
Protection: Use free blockchain explorer tools like Etherscan and only opt for verified firms after filing a police FIR.
Checklist:
Businesses: Implement KYC and AML protocols, monitor transactions in real-time, use Extended Detection and Response (XDR) systems, and conduct vendor audits regularly.
What is the most common crypto scam in India?
Phishing attacks and fake investment platforms are leading the charge, particularly as the ED continues to uncover Ponzi schemes using celebrity deepfakes, amounting to losses of ₹2,300 crore.
How do deepfake crypto scams work?
Scammers use AI to generate videos of influential figures who appear to promise extravagant giveaways. When victims send cryptocurrency, they lose all their funds.
Can I recover funds from a rug pull?
Recovery is rare due to the irreversible nature of blockchain transactions. It is advisable to report these incidents to cybercrime.gov.in, as some exchanges might freeze the addresses involved.
Are crypto giveaways ever legitimate?
Yes, giveaways can be legitimate if they originate from verified exchange accounts. However, always ensure they don’t require payment or sending crypto first.
What should I do if phished?
Immediately disconnect your wallet, revoke any approvals using Revoke.cash, change your passwords, and report the phishing incident as soon as possible.
How to spot pump-and-dump groups?
These channels often proliferate on Telegram, promoting low-cap tokens with exaggerated claims. Utilize decentralized exchange tools to verify holder distribution and avoid falling prey to scams.
Disclaimer:
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do their own research or seek independent advice if necessary before making any transactions in crypto products and NFTs.
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