Introduction
The world of crypto changes fast, and many people stumble before learning to protect themselves. Scammers exploit emotional and psychological weaknesses, manipulating greed, fear, and misplaced trust—tactics that affect everyone, even seasoned experts.
Why do people fall for these scams, and what psychological triggers lead them astray? When we understand how these schemes work, we can recover from each fall and prepare ourselves to face future threats.
FOMO — ‘It’s too good to be true’
Scammers often create a sense of urgency around a seemingly lucrative opportunity, exploiting victims’ fear of missing out (FOMO).
One common scam preys on greed. Victims receive a message claiming, “Your account has been created,” along with a link and login credentials. Out of curiosity, they log in and see a large balance—say, $10,000—already in the account.
Tempted by easy profit, the victim tries to withdraw the funds. The fake platform claims that withdrawals require a $1,000 top-up to unlock the full $11,000. After sending the money, the victim discovers that the platform is fake and that the funds are gone. Instead of earning more, they lose both their deposit and the illusionary balance.
Why we fall: The desire for opportunity, amplified by FOMO, overrides caution and leads even careful people into impulsive, costly mistakes.
The trust trap — ‘Betrayal from within’
Fraudsters often exploit trust and authority, hiding in plain sight to carry out their scams.
Consider a company that decided to manage its own crypto payment processing, relying on its skilled engineers. Confident in their ability to bypass third-party services, they stored funds in a company wallet. Months later, a vigilant financial controller noticed a serious problem: ad sales had increased, but the expected revenue never arrived.
An internal audit uncovered that someone had modified the payment system to divert millions in crypto to an unknown address. Despite exhaustive investigation, the company never recovered the stolen funds or identified the culprit.
Why we fall: We naturally trust those close to us—family, friends, colleagues. That trust gives us comfort but also exposes us to betrayal from within.
The power disadvantage — ‘There is no other option’
Scammers target people when they’re most financially or emotionally vulnerable, using desperation, greed, or hope against them. They exploit insider knowledge to select victims strategically, turning manipulation into a calculated operation.
A chilling example involved the Russian-speaking ransomware group REvil. Hackers infiltrated a U.S.-based insurance company, accessed its list of clients insured against ransomware, and deliberately attacked those firms. They knew their targets would likely pay quickly to prevent sensitive data leaks.
Why it worked: The scammers controlled the situation completely. Their victims faced a painful choice—pay the ransom or face devastating data exposure. For many, there truly was no other option.
Picking ourselves up: Learning from others’ mistakes
Members of the crypto community can strengthen their security by studying real-world examples and turning lessons into daily habits.
When Dutch law enforcement dismantled the Hansa Market darknet market, they used a clever strategy. After arresting the two operators and seizing the servers, investigators kept the market running for another month. They silently monitored more than 1,000 daily transactions, gathering vital intelligence on 10,000 users and their crypto addresses. Once they shut it down, authorities shared the data with Europol, leading to multiple arrests and a major blow to the dark web economy.
This case shows how proactive monitoring, education, and strategy can outsmart even the most elusive criminals. Falling for a crypto scam doesn’t mean someone is foolish—it means they’re human. Scammers exploit universal weaknesses, from overconfidence to desperation. Understanding these psychological tactics is the key to prevention.
How we rise: Learning from others’ experiences, staying informed, and practicing constant vigilance are our strongest defenses. With better habits, greater awareness, and smart use of available tools, we can turn setbacks into growth and resilience in the digital asset world.
Chain Retrieval: Strengthening the ecosystem
Organizations like Chain Retrieval, a blockchain intelligence platform, help governments, crypto businesses, and financial institutions investigate cryptocurrency crimes. By using real-time blockchain analysis tools—such as transaction monitoring and aggregated visualization—Chain Retrieval empowers law enforcement and private companies to make rapid, informed decisions against crypto-related threats.
Follow them on Instagram at @chainretrieval and on YouTube at Chain Retrieval YouTube Channel.