Introduction

The rise of cryptocurrency has created new opportunities in Pakistan. Young freelancers, traders, and everyday people are exploring Bitcoin, Ethereum, and stablecoins as ways to earn and save. It promises fast transactions and financial freedom. But behind that shine, scams lurk everywhere.

In the first half of 2025, investors worldwide lost nearly $2.5 billion to crypto hacks and scams $2.29 billion after some assets were recovered, according to Investopedia. That’s more than the losses reported for all of 2024.

In Pakistan, the risk is even bigger. Our country is among the top 10 in crypto adoption worldwide, yet regulations are still unclear. This makes ordinary investors easy targets. Many fall for Ponzi apps, fake Binance clones, or WhatsApp pump groups that vanish overnight.

This article is not about fear. It is about awareness. By looking closely at the most common crypto scams to avoid, we can learn to protect our hard-earned money.

We’ll walk you through the top crypto scams to avoid, how they work, and how to stay safe. Let’s look beyond the headlines and understand what really matters.

Why Crypto Scams Are Growing Fast in Pakistan

Cryptocurrency is popular in Pakistan because it offers something our traditional banking system doesn’t: freedom. Freelancers get paid faster, investors see higher returns, and traders enjoy round-the-clock markets. But this freedom also comes with risk.

Scammers know three things about Pakistani investors:

1. Many are new to crypto.
2. There is no strong government protection yet.
3. People want quick profits.

This mix creates a perfect hunting ground for fraudsters.

In 2025 alone, crypto hacks and scams surged, largely driven by phishing and wallet attacks. Trusted platforms like Bybit were hit; one theft totaled $1.5 billion. Plus, the Pakistan Crypto Council (PCC) was established in March 2025 to regulate the space. Yet many still fall prey to fraud before protections take hold.

Top Crypto Scams to Avoid

Here are the most common traps that Pakistani users and global investors should know about:

1. Fake Exchanges and Trading Sites

Fake exchanges are one of the oldest scams, but they remain highly effective.

How they work:

• Scammers build websites or apps that look exactly like trusted platforms.
  
  
• They may even rank on Google Ads, so when you search “Binance login,” you land on a fake page.
  
  
• Once you deposit money, the site either blocks withdrawals or shuts down completely.
  

Example: In Karachi and Lahore, a fake Binance app promised daily returns of 11%. It allowed small withdrawals at first, creating trust. Then, one day, it locked all accounts. Victims had no way to recover their deposits.

How to avoid it:

• Always check the website URL. Official Binance is “binance.com.” Small spelling changes like “binnance.com” are traps.
  
  
• Download apps only from verified stores, not random APK files.
  
  
• Never trust unsolicited links sent on WhatsApp or Telegram.

2. Phishing and Impersonation Scams

Phishing remains the number one method scammers use worldwide.

How it works:

• You receive an email, WhatsApp message, or Telegram alert.
  
  
• The message looks official, using the Binance or Coinbase logo.
  
  
• It says things like:
  
  
  • “Verify your account to avoid suspension.”
    
    
  • “Urgent withdrawal issue click here.”
    
    
• The link takes you to a fake login page. Once you enter your details, scammers take full control of your account.
  

Example: In 2025, FIA warned about phishing messages claiming to be from “JazzCash Crypto Support.” Victims were told to connect their wallet for “faster withdrawals.” Once they clicked, their funds were drained.

How to avoid it:

• Never click suspicious links. Type URLs directly into your browser.
  
  
• Enable two-factor authentication (2FA). Even if scammers get your password, they won’t log in without the second code.
  
  
• Remember: no exchange will ever ask for your seed phrase.

3. Ponzi and Pyramid Schemes

Ponzi schemes are very common in Pakistan because they appeal to our desire for fast returns.

How they work:

• Early investors are paid using money from new investors.
  
  
• As long as new people join, the scheme looks real.
  
  
• Once new deposits slow down, the scheme collapses.
  

Example: In 2021, a fake company posing as a Binance partner collected billions of rupees. When FIA began investigating, the operators fled. Thousands of people, from students to retirees, lost their savings.

How to avoid it:

• If someone promises guaranteed returns, run away.
  
  
• Legitimate trading and investing always involve risk.
  
  
• Check if the company is registered. In Pakistan, crypto platforms are not officially licensed yet so any “registered” claim is usually fake.

4. Fake Airdrops & Giveaways

Free coins sound tempting, but most “airdrops” are just scams.

How they work:

• Scammers set up Twitter or YouTube accounts pretending to be Elon Musk, Vitalik Buterin, or local influencers.
  
  
• They announce, “Send 1 ETH and receive 2 ETH back.”
  
  
• Once you send money, nothing comes back.
  

Another trick is fake Telegram channels that ask you to connect your wallet for an airdrop. Once connected, the scammer empties your wallet.

Example: In 2023, FIA traced a fake “PI Coin Airdrop” Telegram group that stole millions from local investors. The group used deepfake videos of influencers to gain trust.

How to avoid it:

• Never send crypto to random giveaway addresses.
  
  
• Only trust airdrops announced by verified official channels.
  
  
• Keep a separate wallet for testing unknown tokens.

5. Pump-and-Dump Groups

Pump-and-dump scams are very common on WhatsApp and Telegram in Pakistan.

How they work:

• Organizers pick a low-value coin.
  
  
• They tell members to buy at the same time.
  
  
• Prices rise quickly. Early insiders sell at the top.
  
  
• Everyone else is left with coins that crash in value.
  

Example: In 2024, a WhatsApp group called “Crypto Millionaires Pakistan” lured over 5,000 members. People were told to buy a small token called “ShibaNew.” Within hours, the price jumped. But by evening, it crashed 90%. Group admins deleted everything and vanished.

How to avoid it:

• If someone asks you to join a secret pump group, leave immediately.
  
  
• Coins that rise too fast usually fall even faster.
  
  
• Legitimate projects don’t need secret groups to boost value.

6. Cloud Mining & Mobile Mining Scams

Mining crypto requires expensive equipment and electricity. Scammers exploit this by offering “cloud mining contracts.”

How they work:

• Platforms claim you can rent mining power for a small fee.
  
  
• They show fake dashboards with “daily profits.”
  
  
• After a few weeks, the platform shuts down.
  

Example: In 2022, apps like “Bitcoin Mining Pakistan” appeared on Google Play. They claimed you could mine Bitcoin from your phone. In reality, phones cannot mine Bitcoin—it’s just a trick to collect deposits.

How to avoid it:

• Remember: real mining requires hardware.
  
  
• Mobile mining apps are always fake.
  
  
• Check independent reviews before joining any platform.

7. Deepfake and AI-enabled Scams

In 2025, scammers started using artificial intelligence (AI) to trick investors.

How they work:

• Deepfake videos copy the voice and face of trusted people.
  
  
• AI chatbots impersonate support teams.
  
  
• Victims are convinced they’re speaking with real officials.
  

According to recent reports, AI-driven scams rose 456% in 2025. This includes crypto fraud, where scammers used deepfake voices of family members to demand emergency transfers.

Example: In April 2025, a Lahore businessman received a video call from what looked like his cousin asking for urgent USDT. Later, it was revealed to be a deepfake created by scammers.

How to avoid it:

• Always confirm requests directly through a phone call.
  
  
• Never trust investment advice from unverified video messages.
  
  
• Be extra cautious as deepfakes become more realistic.

How to Spot & Avoid Crypto Scams

Here are clear steps every Pakistani investor should follow:

1. Check the source: Type exchange URLs manually instead of clicking links.
   
   
2. Look for reviews: Google the platform name with the word “scam.” See what others say.
   
   
3. Avoid unrealistic returns: If someone promises 30% in a week, it’s a lie.
   
   
4. Protect your keys: Your seed phrase is like your house key. Never give it away.
   
   
5. Enable 2FA: Use authenticator apps, not just SMS.
   
   
6. Diversify safely: Don’t put all money in one unknown coin.
   
   
7. Follow FIA updates: FIA Cyber Crime Wing regularly posts scam alerts.
   
   
8. Educate others: Share what you learn with family and friends.

What to Do If You’ve Been Scammed

Even with precautions, mistakes happen. Here’s what to do:

1. Report to FIA Cyber Crime Wing: You can file a complaint online or at regional offices.
2. Collect evidence: Keep wallet addresses, transaction IDs, chat screenshots, and payment receipts.
3. Warn others: Share your experience in local crypto forums or Facebook groups. It may save others.
4. Secure your accounts: Change exchange passwords and enable 2FA.
5. Contact your bank or service provider: If you used JazzCash or Easypaisa, report suspicious transactions.
6. Seek legal help: Lawyers familiar with cybercrime can guide you through reporting and follow-up.

Remember: scammers rely on silence. The more people speak up, the harder it becomes for fraudsters to trick others.

Conclusion

Crypto can be rewarding. But the path is littered with scams, fake exchanges, phishing traps, Ponzi schemes, deepfakes, and more. Knowing the crypto scams to avoid isn’t just smart; it’s essential.

Stay informed and stay cautious. And share this article with friends and family so that together, we can beat scams step by step.

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