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How Ripple combats crypto scams and fraud
Crypto scams are a real concern and an unfortunate byproduct of cryptocurrency’s growing traction worldwide. These scams include fraudulent social media accounts that share crypto giveaway ads, email phishing attempts, fake job offers, and other illicit activity. Ripple is deeply committed to combating crypto scams, and we are taking a proactive and aggressive stance against crypto fraud, working alongside other leaders across various cryptocurrency communities.
Ripple actively fights cryptocurrency scams
We are attacking the problem along many fronts, including:
Detection
Proactively scanning the web, alongside third-party specialists, to quickly detect scams before they reach potential victims.
Disruption
Alerting web hosting services, search engines, social media platforms and law enforcement to potential scam activity.
Partnership
Partnering with other blockchain companies and organizations to coordinate scam combatance activities across the industry.
Ripple’s CEO, Brad Garlinghouse, is increasingly being used in deepfakes and other crypto scams promising free XRP giveaways. Hear from the real Brad Garlinghouse, and remember: Ripple will never ask you to send us XRP.
How to identify a crypto scam
Crypto scams can be difficult to spot. Here are our top tips for identifying, avoiding and reporting the most common cryptocurrency scams to ensure you and others don’t fall victim.
Social media profiles
Lack of a profile picture, odd account names, or terminology in the comments on a social media post that “loves” or “thanks” the company for giveaway winnings.
Social media comments
Social media comments are restricted or turned off altogether to discourage followers from commenting that it’s a scam.
Crypto fraud websites
Links to a fraudulent website or a crypto wallet address asking targets to send money.
Crypto giveaway scams
In order to receive a reward, you must first send money via digital wallet, credit card, or otherwise.
Unexpected communications
You are contacted unexpectedly or the message appears to be out of the blue.
Suspicious wallet activity
Unfamiliar crypto assets or other digital tokens appear in your wallet.
Promises of free crypto instantly
The request is “urgent” or you are being pressured to act quickly.
Testimonials of others earning free crypto
Fake testimonials - these can be particularly difficult to spot since scammers will use paid actors.
Scammer websites
The website or content has spelling or grammar errors.
How to avoid cryptocurrency scams
Always exercise due diligence before sending or receiving funds to validate the identity of the other party.
Visit the sponsoring company’s website and verified social media channels to confirm information about the event or promotion.
Be cautious with any promotion that requires funds or account information upfront. Real sweepstakes, crypto or otherwise, should be free.
Use updated browsers with built-in support for “Google Safe Browsing”, which will warn users of malicious websites or downloads.
Use a digital wallet service provider with transaction pre-screening that can notify users who try to send funds to a high-risk wallet.
Remember, if it sounds too good to be true, then it probably is.
How to stay up to date on the latest crypto scams
We highly recommend continuing to self-educate and stay on top of the latest crypto fraud schemes to help get ahead of and stop crypto crime. Remember, we are all in this together. Below are some additional recommended readings on the different types of crypto scams:
- Ripple Blog: How to Spot Crypto Giveaway Scams
- US Government Accountability Office (GAO): How to Detect Deepfakes
- US Department of Defense (DoD): Deepfake threats to organizations
- US Secret Service: Avoid Scams - Investment Fraud and Pig Butchering
- Federal Trade Commission (FTC): What to Know about Cryptocurrency Scams
- Federal Bureau of Investigation (FBI): Cryptocurrency Investment Fraud
- National Cybersecurity Alliance: Common Crypto Scams
- National Crypto Association (NCA): Staying Safe and Avoiding Scams
What to do if you’re affected by a crypto scam or fraud
If you suspect you’ve encountered crypto crime or fallen victim to a cryptocurrency fraud or scam, the decentralized nature of blockchains means that it is very difficult to recover assets. Carefully vet any entity that claims to be able to recover your assets.
The XRP Ledger is a decentralized system where no single entity has control. Ripple does not have the ability to stop or alter transactions on the XRP Ledger.
Crypto fraud reporting steps
Below are steps you can take to report scams to relevant entities:
- Report the scam to your digital asset service provider (e.g., exchange, custodian, wallet provider).
- Submit a complaint/report to the FBI Internet Crime Complaint Center (IC3), Federal Trade Commission (FTC), or Europol. In the US, you can also contact your local FBI Field Office.
- Submit the URL associated with the scam to Google Safe Browsing.
- Submit URL(s) and/or blockchain address(es) associated with the scam to Chainabuse or Security Alliance’sScam Bot.
- If the scam was promoted on social media, report it to the social media provider (e.g. X, YouTube, Facebook, Instagram, LinkedIn).
What are the most common types of cryptocurrency scams?
Impersonation: Scammers impersonate companies, brands, or public figures on websites, social media accounts, videos, etc., and create a sense of legitimacy by using copied logos, images, graphics, social media verification checks, lookalike social media handles, deepfakes, or legitimate video excerpts. Impersonators often take over verified social media accounts with high numbers of followers before changing the user information to that of the impersonated party.
Crypto Giveaway: Scammers pose as public figures promising free cryptocurrency via social media posts that include branding and images that look exactly like what the companies, individuals or government entities use. Victims are typically asked to send funds to receive additional funds in return.
Phishing: Scammers send emails or text messages that appear to be from a person or entity you know, often using urgency or coercion, asking to provide information, visit a website, or send money.
Exit Scam or Rug Pull: Scammers develop a cryptocurrency, maintain control of a large stake of that cryptocurrency, and then withdraw their funds and abandon the project to profit from investors. Other examples include fake versions of legitimate tokens, fake Initial Coin Offerings (ICOs), and presale scams where scammers offer worthless tokens to victims in pre-sales that appear exclusive.
Pig Butchering: Scammers connect with victims — typically via social media or dating apps, often exploiting a potential romantic relationship — encouraging them to make small investments that initially show impressive returns in an effort to build trust. Over time, the scammers convince the victim to increase the amount of their investments until the victim is unable to withdraw any funds.
Crypto Drainer: Scammers create a legitimate-looking cryptocurrency project that promises to provide free tokens to connected wallets but instead uses malicious code, often a smart contract, to “drain” all cryptocurrency from any wallets that are connected to it.
Want to learn how to spot the warning signs yourself? Read our guide to spotting and reporting crypto scams.