Social engineering in crypto, explained In the world of cryptocurrency, security goes beyond just p
Social engineering in crypto, explained
In the world of cryptocurrency, security goes beyond just protecting your wallet with a password or private key. One of the most deceptive and increasingly dangerous threats to crypto users today is social engineering.
While you might think of cyberattacks as highly technical affairs, social engineering manipulates the most vulnerable aspect of security: human nature.
At its core, social engineering refers to the act of manipulating people into divulging confidential information or granting unauthorized access to systems.
Unlike traditional hacking, which typically exploits technological vulnerabilities, social engineering targets the human element. Attackers rely on deception, psychological manipulation and trust-building tactics to deceive their victims. By exploiting psychological weaknesses, attackers can trick individuals into giving up their private information, credentials or funds.
In the world of crypto, this kind of manipulation is especially dangerous because transactions are irreversible, and the decentralized nature of cryptocurrencies can make it even harder to recover lost funds. Once funds are transferred or access is granted, it’s almost impossible to reverse the action. This makes crypto users a prime target for social engineering attacks.
Did you know? In 2024, phishing and spoofing topped the US Federal Bureau of Investigation’s list of reported cybercrimes, with victims also losing over $6.5 billion to crypto-related investment fraud, according to the Internet Crime Complaint Center.
Anatomy of a social engineering attack: Step by step
Social engineering attacks trick crypto users by gaining trust, creating urgency, and then stealing sensitive info to drain their wallets.
Step 1: The setup — Scouting for targets
Scammers start by lurking on social media platforms such as X, Discord, Telegram and Reddit.
They look for:
- Newbies asking for help
- People showing off their gains or NFTs
- Users who accidentally leak wallet addresses or emails.
The more info they gather, the easier it is to craft a personalized attack.
Step 2: The approach — Gaining trust
Next, they reach out, pretending to be:
- A helpful support agent (e.g., from MetaMask, Binance)
- A famous crypto influencer
- A friend or community manager.
They copy profile pictures, usernames (sometimes with slight changes), and even fake verification badges to seem real. This is all about lowering your guard.
Step 3: The hook — Creating urgency or fear
Now they trigger your emotions with urgent, scary or tempting messages:
- “Your wallet is at risk — act now!”
- “Exclusive airdrop ending in 5 minutes!”
- “We detected suspicious activity — please verify your account!”
- They use fear, excitement and time pressure to force you into quick action without thinking.
Step 4: The ask — Extracting sensitive info
This is where the real trap springs. They ask you to:
- Share your private key or seed phrase (a big red flag)
- Click a link to a phishing site that looks like MetaMask, Phantom or OpenSea
- Approve a suspicious smart contract that drains your wallet
- Send a small amount of crypto to “verify your account” or “unlock” funds.
If you fall for this step — game over.
Step 5: The heist — Draining your crypto
Once they get your sensitive info or get you to sign a malicious transaction, they:
Victims usually realize the theft too late; sadly, funds are gone forever in most cases.
Did you know? Onchain analyst ZachXBT uncovered an additional $45 million stolen from Coinbase users in early May 2025 through social engineering scams — a tactic he says is uniquely prevalent on the platform compared to other crypto exchanges.
Common types of social engineering scams in crypto
Scammers target crypto users via phishing, impersonation, giveaway and romance scams, and fake investment platforms.
Phishing
Phishing remains one of the most prevalent forms of social engineering in the crypto world. This can take several forms but typically involves fake websites, apps or emails designed to look legitimate.
- Fake wallet apps: Scammers create fake versions of popular wallet apps like MetaMask or Trust Wallet. They trick users into downloading these apps, which then steal the private keys and funds stored within them.
- Fake exchanges: Similarly, attackers might impersonate well-known cryptocurrency exchanges. Victims are sent a link to a phishing site that looks identical to a legitimate platform, such as Binance or Coinbase. Once users log in and input their details, the attacker gains access to their funds.
- Fake MetaMask pop-ups: One common trick involves fake pop-ups that prompt MetaMask users to enter their seed phrase or private keys, thereby giving scammers control over their…
cointelegraph.com