Why Crypto Scams Thrive: Unpacking Human Psychology

- Cointelegraph reports on psychological triggers leading to crypto scams. - Key tactics include urgency, trust exploitation, and targeting vulnerability. On June 13, 2025, Cointelegraph reported that psychological factors like FOMO and emotional manipulation contribute to significant financial losses in the crypto world, as scammers adeptly exploit these triggers. Such tactics can affect even experienced individuals within the unpredictable crypto ecosystem. The Cointelegraph report detailed several tactics scammers use to exploit these vulnerabilities. Firstly, they create a sense of urgency around seemingly lucrative yet fake opportunities. For instance, victims might "accidentally" receive login details to an exchange account displaying a large balance. Scammers then trick victims into depositing their own money to withdraw these supposed funds, which consequently leads to victims losing their deposits. This tactic preys on the desire for easy money and FOMO, causing individuals to override their cautious judgment. Fraudsters also conduct scams by exploiting positions of authority or close relationships. For example, an insider in a company might subtly alter the crypto payment system, an action that can divert millions to an unknown destination. Such betrayal takes advantage of the natural trust people place in colleagues, a phenomenon known as the "trust trap." Furthermore, scammers often target individuals experiencing financial or emotional vulnerability, leveraging victims' desperation, greed, or hope. For example, the ransomware gang REvil targeted companies insured against such attacks because REvil knew these companies were more likely to pay the ransom due to the significant repercussions of data exposure. To combat these threats, the Cointelegraph article stresses that people should learn from others' mistakes and enhance security practices. It highlighted Dutch law enforcement's takedown of the Hansa darknet market as a prime example. Instead of immediately shutting down the market, authorities monitored transactions for a month. This approach allowed them to gather crucial intelligence on thousands of users, which ultimately led to widespread arrests. This case demonstrates how proactive observation and a well-executed strategy can effectively counter scammers. The Cointelegraph report concludes that human vulnerability, rather than a lack of intelligence, causes people to fall for crypto scams. Understanding the psychological tactics scammers employ is key to prevention, and industry efforts also play a role. For instance, the report mentioned that Crystal, a blockchain intelligence firm, assists governments and crypto businesses in investigating cryptocurrency crimes by providing tools like real-time transaction monitoring and aggregated transaction visualization. Ultimately, education, vigilance, and developing stronger security habits offer the most effective protection in the digital asset world. According to CoinMarketCap on June 13, as of 12:00 UTC, Bitcoin (BTC) was trading at $30,212, with its 24-hour trading volume down by 1.5%.