Bitcoin has erased all the gains it had made in 2025 – Copyright AFP Yuri CORTEZ
Fraudsters make use of different tactics to steal digital assets worth millions from unsuspecting investors. Recent reports reveal that AI-fuelled crypto scams soared 456% between May 2024 and April 2025.
For those who hold digital currencies, what measures can be taken to improve crypto security?
Lead Analyst at CryptoWinRate, Muhammad Talha, tells Digital Journal how scammers are increasingly using sophisticated schemes to trap cryptocurrency holders, and the steps you can take to prevent them.
Platform checks are crucial
The most basic defence against theft starts with verifying where you trade, Talha says. “Legitimate cryptocurrency exchanges maintain proper registration with financial authorities and display clear contact information,” he states. “Before depositing any funds, check if the platform has appropriate licences from regulatory bodies, such as the Financial Conduct Authority in the UK.”
Talha highlights established exchanges with substantial trading volumes and solid user ratings as safer options for anyone buying or selling digital currencies.
“The absence of physical address details or customer service options should raise immediate alarm bells,” he notes. “A simple check can save your entire investment.”
No investment can guarantee fixed profits
Claims of guaranteed returns ranked high among warning signs in Talha’s assessment. “Cryptocurrencies remain highly volatile assets, and no legitimate investment can guarantee specific returns,” says Talha. The analyst spotted promises of fixed high yields with minimal risk discussion as telltale signs of scams targeting newcomers to digital currency markets.
Talha advises traders to reject any opportunity claiming guaranteed profits regardless of market conditions. “If someone guarantees you 20% monthly returns on your crypto investment that person is not being truthful with you. Markets simply do not work that way.”
Private keys need protection
Keeping access credentials secure forms another critical safety measure. “Your private keys should never be shared with anyone under any circumstances,” Talha warns. “Store them offline in hardware wallets whenever possible.”
The security of cryptocurrency holdings depends completely on protecting private keys from unauthorized access. Many victims reported criminals posing as technical support staff requesting wallet access or seed phrases to “fix” non-existent problems.
Hardware wallets received strong backing from Talha for storing larger cryptocurrency amounts away from online threats. “For smaller amounts consider using reputable mobile wallets with two-factor authentication enabled at minimum,” he advised.
Do your homework before buying
Understanding what you’re buying represents an essential protection layer. “Take time to understand the cryptocurrency project before investing your money,” recommends Talha. “Read the whitepaper, examine the team backgrounds, and check independent code audits.”
The crypto expert stressed investors should grasp basic blockchain concepts before putting money into any digital asset. Sophisticated scams often use technical jargon to mask fraudulent schemes aimed at people unfamiliar with cryptocurrency fundamentals.
His warning leaves no room for misunderstanding: “If you cannot explain what problem the project solves or how it works, you should not invest in it.”
Security settings matter
Strong account protections round out the defence strategy. “Two-factor authentication should be considered the bare minimum security measure for any crypto account,” says the Talha. He favours authenticator apps over SMS verification that scammers can bypass through SIM swapping attacks.
Strong, unique passwords for each platform remain essential, according to the expert who dismissed typical excuses for password reuse. “Password managers make this easy, so there is no excuse for reusing passwords across different exchanges,” he states.
Knowledge stands as the best defence against cryptocurrency scams, Talha concludes. “The technology is still new, and scammers exploit knowledge gaps. Taking time to learn the basics will protect your investments far better than chasing quick returns.”