tl;dr

Cybercriminals are increasingly impersonating blockchain security companies to steal private keys and frame victims, complicating recovery efforts. In May 2025, over $244 million was lost to such scams, with total losses exceeding $2 billion for the year. Fraudsters lure victims by posing as trusted...

Hackers are increasingly impersonating blockchain security firms to steal cryptocurrency private keys while simultaneously framing victims, exploiting urgency and misplaced trust to maximize their fraud. In the troubling landscape of 2025, over $244 million was lost in May alone to such scams, with total losses surpassing $2 billion for the year — a stark indicator of how sophisticated and damaging these schemes have become.

Cybercriminals often present themselves as trusted blockchain security companies on social media platforms, using fake signature-checking tools that mimic legitimate services to deceive users. They go even further by copying profiles of real security experts to bolster their credibility. This tactic exploits the panic and haste victims feel, making it difficult for them to think critically before falling prey.

These attackers not only steal assets but also plant fabricated evidence to implicate victims in fraudulent activities. This dual-threat complicates law enforcement’s ability to investigate and recover funds and inflicts further psychological stress on victims. As a preventive measure, experts advise victims to stay calm, avoid trusting unsolicited assistance, and to publicly share their wallet addresses in full or partial form. Doing so assists investigators in validating ownership and preventing wrongful accusations during investigations.

The rise in these impersonation scams highlights the necessity for crypto users to exercise heightened caution with unsolicited contacts and unfamiliar tools, remembering that even apparent “help” may be a trap designed to rob and frame them simultaneously.

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The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.
 13 Jun 25
 13 Jun 25
 13 Jun 25