Field Guide to Crypto Risks and Red Flags

Why This Guide Exists

Crypto is exciting, but it’s not risk-free. You might not run into bears or coyotes, but in the digital ecosystem you could still encounter rug pullers, phishing traps, shills hyping risky tokens, or finfluencers promising easy wins.

Crypto speaks its own language, but you don’t need to learn it alone. We created this guide to help you stay informed and in charge of your choices.

This Q4 2025 edition of Newton Learn reflects the most current regulatory context, Canadian developments, and common scam patterns. We publish refreshed guides regularly to help Canadians stay informed as the digital asset landscape evolves.

Crypto Creatures to Watch For

• Phishers: Deceptive links that steal your info
  
• Shills: Promoters pushing risky or fake tokens
  
• Finfluencers: Influencers who promote tokens without full disclosure
  
• Imposters: Scammers pretending to be support or friends
  
• Rug Pullers: Project founders or teams that disappear with your funds

Common Fraud Categories

1. Account Takeovers
   
2. Investment Traps
   
3. Emotional Manipulation

The network is decentralized, but you’re not alone. Start smart and stay sovereign. First stop on the trail? A closer look at the crypto creatures that cause the most trouble.

Phishing Scams

Don’t Take the Bait
Phishers proactively play a numbers game, and can be found anywhere there’s an inbox. They cast the widest net possible, attempting to trick unsuspecting email recipients into revealing login credentials, private keys, or personal seed phrases.

Imposter messages provoke a fight-or-flight response, triggering urgency or fear that pressures individuals into acting or clicking quickly. These malicious messages typically mimic businesses the receiver already interacts with. Once a link has been clicked, phishers are granted access, obtaining personal data they can use to drain the user’s crypto wallets or compromise their traditional accounts and even identity.

Red Flags

• Fake login pages or messages claiming your account is locked
  
• Website URLs that look nearly identical to the real one
  
• Emails and text messages asking for wallet access or verification

How to Spot Danger Before It Spots You

• Type platform URLs directly, don’t click unexpected links unless you have enabled anti-phishing code, like Newton provides so you know when you're hearing from us.
  
• Never share your seed phrase, even with “support”. A credible platform would never ask for this information.
  
• It’s worth the extra minute it takes to set up two-factor authentication on any platform that supports it.
  
  

Illustrative Example: After clicking a link in an email that looked legitimate, the receiver was directed to a login page that mimicked a wallet provider they use. The wallet customer entered their credentials, only to watch the funds drained without access to stop them.

Impersonation and Fake Support Scams

They Look Official But Aren’t
These scams involve fraudsters pretending to be support agents, team members, or even one of your friends. They may offer help, send fake documents, or request remote access to your device in order to take control and drain any connected wallets. Watch for impersonators claiming to be Newton support, Newton Pro advisors, or trusted contacts.

Red Flags

• Direct messages from accounts claiming to be “official support”
  
• Pressure to act quickly or install apps or share personal information
  
• Spoofed emails or websites with barely noticeable differences

Not All Trail Markers Are Trustworthy

• Only reach out to support through official channels.
  
• Never give remote access or install unknown tools.
  
• Double-check emails, domains, and profiles for slight misspellings.

Illustrative Example: One victim deposited cryptocurrency into a fake platform promoted through a fraudulent news article. When they tried to withdraw, they were told to send more to “unlock” their bonus and then the site disappeared.

ICO and Fake Token Scams

Shiny Tokens, Shady Business
The rug pullers behind fake ICOs create the illusion of legitimacy through slick websites, whitepapers, and social media buzz to get you to buy into tokens that have no real value or roadmap.

Red Flags

• Anonymous teams or vague project goals
  
• Overpromises like “100x gains” or “can’t lose”
  
• Urgency to invest before a limited-time offer ends

Read the Signs Before You Get Lost

• Research the team and whitepaper to Do Your Own Research (DYOR).
  
• Check if the token is listed on credible exchanges and registered crypto trading platforms.
  
• Be skeptical of any offer that guarantees returns.

Illustrative Example: An investor sent funds to a flashy ICO with no verified team or product. Within days, the project vanished and the website was gone.

Celebrity Endorsement Scams

If a Celebrity Says It, Double-Check It
Scammers have been known to use the names or photos of celebrities and politicians to promote crypto platforms or fake air drop giveaways. Some even create AI-generated videos, called deepfakes, that look and sound very real.

Red Flags

• Viral videos that claim you’ll double your crypto
  
• Investment links tied to celebrities
  
• “Limited time only” offers or exclusive endorsements
  

Look Closely at Who’s Leading

• Don’t rely on financial advice from social media or “celebrity” endorsements.
  
• Research platforms and the founders independently.
  
• If it sounds too good to be true, it probably is.

Illustrative Example: A project website claimed that a cofounder of a well-known stablecoin was backing their new crypto. When the public figure was contacted, he had no knowledge of the project’s existence.

AI Scams

What to Watch For When Nothing Feels Off, But Is
With AI tools like voice cloning and deepfake video, fraudsters are faking endorsements to promote questionable crypto platforms. These setups may seem advanced, but they often follow familiar fraud patterns designed to gain your trust and access your funds.

Red Flags

• Video or audio that seems unnatural or overly polished
  
• “AI-powered” bots offering guaranteed returns
  
• Chat interfaces that steer you toward risky deposits
  

Don’t Be Fooled by the Filters

• Be on the lookout so you can spot deepfakes and voice clones.
  
• Avoid platforms that can’t clearly explain their technology.
  
• Verify anything unusual through official sources.

Illustrative Example: A deepfake Elon Musk video encouraged users to send crypto using a QR code. Once they sent funds, they never heard back.

Employment Scams

A Job Offer With Strings Attached
Crypto job scams promise easy income but require upfront payment. Victims may be asked to purchase software, pay for background checks, or deposit crypto to start working.

Red Flags

• Jobs that ask for payment before you start
  
• Interviews conducted only by text or chat apps
  
• Tasks that require deposits into a crypto wallet

Avoiding Job Offer Traps

• Confirm job offers through the company’s official website and team pages.
  
• Be cautious of roles that seem too good to be true.
  
• Never send money or crypto assets as a condition of employment.

Illustrative Example: A person was asked to rate hotels for a crypto platform. After depositing $17,000, the platform locked their account and requested more money to unlock withdrawals.

Romance Scams

When the Scam Comes With Compliments
Some scams take time. Pig butchering happens when fraudsters build a victim’s trust before “slaughtering” their finances. The romance racket often starts with friendly chats that build emotional connection, slowly earning trust before bringing up money, often in crypto. These conversations can stretch over weeks or even months before the financial request appears.

Red Flags

• Emotional stories followed by a request for crypto
  
• Excuses for not meeting in person or over video
  
• Messages that escalate quickly into romantic language

Keeping Your Feelings and Funds Safe

• Avoid sending crypto to someone you have not met in person.
  
• Use a reverse image search to check profile photos.
  
• Ask someone you trust if the situation feels strange.

Illustrative Example: A scammer convinced a man to send $64,000 for a “shared crypto investment.” When he tried to access the tokens, he was told he owed fees and eventually lost everything.

Before You Go: Stay Sharp, Stay Sovereign

Crypto can feel like new territory, but risk isn’t limited to digital assets. Scams show up everywhere, not just in crypto. This guide gives you a solid compass to help you stay aware and one step ahead.

By asking the right questions, you can catch red flags early. Always double-check links, and no matter the environment, if something feels too good to be true, it probably is.

If you spot a scam, report it to the Canadian Anti-Fraud Centre or your provincial regulator.

At Newton, we believe informed users are empowered users. That’s why we created this field guide and offer support straight from the source. So before you click, connect, or commit, take a breath. You’re not lost in the Web3 wilds. With a better map and the tools to navigate, you can move forward with confidence.

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