How to Identify and Avoid Crypto Scams in Latin America: A Prevention Guide
The growth of the crypto industry in Latin America has created real opportunities for investment, financial inclusion, and access to global markets. More people are buying Bitcoin, USDT, and other digital assets as part of their financial strategy.
However, alongside the growth of the ecosystem, crypto scams and digital fraud cases have also increased. Thousands of new users are being contacted by scammers who use social media, messaging platforms, and fake websites to steal funds.
In this guide, we explain the main types of cryptocurrency scams currently affecting users in Latin America, how scammers operate, and what steps you can take to protect your money.
Context: Digital Fraud Now Surpasses Physical Theft
Globally, digital fraud has surpassed traditional physical theft in many countries. In Latin America, online fraud accounts for more than 50% of total financial fraud losses, according to recent cybersecurity industry reports.
The financial sector is one of the primary targets for digital scammers, including:
Banks
Fintech companies
Investment platforms
Cryptocurrency exchanges
Why is crypto fraud so attractive to criminals? Because the digital asset moves quickly, transactions are international, and many people are entering the world of digital assets for the first time without prior experience.
It is important to clarify this from the beginning: the problem is not blockchain technology or cryptocurrencies. The problem is scammers who use these systems as tools to commit fraud.
Main Types of Cryptocurrency Scams in Latin America
Based on real cases reported by users in the region, these are the most common fraud patterns.
1. DEX Token Scams (Rug Pulls and Locked Tokens)
The user sees an Instagram advertisement about crypto education or investments in IDOs. They are then invited to WhatsApp or Telegram groups where supposed advisors show consistent profits. Initially, small real trades may be allowed to build trust. Later, they recommend an “exclusive” token that supposedly has strong growth potential.
The user purchases the token on a DEX. The price increases, and visible gains appear in the interface. However, when attempting to sell:
There is insufficient liquidity.
They are asked to pay additional gas fees.
They are required to pay a supposed tax.
They are asked to send more money to unlock the funds.
This is the point where systematic fund extraction begins. In many cases, this is a rug pull, where token creators remove liquidity, and the asset becomes worthless.
2. Tax Payment or Additional Fees to Withdraw Funds
The user is contacted by a supposed advisor or joins a trading community. They deposit money and begin to see profits displayed within a platform or simulated dashboard. When attempting to withdraw funds, they are informed that they must pay a tax, institutional commission, or unlocking fee.If the victim pays, a new requirement appears. The cycle continues until the individual stops sending money.
Common phrases used in this type of fraud include:
Your withdrawal is suspended until the tax is paid.
You must cover an institutional commission.
You need to pay a fee to release your profits.
No legitimate exchange charges upfront taxes to allow the withdrawal of your own funds.
3. Fraudulent External Platforms and Fake Investments
The victim is contacted via Telegram or WhatsApp with promises of guaranteed returns. They are instructed to purchase USDT through P2P and then send it to an external platform, online casino, or unknown investment application. Scammers guide them step by step until the money reaches a wallet controlled by the fraudsters.
After that, they block the user or disappear.
Warning signs include:
Promises of guaranteed returns.
Instructions to send funds outside the exchange
Urgency or pressure to transfer quickly.
Platforms without regulation or verifiable reputation.
Once a blockchain transaction is confirmed, it cannot be reversed.
4. Exchange Impersonation and Identity Fraud
The user is contacted by someone claiming to be a broker, agent, affiliate, or official exchange support representative. They use logos, fake certificates, and manipulated screenshots to appear legitimate. They promise investments, fund recovery, or account unlocking in exchange for external payments.
Common warning signs include:
Direct contact via WhatsApp or Telegram.
Requests for payments outside the official platform.
Unverifiable documents or certificates
Promises to recover funds in exchange for money.
Legitimate exchanges do not contact users via private messaging to request deposits and do not charge external fees to release funds.
The strategy behind the scams
Cryptocurrency scams do not begin with direct theft. They begin with trust-building.
Scammers create communities, display fake testimonials, and simulate successful operations to generate credibility. In some cases, they allow small real profits to reinforce the perception of legitimacy.
Once the victim believes they have earned significant profits, an artificial barrier is introduced, such as a tax or additional fee. At that moment, the person does not feel they are sending money at risk but rather protecting what they believe is already theirs.
Fraud does not sell an investment. It sells the illusion of a guaranteed profit.
Best Practices to Avoid Cryptocurrency Scams
Protecting your digital assets requires sound judgment and basic security habits.
Never send cryptocurrency based on instructions from third parties contacting you through social media.
Be skeptical of any promise of guaranteed returns.
Do not pay external taxes or commissions to withdraw your own funds.
Do not send money to unknown wallets or platforms without a verified reputation.
Always verify information through official exchange channels.
Prevention is the most powerful defense against digital fraud.
Final thoughts
Cryptocurrencies are an innovative financial tool that offers real opportunities for growth and global access. However, like any financial system, they require education, critical thinking, and responsibility.
Blockchain technology is not a risk. The real risk lies in misinformation and manipulation.
Operating safely means questioning, verifying, and pausing before transferring funds. Crypto security education is the strongest defense against digital fraud.
If this guide helps even one person avoid sending money to a scammer, it has achieved its purpose.
