AI Crypto Pump-and-Dump Scams
Scammers use AI-generated hype, fake influencers, and bots to manipulate cryptocurrency prices, then disappear with investors' money.
What is this scam?
Fraudsters create fake cryptocurrencies or hype worthless tokens using AI-generated content, fake influencers, and bot networks. They artificially inflate the price (pump), then sell their holdings when real people buy in (dump), crashing the price and leaving victims with worthless tokens.
AI makes this scam more effective by:
- Generating thousands of fake social media posts
- Creating convincing fake influencer accounts
- Writing professional-looking whitepapers
- Producing fake news articles and testimonials
🔍How This Scam Works
- Token creation: Launch a new cryptocurrency or NFT project
- AI content generation: Create website, whitepaper, social posts using AI
- Fake influencers: Use AI-generated faces and accounts to promote token
- Bot networks: Automate thousands of posts creating buzz
- FOMO campaign: "Next Bitcoin!" "Get in early!" "Limited time!"
- Price manipulation: Buy token to artificially increase price
- Dump: Scammers sell all holdings at peak, crashing the price
- Disappearance: Delete accounts, abandon project
🚩Red Flags to Watch For
- •Brand new token with no track record
- •Anonymous or fake team members (reverse image search profile pics)
- •Promises of guaranteed returns or "to the moon" language
- •Aggressive marketing campaign appearing suddenly
- •Whitepaper with vague technical details
- •Pressure to buy immediately before "price explodes"
- •Celebrity endorsements that seem fake or unexplained
- •Suspicious social media activity (all accounts created recently)
🛡️How to Protect Yourself
- 1Research the team—verify real people with LinkedIn, past projects
- 2Read the whitepaper critically—does it make technical sense?
- 3Check blockchain explorer—who holds the tokens? (Concentration = risk)
- 4Reverse image search team photos—are they stock photos?
- 5Look for audits from reputable firms (CertiK, Trail of Bits)
- 6Join community Discord/Telegram—do real people exist or just bots?
- 7Start tiny—only invest what you can afford to lose completely
- 8Be skeptical of anything promising quick riches
📞If You've Been Targeted
If you've been scammed:
- Accept the loss - Crypto scams are nearly impossible to reverse
- Document everything - Wallet addresses, websites, social posts
- Report to exchange where you bought the token
- Report to FBI IC3 (ic3.gov) or local cybercrime unit
- Report to FTC (reportfraud.ftc.gov)
- Warn others - Post on Reddit, Twitter with scam details
- Monitor your wallet - Scammers may have access to your keys
- Learn from it - Understand what red flags you missed
Important: Beware of "recovery scams" where new scammers promise to recover your lost crypto for a fee.
🌍Report & Get Help
Report fraud and get support through these official resources in your country:
🇺🇸United States
- FBI IC3
Report crypto fraud
- SEC Crypto Enforcement
Report crypto scams
- FTC Crypto Scams
Report and learn about scams
🇬🇧United Kingdom
- FCA ScamSmart
Crypto warning list
- Action Fraud
Report crypto fraud
📞 0300 123 2040
🇨🇦Canada
- Canadian Anti-Fraud Centre
Report crypto scams
📞 1-888-495-8501
🇦🇺Australia
- Scamwatch Crypto
Report crypto scams
- ASIC
Check crypto warnings
Learn More
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