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  • Not all giveaways are real: scammers often promise a big prize in exchange for a small “processing fee” or providing personal information.

  • Pay attention to fake social media profiles or websites that try to pretend to be official. Fraudsters can also contact you directly, for example through WhatsApp, Telegram or Discord.

  • If you believe that you have become a victim of fraud, please immediately report the incident to your local authorities and Binance support team.

Be carefull. Learn how to spot crypto giveaway scams in the latest installment of Binance's How to Spot a Scam series, covering the key signs of these scams and how to protect your crypto assets.

Social media giveaways are a popular method of marketing. Prizes can range from something as simple as a grocery store gift card to something as extraordinary as a new Lamborghini or millions of dollars in cryptocurrency.

But beware: not all pranks are real.

Like, follow a few pages, and pay a small “processing fee” to receive your prize! Sounds simple, right?

It could actually be a hoax: a scheme popular among scammers in which criminals promise huge prizes for a small fee or personal information. In this article, we'll look at how these schemes work and tell you how to recognize and avoid them.

How do scams work?

1. Creating a fake website and social media account

Prank scams are usually carried out through a fake social media profile. In more complex cases, scammers create a website that looks like a real cryptocurrency company or that appears to be advertised by a celebrity.

The description, username, and profile photo of a social media account may be very similar to the real account. And imitation sites are often difficult to recognize. The main differentiators are a different URL and slight differences in UI design compared to the real site.

2. Announcement of a fake draw

“In disguise,” scammers announce their pranks on social networks or write directly to victims.

This “giveaway” usually promises a significant amount of cryptocurrency to anyone who completes specified actions, such as sending a small payment. Fraudsters can also take advantage of real crypto projects that are gaining popularity: they pretend to be selling new tokens.

3. Request for cryptocurrency or personal data

To participate in the “raffle,” victims need to provide information about themselves: email address, phone number and crypto wallet address. Fraudsters can then use this information in future scams or sell it on the dark web.

After collecting the victim’s personal information, scammers charge a “processing fee,” supposedly to verify their identity. This payment (usually in cryptocurrency) is the main prize for the scammers.

Remember that real giveaway organizers never ask winners to pay to receive their prize.

4. Disappearance

When victims fulfill all the requirements and send payment, the scammers simply disappear, delete their website and social media accounts, and the promised prize never arrives. At this stage, the likelihood that victims will be able to get their money back is negligible.

Examples from life

Example 1. “The largest cryptocurrency draw from TESLA: $100,000,000”

A user—let's call him Jack—comes across a YouTube video promoting a “giveaway” supposedly from Tesla. The video provides a link to a website that promises double income for anyone who transfers cryptocurrency to the specified wallet address.

Jack follows the site's instructions and sends one BTC to the address, expecting to receive two BTC. Jack never receives the promised cryptocurrency and realizes that he was deceived.

In this example, the characteristic features of a fake giveaway are clearly visible: a website imitating the website of a well-known company (in this case Tesla), an announcement of a huge prize, illiterately written text and a demand for payment for participation.

Example 2: BINANCE Gift Box

One user—let’s call him Mark—writes to a Telegram account that introduces itself as a Binance employee. The “employee” sends a picture of a reward box, by opening which you can supposedly receive up to 100 USDT.

To receive the reward, the “employee” explains, Mark needs to scan a QR code and send 2 BNB to a specific wallet address. As a result, Mark loses his BNB and does not receive any reward.

How to avoid becoming a victim of cryptocurrency scams

Check website addresses and social media accounts

Before entering a contest or sweepstakes, always check the legitimacy of the websites and accounts for those sweepstakes. Look for official accounts purporting to be running the giveaway, and pay attention to anything suspicious: misspellings, unprofessional design, or strange URLs.

Beware of unrealistic offers

If something looks too tempting, then it is most likely a trap, especially in the context of cryptocurrency giveaways. Most "sweepstakes" with big prizes where you have to pay to process your entry or verify your identity are scams.

No matter how attractive the offer, it is always better to stop and think twice before sending cryptocurrency to any giveaway address.

Protect your personal information

When entering sweepstakes or contests, it's best to use a separate email address or phone number to avoid giving away your main contact information.

If you have become a victim of scammers

  • If you have provided sensitive information, change your passwords and immediately freeze your bank and any other compromised financial accounts.

  • Report to law enforcement authorities. But remember that the chances of them returning your money are very slim.

  • Report the incident to the moderators of the site, application or social network through which the fraudster contacted you. Provide his profile name and any information that might protect other users.

  • Please report it to us immediately by following the instructions in How to Report Fraud to Binance Support.

We also encourage all users, new and old, to review the rest of our anti-cryptofraud coverage to help protect yourself from common threats.

Additional Information

  • (Blog) How to Recognize a Scam: A Complete Guide to Identifying the Most Common Cryptocurrency Scams

  • (Blog) How to Recognize a Scam: Crypto Investment Scams to Watch Out for

  • (Blog) How to recognize a scam: the main signs of an impostor scam

  • (Blog) How to recognize fraud: how to spot fraudulent vacancies

Risk Warning and Disclaimer: The following materials are provided “as is” without warranty of any kind for general reference and educational purposes only. This information should not be considered financial advice or a recommendation to purchase any specific product or service. The value of digital assets can be volatile. The value of the funds invested may go up and down. You may not get your invested funds back. You are solely responsible for your investment decisions. Binance is not responsible for your possible losses. This information does not constitute financial advice. For more information, please review our Terms of Use and Risk Disclosure.