By XMRWallet Team · Published · 6 min read
According to Chainalysis data, cryptocurrency fraud and theft losses have reached billions of dollars annually, with scam tactics evolving continuously as adoption grows. Monero holders and crypto users broadly must stay informed about the specific attack patterns targeting the space. This is Part 1 of our crypto scam awareness series. Part 2 covers pump-and-dump schemes, airdrop phishing, and crypto copycats.
1. Cryptojacking
In June 2021, the Crackonosh malware was found to have generated approximately $2 million in Monero by hijacking computing power through pirated game downloads. Infected versions of popular titles like Grand Theft Auto V, Far Cry 5, and NBA 2K19 were distributed on pirate sites and silently ran mining processes in the background on victims' devices.
Cryptojacking is the unauthorized use of someone's device — PC, phone, or tablet — to mine cryptocurrency without their knowledge. Monero is a frequent target because its RandomX algorithm runs efficiently on standard CPUs without specialized hardware, making consumer devices profitable to hijack. Beyond infected downloads, hackers also inject malicious scripts into websites that trigger browser-based mining when users visit the page.
Cryptojacking doesn't steal your files or credentials directly — but it severely degrades device performance, causes excessive CPU load, increases electricity consumption, and can cause overheating that damages hardware. Because Monero mining doesn't require a GPU, the activity can run for extended periods without being obvious.
How to protect yourself:
- Use reputable antivirus and anti-malware software on all devices, kept updated
- Install browser extensions like minerBlock, NoCoin, or Anti Miner to block mining scripts
- Use a trusted ad blocker to reduce script injection risk
- Only download software from official verified sources — never pirate sites
- Monitor CPU usage for unexplained spikes when browsing or idle
2. Pig Butchering (Romance Investment Scams)
The FBI has reported that romance-related investment scams — known as "pig butchering" — cost victims over $1 billion in 2021, with losses growing substantially in subsequent years. The name comes from the concept of fattening a pig before slaughter: scammers build trust over weeks or months before executing the fraud.
Scammers — often operating from organized fraud operations — contact victims through social platforms, dating apps, or direct messages, and build a credible relationship over time. They never ask for money directly. Instead, they gradually introduce the topic of crypto investment, share "success stories," and guide the victim to a fraudulent trading platform or app that displays convincing but entirely fabricated gains. When the victim tries to withdraw, they are told to pay fees, taxes, or deposits — and ultimately receive nothing.
How to protect yourself:
- Be cautious with unsolicited online relationships that progress to crypto investment suggestions
- Independently verify any investment platform through official sources before depositing funds
- Never invest through a platform recommended solely by someone you have only met online
- Never share personal, financial, or wallet information with new online contacts
- Report suspected pig butchering operations to the FBI's Internet Crime Complaint Center (IC3)
3. Rug Pull
In November 2021, investors lost over $3.38 million in the Squid Game token scam — a token promoted as a play-to-earn game based on the popular Netflix series (without affiliation). The token's price spiked dramatically before the developers withdrew all funds from the liquidity pool and disappeared, leaving investors with worthless tokens.
Rug pulls involve creating a seemingly legitimate crypto project, attracting investor funds, and then exiting without warning — draining all liquidity. They are most common in the DeFi and memecoin space, where new tokens can be launched quickly, smart contracts may not be audited, and initial hype drives buying before due diligence is done.
How to protect yourself:
- Research the development team — verifiable identities with a track record are a positive signal
- Look for independent security audits of the smart contract code
- Check on-chain token distribution — concentrated holdings by a small number of wallets is a red flag
- Be skeptical of tokens that rise extremely fast with no fundamental basis
- Treat celebrity or influencer promotions of new tokens with extra caution
- Only invest amounts you can afford to lose entirely
Staying informed about evolving scam tactics is one of the most effective defenses available. Combine that knowledge with a secure, non-custodial wallet. XMRWallet is a free, open-source, browser-based Monero wallet — no registration, no downloads, full control of your private keys. Continue to Part 2 for pump-and-dump schemes, airdrop phishing, and crypto copycats.
Frequently Asked Questions
What is cryptojacking and how does it affect Monero users?
Cryptojacking is the unauthorized use of someone's device to mine cryptocurrency. Monero is frequently targeted because RandomX runs on standard CPUs without specialized hardware. Delivered via infected downloads, malicious browser scripts, or phishing links. Protection: antivirus software, mining-blocking browser extensions, ad blockers, and only downloading from official sources.
How do I spot a rug pull before investing?
Key warning signs: anonymous team with no verifiable identity; extremely rapid price growth; heavy influencer promotion; inability for most investors to sell; no security audit; concentrated token ownership in a few wallets. Protection: research the team, require an audit, check on-chain distribution, and invest only what you can afford to lose entirely.
