“Freebies” are often misused to scam people, and in the crypto space, airdrops serve as a similar tactic for scammers to steal assets by exploiting the victim's wallet address.
Now, with the coming of the bull run in late 2024 and 2025, we can expect to see an airdrop frenzy like we did in previous rallies.
Airdrops are undoubtedly one method of providing free crypto rewards, including NFTs, requiring minimal or no effort from the user's side. However, this benefit applies only to genuine airdrop projects and comes with risks, as fraudulent airdrops can target users with scams or malware.
The Polygon airdrop scam is one notable example of such an unfortunate event. In this case, scammers mimicked 1,354 fraudulent NFTs, resulting in a loss of more than $1.2 million. According to ScamSniffer's research, scammers targeted over 737K wallet addresses with fake airdrops of popular projects such as ApeCoin, Pepe, The Sandbox, and many others to deceive the victims.
In this article, we'll explore crypto airdrop scams in detail, how scammers execute such fraudulent activities, ways to prevent such scams, and some helpful tools to detect airdrop scams.
Airdrop scams promise users free tokens to execute activities (malicious), often aimed at stealing users' crypto funds. These scams typically involve tricking users into clicking on malicious links, connecting wallet to fake dApps, or exposing sensitive wallet information.
Crypto airdrop scams mostly offer substantial token or NFT rewards, so scammers can misuse users' private keys or wallet credentials to steal their digital assets. They also hack genuine accounts and websites and impersonate popular projects to gain users' trust.
Scammers keep evolving with time and constantly introduce new tactics to trick users into their trap. Typically, the common airdrop scam operates as follows:
Airdrops, when legitimate, are a way for crypto projects to distribute free tokens or NFTs to their community.
However, scammers exploit this concept to steal funds or sensitive information. Here are four common types of crypto and NFT airdrop scams:
Phishing airdrop scams are common, and scammers mimic popular projects' websites and social media accounts to gain users' attention and trust. Once the user's trust is gained, they ask users to register or fill out forms, including crypto wallet information, such as private keys, that allow scammers to access and steal their assets.
For instance, emails and social media posts were used for fake announcements in the name of 1inch offering airdrops worth $1,500. 1inch noticed this spam and posted on its social media accounts to create awareness among the community and requested to report and block those spammers.
The other fraudulent form of airdrop scams involves seeking advance payments in the form of tokens from the participants by selling them the dream of massive token returns. These payments are disguised to convince the victims that they are for transaction fees or wallet verification.
An example of this type of scam involved the misuse of SpaceX's name, featuring a fake AI-generated video of its founder, Elon Musk, promoting a fraudulent 5,000 BTC giveaway. In this scheme, users were promised an airdrop of 0.2 BTC in exchange for sending 0.1 BTC or more. For those sending over 10 BTC, the scammers falsely offered a 60% bonus, along with up to 20+ BTC as a reward.
NFTs are one of the favorite tools that scammers use to target their victims. They employ methods such as creating duplicates of popular NFTs, offering valuable NFTs for free, and more. These fraudsters even go to extreme lengths, such as hacking a project's official website, social media accounts, or celebrity profiles to deceive users.
An example of such an extreme NFT scam involved hacking Vitalik Buterin's X account, where free NFT airdrops were offered as part of the scam along with a malicious link. In this scheme, a fake NFT collection was presented with a 24-hour deadline, resulting in a collective loss of around $700K in assets from victims.
Similar to how address poisoning attacks world, dusting attacks involve attackers sending minuscule amounts of cryptocurrency (dust) to a large number of wallets.
Scammers airdrop worthless or even malicious NFTs to a massive number of wallets. These NFTs might have eye-catching names or artwork to pique your curiosity.
These NFTs often have hidden smart contracts associated with them. These contracts can be designed to:
Scammers rely on people's curiosity or the desire to get something for free. They hope you'll interact with the NFT without thinking about the potential risks.
Let's analyze some airdrop scams with the help of some examples:
Users received a fake 'Mystery Box' as an airdrop from Solana's top NFT marketplace, Magic Eden, as the initial step of an NFT airdrop scam. In this scam, users were also provided with a malicious link to claim their NFT reward, along with images copied from Magic Eden's original website to further convince them of its legitimacy.
Once the user clicks the provided link, all the SOL tokens stored at the connected wallet address are completely drained upon approval. Following this scam, Magic Eden published a blog post to inform its community that they don't distribute 'Mystery Box' through airdrops.
Scammers have created a fake website that mimics the original ApeCoin website. The intention is to drain crypto assets by offering token airdrops. On this fake site, visitors are prompted to connect their wallets to claim APE, the governance and utility token of the ApeCoin ecosystem.
The fake website also lists numerous supported wallets, allowing the fraudsters to target a wide range of users. Visiting these spam websites can lead to malware infections, loss of private keys or seed phrases, and, ultimately, the theft of funds from victims' wallet addresses.
Earlier, we discussed different ways to protect yourself from specific types of airdrop scams. Here are four general precautionary tips to safeguard yourself from airdrop scams.
The lack of research on airdrop projects is one of the main reasons for financial loss and potential scams. Before clicking any links or participating in any token or NFT airdrop, users must ensure to conduct at least some research on the source of the announcement, objective, and more.
Users can also double-check the website with the original one or paste it into free online spam checkers to rule out the possibility of scam airdrops.
No matter how lucrative the crypto airdrop rewards may seem, individuals should never share their private keys, passwords, or seed phrases related to their wallets. If an airdrop requires this information, it is a clear indication of a scam.
Legitimate airdrops never ask for such sensitive information from users, and this request can be considered a primary red flag to avoid falling victim to scams.
It's recommended to use multiple separate wallets instead of relying solely on a main wallet containing valuable crypto assets to minimize the risk of scams and hacks when receiving airdrops. For added security, consider using a burner wallet that can be discarded after a single use, limiting potential vulnerabilities.
Even in the worst-case scenario of encountering scammers while using a separate, empty wallet, the potential loss is restricted to the wallet itself, preventing any loss of valuable assets.
Before participating in any airdrops, verify the legitimacy of such initiatives by checking the project's official platforms and online forums. This cross-verification helps users avoid scams that are usually executed by hacking one of the social media accounts.
In case of doubt, it is advisable to inquire about the airdrop announcement in official community groups or with customer support, if available, to eliminate the possibility of entering into any scams.
These tools don't guarantee the detection of all airdrop scams, as new schemes keep emerging, but they can help to detect major existing ones.
The allure of "free" in the crypto world often blinds users to the risks lurking behind flashy promises. Airdrop scams highlight a fundamental truth about digital finance: vigilance is not optional but essential.
These scams are a reminder that the decentralized nature of crypto is both its greatest strength and its most significant vulnerability, placing the responsibility for security squarely on users.
To thrive in this ecosystem, users must shift their mindset from merely reacting to scams to actively fortifying their defenses.
By taking proactive steps — researching thoroughly, isolating assets in separate wallets, and engaging in informed communities — we move from passive participants into empowered stewards of our digital assets.
Transak provides a safe and seamless way to purchase crypto and NFTs, eliminating the risks associated with scams and malicious actors. By partnering with verified projects and adhering to strict compliance standards like SOC 2 and ISO/IEC 27001, Transak ensures secure transactions.
With a fully compliant infrastructure, users can confidently explore web3 while keeping their assets protected. Whether you’re buying crypto or NFTs, Transak makes security and simplicity its top priorities.