What is social engineering in crypto, and how to protect yourself

June 17, 20255 min read

Social engineering is the act of appealing to human nature or a person�s psychology with some malicious intentions

In crypto, social engineering tactics have been used by hackers and scammers to siphon billions of dollars from personal and institutional crypto wallets

Social engineering tactics are among the hardest to recognize because it may take hackers even years to build a personal relationship with a victim

The latest crypto platform to lose funds through social engineering attacks is crypto exchange Bybit, which lost $1.5 billion in February 2025

If hackers can�t brute force their way into a crypto wallet or project, they use the psychological route called social engineering. Here, they may build a personal relationship with a person who holds an influential position at a crypto project, like in the case of the $1.5 billion Bybit hack, or has some crypto in their wallet. The relationship may be romantic, educational, or just a deep friendship. Although the relationship may look genuine, the malicious actor isn�t interested in the relationship but rather the confidential information or access to the victim�s computer and, ultimately, their crypto wealth.

Below, we explore what is social engineering in crypto, how to protect yourself, and, as a bonus, how to protect yourself before you become a victim.

What is social engineering in crypto?

Social engineering in crypto is the act of threat actors creating a social bond with a crypto user with the aim of stealing crypto or related data from the victim. Malicious actors are increasingly exploring the social aspect as the weak link to access crypto wallets.

The social engineering path requires fewer technical skills on the side of the malicious actor and a gullible victim who trusts strangers on social media platforms. Hackers and scammers using this tactic capitalize on the human element to gain access to a crypto wallet or crypto project�s systems.

Depending on their analysis, malicious actors may use deception, build trust, or exploit the psychological weaknesses of their target to gain crucial data or, most often, free illicit crypto. Hackers prefer this type of manipulation because crypto is decentralized, and once coins are drained from a wallet, it becomes nearly impossible to recover them, especially when the hackers act quickly and utilize crypto mixing services to hide the trail of funds.

Steps that hackers use to conduct social engineering in crypto

Social engineering in crypto isn�t a one-day affair. Instead, threat actors spend weeks, months, and even years �cultivating� their victims. The process of social engineering a victim involves multiple steps. The main steps that hackers use to conduct social engineering in crypto are:

Pin-pointing a victim from the crowd

Not everyone on social media platforms holds crypto. So, the first step for malicious actors using social engineering to steal crypto is to evaluate which social media users has crypto links and how valuable the links are. They prefer scouting for targets on Discord, X (formerly Twitter), Reddit, and Telegram.

Hackers sift through post on multiple social media platforms from people asking for help, flaunting their crypto gains, or accidentally leaking wallet addresses. The information gathered determines the next step.

Contact

Now that the attacker has some basic background information about the victim, it�s time to initiate contact. The information gathered in step one determines how the malicious actor will present themselves to the victim.

If the victim was seeking help, they�ll present themselves as knowledgeable and may even claim to hold an executive position at a non-existent crypto project or impersonate employees of popular blockchain projects. If they were flaunting their wealth, the attacker may present themselves as an investment guru. They also try to be as convincing and professional as possible to build trust.

The engagement

Now that they�ve established contact, it�s time to engage by proposing some quick and time-sensitive solutions to your problems. Here, they ask you to verify your account or wallet to fix some �risks.� They create a fake urgency to twist your mind into acting without considering the request.

The �solution�

To fix the �risk� or access time-sensitive benefits, they offer a solution mostly in the form of links that take you to a place to input your wallet details or connect to popular crypto and web3 platforms like MetaMask or OpenSea. The link may also be a way for them to twist you to allow a smart contract to access your wallet. The solution may also be in the form of sending a small crypto amount to an external wallet and receiving more crypto in return.

Theft

If you complete any of the steps in �the solution� section you are officially a victim of social engineering in crypto. Unfortunately, victims realize that the help or goodies offered by the strangers weren�t genuine when it�s too late.

What is social engineering in crypto: How to protect yourself

Don�t be greedy - Hackers hinge their tactic on a victim�s greed to want more money or multiply their crypto wealth quickly.

Be cautious when someone offers unsolicited help - Whether on social media, a direct message, or an email, don�t accept help from strangers, and more so, help that you didn�t request. Ask yourself, how did they know you needed help, or you hold crypto?

Use strong security measures - This includes things like enabling 2FA (two-factor authentication) and using hardware wallets.

Keep yourself updated - Be in the know regarding the latest social engineering tactics in crypto. Also, be updated on the latest scams.

Conclusion

Social engineering in crypto is the act of having the victim willingly open the door for threat actors to steal crypto. In a world where crypto wallets hold billions of dollars, hackers and scammers will always explore different ways to get to the billions. Even if the route means exploiting your psychological weaknesses.