Ripple's Chief Legal Officer Warns of 6 Common Crypto Scams

Ripple’s Chief Legal Officer, Stuart Alderoty, has issued a critical warning to the crypto community, emphasizing the importance of securing digital assets. His message, published in a National Cryptocurrency Association post, highlights the ever-present threat of digital scams and provides a clear roadmap for staying safe in the fast-moving crypto landscape.

“Protecting yourself is just as important in your crypto wallet as it is in your email inbox or your banking app,” Alderoty cautioned. As cryptocurrencies gain broader adoption, bad actors have found new ways to exploit users. While blockchain technology offers revolutionary benefits, it also presents risks, especially for those unfamiliar with digital security.

Alderoty’s post outlines six of the most common and dangerous online scams targeting crypto holders. These schemes are designed to exploit trust, curiosity, and urgency—traits that scammers leverage to defraud even the most cautious users. Pig Butchering Scams involve fraudsters creating fake emotional or social relationships to lure victims into investing in fake crypto schemes. Once the money is transferred, the scammer disappears, leaving the victim emotionally and financially devastated.

Pump-and-Dump Schemes target lesser-known tokens, artificially inflating their prices through orchestrated hype across social media or messaging platforms. When unsuspecting investors buy in, the organizers dump their holdings at the top, causing the token’s value to crash, leaving victims holding worthless coins. Phony Crypto Giveaways promise to “double your crypto” if you send a small amount first. These offers are 100% fraudulent. Legitimate giveaways never require upfront payments, and any request for such should immediately raise alarms.

Impersonation Scams involve scammers posing as support agents, regulators, or known brands to trick users into revealing sensitive data or sending crypto to bogus addresses. Despite appearing professional, these impersonators’ true goal is to deceive and exploit others for personal gain. Phishing Attacks involve emails, social media messages, or websites designed to mimic trusted platforms. The goal is to deceive users into entering their wallet credentials or recovery phrases, handing complete control over to the attacker.

Random Messages and Cold Contacts, such as unexpected texts like “How are you?” or “I found your number,” should always raise red flags. These messages are often the first step in more complex scams. Scammers hope to create a false sense of familiarity and slowly reel victims in.

Alderoty stresses that online safety isn’t about fear, it’s about being equipped. By adopting a few simple yet effective habits, users can substantially reduce their risk of falling victim to digital threats, even as they continue to evolve. Here are the six safety tips every XRP holder and crypto user in general should follow: Keep Your Private Key Offline. Share your public address freely, but never expose your private key or recovery phrase. Think of your private key as the master key to your vault—if someone has it, they control your funds.

Scrutinize Every Link. Be wary of random links, especially those in emails, DMs, or social media posts. Always verify the sender and hover over the URL to ensure it leads to a legitimate site. Watch Out for Urgency Tactics. Scammers often try to rush you with lines like “limited-time offer” or “act now.” These high-pressure tactics are designed to bypass your judgment. Take your time and investigate before taking any action.

Do Your Research. When considering a crypto investment, research the project’s development team, review its whitepaper, assess community feedback, and evaluate its reputation. Don’t be swayed by hype or anonymous endorsements. Trust Your Instincts, but Check the Facts. If something seems off—misspelled names, unofficial logos, or overly generous promises—stop and verify. Gut feelings are often your best early warning system. Avoid Unsolicited Messages. Ignore random DMs, texts, or emails from unknown individuals. Scammers often use unsolicited messages to initiate contact, whether posing as a new friend, a promising opportunity, or a fake support agent.

While the decentralization and control that come with crypto are empowering, Alderoty reminds users that personal responsibility is the cornerstone of digital safety. “Crypto gives people more control, more access, and more opportunity. But that means nothing without trust and safety,” he emphasized. He also noted that, according to a wide-reaching survey conducted by his organization, fewer than 1% of U.S. crypto holders have experienced fraud or breaches—a far lower figure than the 34% who have faced banking scams or the 40% who’ve encountered fraud on dating apps. This proves that when used wisely, crypto can be safer than many traditional online systems.

Alderoty encourages newcomers to be “crypto curious,” but also vigilant. With habits such as two-factor authentication, cautious clicking, and secure key storage, users can confidently navigate the digital finance world. The rapid evolution of the crypto space brings both opportunities and risks. Scammers are becoming more sophisticated, but so are the tools and practices that can keep you safe. With the right awareness, crypto doesn’t have to be a risky endeavor; it can be a powerful tool for financial freedom.