In this article:
Learn all about fake token scams, including how they work, how to spot them, and what you can do to protect yourself.
Fake token scams are one of the most common threats in the cryptocurrency space currently.
What are fake tokens?
Fake tokens are counterfeit cryptocurrencies or tokens that are designed to look like legitimate ones. Scammers create these tokens to mislead users into buying or swapping them, only for the tokens to have no value or purpose. Fake tokens can often be found on wallet token lists, as well as fake websites, social media platforms, and on decentralized exchanges.
These fake tokens will often have an identical ticker (the token symbol, like BTC or ETH) and name, or one letter off. They will often also be on a different blockchain than the original asset — for example, the legitimate token may be an ERC-20 token, meaning it's on Ethereum, but a fake token will look identical but be on BNB Smart Chain instead.
Scammers hope you won't notice, will trade the wrong token, and end up losing your funds for a worthless token.
How do fake token scams work?
Fake token scams usually operate in one of the following ways:
Token Cloning: Scammers create counterfeit tokens that look identical to legitimate ones, fooling users into thinking they’re buying an established token. Once you buy or trade this fake token, you will end up losing your original asset for a useless, worthless token that has no liquidity or community behind it.
Fake Upcoming Tokens: Scammers promote fake Upcoming Tokens through email, social media, or fake websites. These will seem identical to one of the Upcoming Tokens featured in Best Wallet, but won't be legitimate. You will either connect your wallet and get your funds drained or will end up buying a token that will never launch, resulting in a loss of funds.
Phony Airdrops: Fraudsters claim to be giving away free tokens but require you to provide personal information or send a small amount of cryptocurrency upfront. Once you send the funds, they vanish.
How to spot fake token scams
Identifying a fake token scam is not always straightforward, but there are key signs to watch out for:
Check the Website URL: Always verify that the website URL matches the official website of the token or project. Fake websites will often have slightly altered URLs (instead of being ".com", they will be ".io", for example).
Review the Token’s Contract Address: Always double-check the contract address on official sources like the official project's website/whitepaper or reputable platforms like CoinMarketCap. If the token is not launched yet, you won't be able to trade it, meaning any token already launched and listed is a duplicate scam.
Look for Red Flags in Communications: Watch for poorly written content, high-pressure sales tactics, and unsolicited offers. Be wary of social media accounts or email addresses that don’t seem to align with the official channels of the project.
Use Trusted Platforms: Always use trusted, verified exchanges or wallets to purchase or swap tokens. Avoid unfamiliar platforms or offers that sound too good to be true.
Fake Upcoming Tokens
It can be tempting to swap or trade an Upcoming Token before it officially launches, but this is not possible for several important reasons:
No Official Launch Yet: Until a token officially launches, it cannot be swapped or traded on any platform like a decentralized exchange. Any offers to swap a token before it launches are likely scams.
Security Risks: Trying to trade an Upcoming Token before launch could expose your wallet to phishing websites or other fraudulent schemes. Always wait for the official launch, as all legitimate token sales will have clear guidelines and official launch dates.
Lack of Liquidity: If the token hasn’t launched, there’s no liquidity available for trading. Scammers may use this tactic to get you to send funds with no intention of delivering the promised tokens.
When buying an Upcoming Token, please only follow official communications from Best Wallet and the specific project. They will always align, so please double-check any communications with any messaging from Best Wallet to ensure it's legitimate.
How to hide suspicious tokens
If you believe you have received a fake token or are seeing suspicious tokens in your wallet, you can take the following steps to protect your assets:
Hide the Token in Your Wallet: Most wallets, including Best Wallet, allow you to hide tokens from your token list. You can do so by scrolling down your wallet's token list, tapping "Manage tokens", then toggle off any unwanted tokens.
Hide Suspicious Tokens in Settings: You can also let Best Wallet hide suspicious tokens as a default by going to Settings, then toggling ON "Hide Suspicious Tokens. Read our guide on how to hide suspicious tokens in-app.
Check for Any Unknown Contract Addresses: If you notice tokens from unfamiliar or unknown contract addresses, take extra care. It’s a good idea to research the token address before interacting with it.
Avoid Interacting with Suspicious Tokens: Do not attempt to send, trade, or swap tokens that seem suspicious or that you did not personally opt into
If you need more help with suspicious tokens:
If you’ve encountered a fake token scam or need help with suspicious activity in your wallet, the Best Wallet support team is here to assist you. We take security seriously and are always ready to help you protect your assets.
First, don't trade the suspicious token, then contact the Best Wallet support team in-app by heading to Settings and then Get Help. Read our guide on how to get in-app support.
Important reminder: Best Wallet will never request your wallet’s private key or secret recovery phrase. Keep this information strictly private and do not share it with anyone.