The Crypto Adviser
The Crypto Adviser

Fake Bitcoin Wallet And Fake Cryptocurrency Balance Scams

Adam Smith
Fake crypto wallet app and tokens
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Setting up a fake Bitcoin wallet app is pretty straight forward, especially if use a ready-made template.

Equally, it’s not that difficult to create a cryptocurrency if you have the technical know-how and some spare cash.

Unfortunately, the ease that fake crypto wallets and digital tokens can be created is being exploited by fraudsters and used in a variety of different scams to steal cash from unsuspecting investors.


A fake wallet app is often used in conjunction with a fake cryptocurrency to create, you guessed it, a fake cryptocurrency balance.

This helps the scammers convince their victims that their funds are safe in their account.

The trick is used to create the impression that crypto transactions have taken place, often using coins such as Ethereum, USDT (Tether) or Bitcoin.

But in reality, the funds have been stolen by the scammers and are long gone.

Fake Bitcoin wallet

Setting up a fake Bitcoin or cryptocurrency wallet is a common tactic used by scammers.

Sometimes the wallet will be designed to appear as if it’s a legitimate crypto wallet, including a similar logo.

Other times the scammers create a new app but give it a name that sounds very similar to one of the legitimate popular crypto wallets that people use.

The fake Bitcoin wallet will often be used in conjunction with a fake website and/or a social media group on a platform like WhatsApp or Telegram.

The website will be designed to resemble a crypto trading platform/exchange, or possibly a cloud mining platform.

The social media app will be populated with other scammers or bots posting messages about how they’re making easy profits investing in crypto.

All the different elements will be used together, potentially alongside emails and phone calls from the scammers, to extract as much money as possible from the victim.

Fake cryptocurrency and Bitcoin transactions

Minting a worthless cryptocurrency is relatively easy to do as I’ve said, and it can be a highly effective tool in the scammers’ arsenal.

While fake crypto wallets are commonly used in rug pulls, creating a fake crypto also allows scammers to make it appear as if a genuine wallet has coins in it.

Once a crypto has been created it can be transferred to a wallet to convince scam victims that their balance is safe.

Although the wallet will show a balance of coins, often cleverly manipulated to imitate a coin such as USDT (Tether) or Ethereum, the actual value of the tokens will be zero.

How to spot a fake Bitcoin wallet

A fake Bitcoin or crypto wallet can be difficult to spot, especially if you’re unfamiliar with the cryptosphere.

Fake crypto wallet apps can look remarkably similar to the real thing and can easily fool a new investor.

Scammers will often set up the wallet on behalf of the ‘investor’ and manage the balances, even though these are fake.

Sometimes they’ll even set up a genuine crypto wallet for the victim, taking control of any crypto that ends up there by stealing the mnemonic seed phrase and password.

Either way, the scammers will have complete control over you funds and they’ll be quickly siphoned off to other wallets belonging to the fraudsters.

How to spot a worthless or fake cryptocurrency

The quickest way to spot a newly minted coin masquerading as another token is to check your balance.

Say you’ve been told that your wallet contains 50,000 USDT then there should be a corresponding cash value visible in your wallet.

But if the coin is actually an imposter it will be worthless, and your cash balance will be zero.

The token’s logo is often a giveaway as well, with the scammers sometimes using incorrect designs for the coin that they’ve supposedly transferred.

A fake crypto wallet called Coinsplanets is a classic example of how the scammers create a non-functioning wallet app to trick victims.

If you want to get a little more technical, you can check the token’s contract address against the official contract.

The contract address is a unique identifier and the location of the smart contract connected with the token when it’s deployed.

In the case of scam or fake cryptos, the address won’t match the correct contract address.

You can use a site like CoinMarketCap to quickly check the contract address against the official token.

How to spot a fake crypto scam

Spotting crypto scams can be difficult, especially if you’re new to the space and unfamiliar with what legitimate exchanges, platforms and wallet apps look like.

There are loads of resources on The Crypto Adviser which will help you steer clear of scams, many of which I’ve listed at the bottom of this page.

Here’s some of the most common things to look out for:

  • Poorly designed websites and content with spelling mistakes in it.
  • Being directed towards a crypto platform by someone you’ve recently met online.
  • A recently registered domain name that may sound very similar to that of a legitimate crypto company.
  • The promise of high returns in a short space of time.
  • Pressure to keep investing increasingly large sums of money.
  • Someone offering to set up platform accounts and wallets on your behalf.

If you’re still stuck and would like some advice and help navigating the world of crypto and avoiding scams, then check out the services we offer.

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Disclaimer: Nothing on this website constitutes financial advice. The information provided is for educational purposes only.

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