What is a Scam? A Complete Guide to Digital & Cryptocurrency Fraud

In this digital age, our lives are increasingly intertwined with the internet. Online shopping, banking transactions, and even investments can now be done using only a smartphone. However, behind this convenience lies a new risk: scams.

A scam is a form of fraud that exploits a person's trust, negligence, or lack of information to gain an advantage, usually in the form of money or personal data.

In the past, fraud often occurred face-to-face, but now scams are more common in the online world—such as phishing emails, fake marketplaces, and fraudulent crypto investments.

This article will thoroughly discuss what a scam is, its types, characteristics, real-life examples, impacts, and how to avoid becoming a victim.

What is a Scam?

Linguistically, scam means fraud or deception. In the digital context, a scam is an attempt by a person or group of people to deceive victims to illegally obtain money, assets, or personal data.

Definition of “Scamp”

The word “scamp” is often confused with “scam”.

1. Scam means fraud.
2. Scammer means a perpetrator of fraud.
3. Scamp in English actually means a mischievous child or a prankster, not a fraudster.
4. So, in the context of digital fraud, the right word is scam or scammer.

Main characteristics of a scam:

1. There is always an element of deception.
2. Promises something that is too good to be true.
3. Involves persuasion, subtle coercion, or psychological manipulation.
4. The perpetrator typically uses a fake identity to avoid detection.

A simple example of a scam is an email claiming to be from your bank, asking for an OTP code for “security verification.” If the OTP is given, the perpetrator can immediately drain the account.

The Most Common Types of Scams

1. Phishing Emails

This method uses fake emails that resemble official institutions (banks, e-commerce, even the government). The goal is to steal login data, credit card information, or OTPs.

Example: You receive an email from “Bank BCA” with an official logo, asking you to click a link to “update your data.” After clicking, you are redirected to a fake website that resembles an internet banking login page.

2. Investment Scam

This scam often claims the most victims, including in the crypto world.

1. Ponzi Scheme: Profits for seasoned investors are paid from the money of new investors.
2. Rug Pulls in Cryptocurrency: Developers launch tokens, hype them up, then disappear with investor funds.

Example: Many new tokens go viral on social media, but then their prices plummet to zero because developers withdraw all liquidity from the DEX.

3. Romance Scam

Scammers pretend to form romantic relationships through dating apps or social media, then gradually ask for money under the pretext of an emergency.

Real case: The FBI reports thousands of victims losing hundreds of millions of dollars because their “online partners” turned out to be scammers.

4. Marketplace / Online Shop Scams

Fraud through online buying and selling. Modus operandi include:

1. Fake or fictitious goods.
2. Sellers disappear after receiving money.
3. Sending items that are different from what was advertised.

5. Tech Support Scam

Perpetrators pretend to be customer support from large companies (Microsoft, Apple, Binance), then ask for remote access or login data under the pretext of fixing problems.

6. Lottery & Giveaway Scam

Scammers claim that the victim has won a lottery prize, when in fact it is fake. The goal is to get the victim to transfer “admin fees” or provide personal data.

Example in the crypto world: Many fake accounts claim to be major exchanges holding Bitcoin/ETH airdrops or giveaways, but the winner must “deposit first.”

7. Online Scammers

Online scammers are fraudsters who operate on the internet — usually through social media, marketplaces, or email.

Modus operandi:

1. Selling fictitious goods in the marketplace.
2. Falsely claiming to be customer service.
3. Designing fake websites to steal login data.
4. Spreading phishing links through advertisements or text messages.

Tips: always check the website’s domain, ensure the site uses HTTPS, and avoid transactions outside official platforms.

8. WhatsApp Scammers

WhatsApp scammers exploit the platform’s ease of communication to scam users.

Characteristics:

1. Sending fake messages claiming you have won a prize.
2. Pretending to be a friend or family member with a new number.
3. Sending phishing links or APK files.
4. Asking for OTP codes for various reasons.

Safety measures: Never send OTPs or personal data via chat. Use the report and block features on WhatsApp.

Phishing Scams

A phishing scam is a form of digital fraud in which scammers attempt to steal personal data through fake websites, emails, or messages. Characteristics of phishing:

1. Imitating the appearance of official websites (bank login pages, exchanges, e-commerce sites).
2. Directing victims to fake URLs that are similar to the original.
3. Asking victims to fill in their login details or seed phrases.

How to avoid phishing scams:

1. Carefully check the site’s domain (make sure it uses HTTPS and the spelling is correct).
2. Don’t click links from suspicious messages.
3. Active 2-factor authentication (2FA).
4. Always type the domain name manually on your browser.

How to Report Scammers

Detecting and reporting scammers is not an easy task, as they often operate cross-border. However, you can do these steps.

1. Compile evidence: Screenshots, account numbers, messages, and links.
2. Report to authorities:
3. Indonesian National Police (cybercrime): patrolisiber.id
4. Ministry of Communication and Information Technology: aduankonten.id
5. Relevant bank: if the scam involves bank accounts.
6. Block and spread awareness to the community or on social media so others don’t fall victim.

Common Characteristics of Scams

To recognize scams more easily, pay attention to the following characteristics:

Unrealistic Promises for Profit

Example: “Invest 1 million, get 5 million profit in a week.”

Requests for Personal Information or OTP

Official institutions never ask for passwords, OTPs, or PINs via telephone/SMS/email.

Rushing or Urging

1. Scammers often pressure their victims by saying::
2. “You have to do it right now.”
3. “Limited time only, this is your only chance.”

Fake Identities

1. Fake websites (nearly identical URLs with one letter difference).
2. Fake social media accounts that imitate the official one.

Lack of Transparency

No office address or clear company name, making them difficult to find.

Signs of a Scammer’s Phone Number

A scammer’s phone number typically:

1. Listed as unknown or has a foreign area code.
2. Uses unofficial numbers (e.g., a fake WhatsApp Business account).
3. Frequently calls or sends urgent messages
4. Pretends to be an official institution (bank, courier, tax office, etc.).

Use apps like GetContact or Truecaller to check the reputation of the number.

Real Case Studies

Case 1 — Love Scam & Fraudulent Investments (Indonesia, 2025)

How it started: The victim came across a fake account on social media impersonating a Malaysian celebrity.

Timeline:

1. May 2025 → he victim was introduced to an investment as a “side job”.
2. The victim made several transfers with the promise of high profits.
3. June 2025 → After a thorough investigation, the police arrested 3 suspects in an apartment at Tanah Abang.

Outcome: The victim lost Rp 423 million. The perpetrators were charged under ITE and TPPU laws. (Reference: Detik News)

Case 2 — “Squid Game Token” Crypto Rug Pull (Global, 2021)

Initial incident: A new crypto token emerged following the hype surrounding the Netflix series Squid Game.

Timeline:

1. October 2021 → The token was launched with a massive promotion on social media.
2. 26 October – 1 November 2021 → Prices surged more than 23 million percent.
3. Early November 2021 → Developers performed a rug pull, causing the token price to fall to almost zero.

Outcome: Thousands of investors lost their capital. This case is a classic example of a rug pull in the crypto world. (Reference: Kompas TV)

What Investors Say

Rudy — Jakarta

“Once, I almost joined an investment scheme that promised large profits. Fortunately, I read the news about a similar scam, so I ended up not transferring.”

Anthony — Semarang

“I once clicked a fake link from an email that looked similar to an official bank. Ever since then, I always check the URL before logging in.”

How to Avoid Scams?

1. Don’t be easily tempted by offers of quick profits.
2. Check the source of information – Ensure the site’s domain is official..
3. Active 2FA (Two-Factor Authentication) for all important accounts.
4. Use separate emails and passwords for financial and social accounts.
5. Educate yourself about the latest scam methods.

Anti-Scam Checklist

How to Deal with Scammers

If you have come into contact with or fallen victim to a scam:

1. Do not send any more data or money.
2. Change the passwords of any accounts that may have been accessed.
3. Report the scammer's account to the bank so it can be blocked.
4. Report to official accounts such as patrolisiber.id.
5. Spread awareness so others don’t become victims.
6. In the case of cryptocurrency or digital asset scams, contact the exchange where the transaction took place so that the wallet can be flagged.

What should I do if I Get Scammed?

1. Immediately block your account & change all passwords.
2. Report to authorities
3. The police (cybercrime unit).
4. OJK for investment fraud
5. Report to Kominfo.
6. 3. Spread awareness to the community so others don’t fall victim.

FAQ About Scams

1. What is the difference between scam and hacking?

1. A scam is fraud that relies on social or psychological manipulation. The perpetrator lures the victim into voluntarily handing over money or data. Example: being asked to transfer money with the promise of a reward
2. Hacking is a direct technical attack on a system/account without the owner's knowledge. Example: an email account is hacked using brute force.

Conclusion: scams require the victim's “consent” (even if the victim is unaware they are being deceived), while hacking works without the victim's permission.

2. Do scams always involve money?

Not always. Many scams start with stealing personal data, such as ID card information, addresses, or credit card numbers. This data can then be sold or used for illegal activities, such as creating online loan accounts. So, even if you don't lose money initially, your data can ultimately be misused to harm you financially.

3. How to report scams in Indonesia?

Report it via:

1. The police→ Cybercrime unit
2. OJK → If it involves fraudulent investments or illegal financial companies.
3. Kominfo → To block fake websites or applications (can be done through aduankonten.id).
4. Bank/Fintech → If it involves banks or applications where funds are deposited.

The sooner it is reported, the greater the chance that the funds can be frozen before the perpetrator withdraws them.

4. Are crypto scams different from regular scams?

In principle, they are the same, as both aim to steal money. However, there are some differences:

1. Crypto scams are usually difficult to track because blockchain transactions are anonymous.
2. There are various forms of crypto scams: rug pulls, fake airdrops, fake exchanges, and phishing wallets.
3. Many victims fall prey because they lack technological understanding and are easily tempted by promises of instant profits.

5. How to be more aware of scams?

1. Be skeptical of promises of “quick profits.”
2. Always check the source of information (domain, official addresses, contacts).
3. Use 2-factor authentication (2FA).
4. Read news about the latest scam techniques.
5. Discuss with the community: Ask for opinions before performing a big transaction.

6. What are the most obvious signs of a scam?

1. Excessively high profits in a short period of time.
2. Requests for personal data that should be confidential.
3. Pressure to act immediately (“now or never”).
4. No transparency regarding the identity of the company or product.

7. Can all scams be reported and investigated?

Not all. Some scammers operate from abroad, using cross-border servers or accounts. However, reporting is still important because it can help authorities block accounts or websites to prevent others from being deceived.

8. Are there scams that target certain groups of people?

Yes. Scam methods usually target specific groups, for example:

1. Students → Often targets for fake job openings.
2. Housewives → Deceived by online marketplace scammers.
3. Novice investors → Targets for fraudulent investments or crypto scams.

Each group typically falls victim to a different modus operandi.

9. If I have transferred to a scam account, is it possible to get my money back?

Yes, but the chances are low. If you quickly report the scam to the bank and the police, the receiving account can be frozen. However, if the money is already withdrawn by the scammer, it is almost impossible to get it back.

10. Are all giveaways on the internet scams?

Not all of them. Some are genuine, especially if they are held by major brands or official platforms. However, scammers often imitate this pattern to deceive victims. A practical rule: never transfer money or enter your password/seed phrase to participate in a giveaway.

11. Does a scam have a connection with social engineering?

A scam is part of social engineering, which is the art of manipulating people to give something away. So, scams can be considered a form of social engineering for criminal purposes.

12. How to educate my children or parents so they don’t fall victim to scams?

1. Use real-world examples (read news about scams)
2. Teach them not to randomly click on links or share personal data.
3. Install additional security apps on their phones/laptops.
4. Encourage the habit of “check first, ask first” before conducting online transactions.

Conclusion

Scams are one of the biggest threats in the digital world, especially in finance and cryptocurrency. The modus operandi differ: phishing, fraudulent investments, and even cryptocurrency rug pulls.

The key to avoiding scams is education, vigilance, and information verification. Don’t be easily tempted by promises of instant profits, don’t share your personal information, and always use official platforms.

Remember: if something sounds too good to be true, then it’s most likely a scam.