$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
DeFi yield farming trap scam
Fraudulent DeFi protocols advertise impossibly high annual yields to attract deposits, then drain the liquidity pools or lock funds behind escalating withdrawal fees.
“bitcoin scam”
↑ 72%Key indicators
Usually targetsDeFi users
Often hitsTech workers and developers
Common regionGlobal
Last updated2026-04-04
Estimated impact
$6.8K
median reported loss
Typical range$360 – $270K
Recovery rate~3%
Annual reports69,461
Scam breakdown
1
Scammers launch a DeFi protocol offering extremely high yields to attract depositors quickly
2
Early depositors receive payouts funded by later depositors in a Ponzi-like structure, building social proof
3
Once sufficient funds are deposited, the developers exploit backdoors in the smart contract to drain all liquidity
What to do first
Research the protocol's smart contract audit reports and team credentials before depositing any funds
Related terms
DeFi Ponzi schemeyield farm rug pullliquidity mining scamCryptocurrency scamsWebsiteStableDeFi usersCrypto investorsTech workers and developersInvestors and tradersOnline shoppersGlobalDeFi Ponzi schemeyield farm rug pull
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Ashley, 35, a defi users, encountered what appeared to be a legitimate cryptocurrency scams situation while using Website. Scammers launch a DeFi protocol offering extremely high yields to attract depositors quickly
Step 2
What happened next was calculated: Early depositors receive payouts funded by later depositors in a Ponzi-like structure, building social proof
Step 3
The pressure escalated quickly: Once sufficient funds are deposited, the developers exploit backdoors in the smart contract to drain all liquidity
The outcome
Ashley realized something was wrong when annual percentage yields exceeding 1,000% with no clear explanation of how returns are generated. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Research the protocol's smart contract audit reports and team credentials before depositing any funds Ashley's experience shows why annual percentage yields exceeding 1,000% with no clear explanation of how returns are generated and smart contracts are unaudited or the audit is from an unknown firm are the clearest early warning signs.
How to identify it
- Annual percentage yields exceeding 1,000% with no clear explanation of how returns are generated
- Smart contracts are unaudited or the audit is from an unknown firm
- No timelocked contracts, multi-sig wallet, or doxxed team members
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Research the protocol's smart contract audit reports and team credentials before depositing any funds
- ✓Be skeptical of yields that seem too good to be true — sustainable yields in DeFi are typically single or low double digits
- ✓Start with small test amounts and verify you can withdraw before committing larger sums
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- DeFi exploit and rug pull losses totaled over 1.8 billion USD in 2023 according to blockchain security firm Immunefi
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Research the protocol's smart contract audit reports and team credentials before depositing any funds
- ✓Be skeptical of yields that seem too good to be true — sustainable yields in DeFi are typically single or low double digits
- ✓Start with small test amounts and verify you can withdraw before committing larger sums
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
DeFi exploit and rug pull losses totaled over 1.8 billion USD in 2023 according to blockchain security firm Immunefi
OpenScam research
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. Global has dedicated agencies that handle fraud reports.
Report cross-border scams
econsumer.gov (ICPEN)
International Consumer Protection and Enforcement Network portal for reporting cross-border online scams. Reports are shared with consumer protection agencies in 40+ countries.
Interpol financial crime guidance
Interpol
International policing guidance on online financial fraud, romance scams, and investment fraud operating across borders.
Report phishing emails
Anti-Phishing Working Group
Global industry coalition for reporting phishing emails and URLs. Forward phishing to [email protected].
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
DeFi users, Crypto investors
Geographic concentration
Global
Primary channel
Website — Cryptocurrency scams
Why this group is vulnerable
DeFi users are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- DeFi exploit and rug pull losses totaled over 1.8 billion USD in 2023 according to blockchain security firm Immunefi
Source notes
- OpenScam research
Frequently asked questions
Common questions about defi yield farming trap scam
How does the defi yield farming trap scam work?+
Scammers launch a DeFi protocol offering extremely high yields to attract depositors quickly Early depositors receive payouts funded by later depositors in a Ponzi-like structure, building social proof Once sufficient funds are deposited, the developers exploit backdoors in the smart contract to drain all liquidity
What are the warning signs of defi yield farming trap scam?+
Annual percentage yields exceeding 1,000% with no clear explanation of how returns are generated Smart contracts are unaudited or the audit is from an unknown firm No timelocked contracts, multi-sig wallet, or doxxed team members
What should I do if I encounter defi yield farming trap scam?+
Research the protocol's smart contract audit reports and team credentials before depositing any funds Be skeptical of yields that seem too good to be true — sustainable yields in DeFi are typically single or low double digits Start with small test amounts and verify you can withdraw before committing larger sums
Who is most at risk for defi yield farming trap scam?+
This scam primarily targets DeFi users, Crypto investors. It is most commonly reported in Global and typically appears on Website.
Is defi yield farming trap scam still active?+
DeFi yield farming trap scam is currently on our watch list. It has been reported across US, UK, AU, CA. Last updated 2026-04-04.
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What to do first
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What to do first
Treat mining-hosting platforms as unverified until you confirm the business, facility, and payout reality independently.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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