Zero Transfer - the sneaky crypto scam you've never heard of

Investy.ai May 27 2025

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If you’ve been in crypto for a while, you already know scams are running wild. But there’s a new trick making the rounds that’s catching even experienced users off guard. It’s called the zero transfer scam. And it’s costing people millions of dollars. The worst part? You might not even realize it’s happened until it’s way too late.

Let’s break it down in a way that’s easy to understand, especially if you’re not deep into the technical side of crypto.

What is a Zero Transfer scam in crypto?

A zero transfer scam happens when someone sends a transaction of zero crypto from your wallet to a fake address that looks almost identical to one you've used before. It sounds harmless at first. No money was moved, right? But this is where the trap is set.

That fake address now appears in your transaction history. Later, when you go to send real crypto and you copy what you think is the correct address from your past transactions, you could be copying the scammer’s lookalike address instead. Once you hit send, the funds are gone for good.

How address poisoning tricks you

This scam uses something called address poisoning. Crypto wallet addresses are long and messy. Most people just glance at the first few and last few characters to double-check. Scammers know this and create addresses that mimic those beginning and ending sections. To you, it looks familiar. To them, it’s game on.

Imagine sending USDT to a friend. A few days later, you want to send more. You go back to that transaction in your wallet history and copy the address. But the scammer’s zero transfer has now placed their fake address in that history, and that’s the one you accidentally pick. Just like that, your money is gone.

Why this scam is so dangerous for non-tech users

This scam is dangerous for everyone, but especially for people who are new to crypto or aren’t super technical. It doesn’t ask for your seed phrase. It doesn’t ask you to click a suspicious link. It doesn’t even need your approval. All it takes is a moment of distraction or a little bit of trust in your own habits.

Many people already feel overwhelmed with crypto. There are private keys, gas fees, chains, tokens, and more. When even your wallet history, something you thought was safe, can’t be trusted, it becomes a lot harder to feel confident.

How to stay safe without getting too technical

First, stop relying on your transaction history as your personal address book. If you’re sending funds to someone, always get the address directly from them or from a source you trust. Copying from history is what the scammer is counting on.

Second, if your wallet allows it, start labeling trusted addresses. Giving your saved contacts names will help you spot fakes more easily and add some visual clarity to all those jumbled strings.

Also, get into the habit of checking the entire wallet address. Not just the first four or last four characters. Yes, it takes an extra five seconds, but it might save you a lot more than that in the long run.

Are wallets doing enough to stop these scams

The short answer is no, not yet. Some wallets are starting to add safety features like warnings for new addresses or letting you label the ones you trust. But very few are doing anything about zero-value transfers or spotting address poisoning patterns.

There are companies working on AI tools that can detect these scams before they happen, but those tools aren’t built into most wallets yet. And most people don’t even know they exist. Until those protections become standard, the responsibility mostly falls on the user.

What are the red flags to watch for

If you ever see a transaction where someone sent zero tokens and you didn’t do it yourself, that’s your first warning. It means someone is testing your wallet. They’re trying to sneak into your history without setting off alarms.

Another red flag is seeing new or unfamiliar addresses in your history that you don’t recognize. If something feels off, pause and double-check. You’re never in too much of a rush to avoid getting scammed.

One more thing to look for is whether the address you’re sending to has ever received funds before. Some wallets will show you that information. If it’s a completely fresh address, that should raise questions.

Final thoughts

Crypto scams aren’t always loud and obvious. They don’t always come in the form of a sketchy website or a fake influencer. The zero transfer scam is proof that some of the most effective attacks happen quietly and depend on your own habits.

Stay cautious. Double-check everything. Don’t trust your history blindly. In crypto, looking twice can literally save your wallet.