HoneyPot: a complete breakdown of the scam scheme and protection methods

In just the first month of 2026, experts from BI.Zone Digital Risk Protection identified more than 700 fraudulent cryptocurrency projects offering profitable investments in digital assets.

There are many common schemes involving malicious websites or tools designed to steal cryptocurrency, one of which is "HoneyPot."

What is HoneyPot?

The term "HoneyPot" refers to fraudulent cryptocurrency projects. The word "HoneyPot" translates from English as "a pot of honey," and in the context of digital security, it symbolizes bait for victims.

The term "HoneyPot" originated more than thirty years ago with the emergence of early computer fraudsters. However, as the popularity of cryptocurrencies has grown, HoneyPot has become widely used in the digital asset industry.

As bait in a HoneyPot scheme, attackers typically use a seemingly profitable asset that either rapidly increases in value or offers high returns. The main tool of HoneyPot is usually a smart contract, intentionally designed with vulnerabilities that allow attackers to quickly withdraw digital assets.

Key features and how the HoneyPot scheme works

The most common version of HoneyPot involves attracting funds by creating a custom token. The scheme typically unfolds in several stages:

1. Creation of the token and smart contract

As part of the HoneyPot scheme, attackers create a smart contract and issue their own token. Usually, the smart contract includes functions that allow only the attackers to sell or withdraw the asset from wallets.

In a HoneyPot scheme, the crypto asset can be either original or a clone of a successful project. Similar cases have already occurred in the industry with cryptocurrencies like zkSync (ZK) and Shiba Inu (SHIB).

2. Promotion of the fraudulent token

Attackers promote their cryptocurrency through aggressive marketing to encourage victims to actively buy the fraudulent token. Promotion channels may include:

• Social media, including public chats and private messages
• Advertisements in search engines, social networks, and niche channels
• Dedicated websites and video blogs
• Influencers

To attract victims, attackers may artificially inflate the price of their asset or showcase high returns earned by early users.

3. Exit and disappearance

At a certain point—when the inflow of funds slows down, or the scheme becomes suspicious — organizers withdraw the collected assets and erase their digital footprint by deleting websites and social media accounts.

Specific HoneyPot schemes may vary and become more complex, but the main goal remains the same: to force users to purchase a fraudulent asset.

Even experienced users are not immune to such schemes. For example, attackers may disguise themselves as experienced traders and genuinely promote their channels to build trust, using multi-stage schemes.

The main goal is to lure victims by any means and convince them to transfer their assets to the attacker's address. To achieve this, scammers exploit common emotional triggers:

• FOMO (fear of missing out): attackers demonstrate high potential profits to push victims into quick purchases
• Greed: scammers promise fast and easy wealth, encouraging impulsive investment decisions

Signs and protection methods

Smart contract verification

When analyzing a smart contract, suspicious functions can reveal clear signs of fraud. You can check contracts using blockchain explorers such as Etherscan or specialized AI tools that automatically analyze source code.

You can also check contracts in databases such as:

• Token Sniffer
• RugDoc
• De.Fi Scanner
• HoneyPot
• RugPull Detector
• BSC Check
• TokenGuard

Seeking expert help

If you are a beginner, it is important to connect with experienced cryptocurrency investors. There are many chats and social media threads where users share insights and report scam cases.

Experienced users can quickly identify risks and warn newcomers. You can connect with experts on platforms such as Bitcointalk and Reddit, as well as crypto communities like BIC and Crypton.

Independent research and analysis

If you have some experience with cryptocurrency, you can research the project yourself.

If the project is legitimate, you can find information about it on forums, websites, the media, and social networks. If information is only found on suspicious sites or is completely absent, this may indicate fraud.

If the organizers run a channel or group, review its content. Suspicious or low-quality content can be a warning sign.

Also, check the accounts of the organizers. In some messaging platforms, you can see the account age, which can help identify scammers.

Carefully review the project's resources and websites. Legitimate projects provide legal documentation, including privacy policies, as well as detailed information about the project and its team. If a project reveals minimal information, this is a typical warning sign.

It is also useful to follow digital security channels that report detected scam cases in real time:

• CertiK
• ScamAlert
• Wu Blockchain
• Crypto Scam Tracker and others.