Social engineering is when scammers target people rather than computer systems. Instead of breaking in, they trick you into opening the door: revealing a password, your seed phraseSeed phraseA list of 12 or 24 words that backs up every key in your wallet, so whoever has the words can restore the wallet and take the crypto. or a code, installing software or sending money. The best technical security won't help much if the scammer gets the keys straight from you. PhishingPhishingA scam where criminals pretend to be a trusted company or authority to get you to hand over passwords, card details or your seed phrase. is one form of social engineering.
How does social engineering work?
Scammers exploit human nature: trust, helpfulness, fear and time pressure. Common tactics include:
- Fake support. Someone contacts you on social media, such as Telegram or Discord, offering to fix a problem with your wallet. All they need is your seed phrase.
- A call from "the bank" or "the police" telling you your account is at risk and you need to move your money somewhere "safe".
- Remote access. You are offered help buying crypto and told to install an app such as AnyDesk. The Icelandic police specifically warn about this. The scammer can then see your screen and control your computer.
- An unexpected electronic ID request, while someone on the phone tells you to approve it.
Romance scamsRomance scamA scam where someone builds an online romance, often over months, to get the victim to send money or crypto. and investment scamsInvestment scamA scam that promises big, safe returns on an investment, often in crypto, while the scammers simply take the money paid in. use the same methods, just over a longer period.
How do you protect yourself?
- No legitimate service will ask for your seed phrase, password or codes.
- If someone calls and pressures you, hang up and call back on the official number.
- Never give a stranger access to your computer or phone.
- Take your time. Pressure to act fast is one of the clearest signs of a scam.
If you have been scammed, contact your bank straight away and report it to the police through Ísland.is.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.