Crypto Recovery
June 12, 2026
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DeFi Scams: How to Protect Your Decentralized Finance Investments
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Staff Writer
The Rise of DeFi Fraud
Decentralized Finance (DeFi) has opened up new opportunities for investors, but also new avenues for fraud. Smart contract vulnerabilities, flash loan attacks, and governance exploits are just a few of the risks in the DeFi space.
Common DeFi Scams
Rug pulls, where developers drain liquidity pools, are the most common DeFi scam. Other schemes include fake yield farms, malicious smart contracts, and oracle manipulation attacks.
Recovering DeFi Losses
Recovering funds lost in DeFi scams is challenging but not impossible. FundSheilds team has experience tracing transactions across multiple blockchain protocols and working with decentralized exchanges to identify perpetrators.