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Cryptocurrency pump-and-dump schemes: Everything you should know about these scams

Don’t be the victim of a rug pull.

Cryptocurrency fans view Bitcoin, Ethereum and Dogecoin as the future of money for the globe. The underlying blockchain technology allows crypto to work by creating a digital ledger that records transactions, which would seemingly create a safer form of currency. But where there’s money to be made, scammers aren’t far behind.

Crypto pump-and-dump schemes are designed to take advantage of people while making some big money for scammers. They generally involve influencers who receive financial incentives for telling people to buy a certain digital coin in order to raise its value. Once the value goes up, the scammers and influencers sell their coins and pocket the profits, while everyone else sees their investments lose value.

These schemes mark the latest twist in the ever-changing story of cryptocurrencies, which have created some millionaires while bankrupting others through their persistent volatility. Even Dogecoin, a cryptocurrency created as a joke, garnered mainstream attention thanks to high-profile figures such as Tesla CEO Elon Musk, who said at last week’s B conference that he «pumps, but doesn’t dump.»

He’s not the only one.

Earlier this month, popular esports organization FaZe Clan suspended multiple members who participated in a crypto pump-and-dump disguised as a charity drive while taking home tens of thousands of dollars.

With cryptocurrencies becoming easier to develop, scammers are taking advantage of people who have developed FOMO, or «fear of missing out,» and are looking to jump on new crypto coins in hopes of getting rich.

Here’s what you need to know about crypto pump-and-dumps.

What is a pump-and-dump scam?

A pump and dump is a securities scam usually involving stocks. Scammers create false hype about a stock in order to generate interest. Once investors start buying shares, the price of the stock goes up. When the price reaches a certain point, the scammers behind the fake hype sell all of their shares. This causes the stock price to plummet, which leaves new investors holding the bag.

The movie The Wolf of Wall Street portrayed the infamous pump-and-dump scam conducted by Stratton Oakmont investment firm in the ’90s.

How does this scam work with cryptocurrency?

It doesn’t work much differently than with stocks. A certain crypto asset is pumped up by people in order to make the value increase.

«As the prices rise, the pump creators dump their assets into the FOMO they’ve generated, resulting in a price crash that leaves the new buyers holding a bag of the assets that now have a lower value than they were purchased at, creating significant and often unrecoverable losses,» said Douglas Horn, chief architect of Telos Core Developers.

What’s different is what’s used for the pump-and-dump. Bitcoin, Etherereum and Dogecoin are well-established cryptocurrencies, and it takes someone with the following of Musk to increase or decrease their value. However, since creating a whole blockchain system for a currency takes a lot of time and effort, those knowledgeable about coding can create their own crypto tokens, which are digital assets using an already existing blockchain like Bitcoin or Ethereum.

These tokens, also referred to as coins, can be created easily like Shiba Inu, which the developers have referred to as a «Dogecoin killer» in a tongue-in-cheek manner. Developers can also create billions of these coins, which in turn means they go for fractions of a penny. One Shiba Inu token, for example, costs $0.0000065, so you can buy 100,000 tokens for less than $1.

Since someone can create billions of tokens easily that cost hardly anything, all that’s needed is to convince enough people to buy these super cheap coins. This can be done through Discord channels, forums or social media, or by getting an influencer to promote the coin in exchange for their own trove of coins.

If the scammers have 1 billion tokens worth $0.000001 then that’s only worth $1,000. But if they can increase the value of a token by just one decimal point, their stash of coins is now worth $10,000. If they dump it quickly, that’ll cause its value to crash.

Another small difference with the crypto pump-and-dump is the term. While it’s known as a pump-and-dump, in crypto circles the scam is referred to as a «rug pull,» as in the rug was pulled right out from under the investors. Part of enticing people to buy these super cheap tokens is to say they’re «rug-proof,» which means there are measures in place to prevent people who have a large number of coins from selling them within a certain time period.

What are some examples of cryptocurrency pump-and-dumps?

In July, four members of the FaZe Clan participated in a pump-and-dump for a token called SaveTheChildren. The pro gamers, along with other influencers, pushed the coin to their followers. Once the price increased, they began selling off the tokens they were given to be part of the scam, with some making an estimated $30,000.

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Another coin called SafeTrade was sold as «rug-proof» earlier this year. Once people started buying, the organizers sold their coins and left everyone else in the dust.

A 2020 study from the University of Technology Sydney and the Stockholm School of Economics in Riga found 355 instances of crypto pump-and-dump scams over the course of seven months. The organizers of these scams made millions.

Are pump-and-dump scams illegal?

For stocks, yes. For cryptocurrency, no.

The Securities and Exchange Commission is the government regulatory agency that investigates securities scams such as insider trading and pump and dumps. It doesn’t yet have similar rules for cryptocurrency, and doesn’t plan on implementing crypto regulations, at least for 2021.

How do you avoid crypto pump-and-dumps?

It’s important to understand if FOMO is contributing to your decision on whether to invest in a cryptocurrency. It may seem like everyone is getting rich off of Bitcoin or Dogecoin, but that’s not the case.

The next is to do your homework. Crypto coins or tokens can be created fairly easily by people who understand coding. If there’s a new coin that’s supposedly going to make you rich, do some web searches to learn more. The initial coin offering, or ICO, will have a «white paper» that offers details about the coin, who’s behind it, what their objective is and so on.

Then there’s a matter of the buzz that’s being generated. A way scammers get the word out about their coin is going into spaces where people are interested in cryptocurrency, such as Discord channels, social media and forums. If all of a sudden some person starts hyping up a brand new token, there’s a good chance they’re pushing a scam.

Be wary of any influencer who you may follow who hardly mentions cryptocurrency and randomly begins promoting a token. In the case of the FaZe Clan members, they promoted coins with a social media campaign and gave out thousands of free coins to their followers, which in turn entices other followers to buy coins — FOMO strikes again. If you’re going to take financial advice, get it from a professional and not someone whose claim to fame is being good at a video game.

Last, if you’re still interested in investing, then don’t invest more than you’re willing to lose. It’s possible that with the right timing, an investor could make money off a pump-and-dump, but it’s better to assume that the money you’re using to buy tokens will be gone forever.

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SNAP Benefits Expire Tomorrow. Here Are 3 Easy Ways to Help the Food Insecure

States are scrambling to find ways to offer emergency food relief and aid amid the federal government shutdown.

Supplemental Nutrition Assistance Program (SNAP) benefits are expiring tomorrow amid the nearly one-month-long government shutdown. Based on 2024’s fiscal year, nearly 42 million low-income Americans relied on SNAP to afford groceries and receive crucial food assistance. 

States are scrambling to find ways to offer emergency food relief and aid after Nov. 1. Over two dozen states have sued the Trump administration for not funding SNAP. And some online companies are stepping in to help, including HelloFresh and DoorDash. 

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Why SNAP benefits are expiring and why it matters

The Department of Health and Human Services’ website notes that the federal government shutdown is impacting November SNAP benefits and the Supplemental Nutrition Program for Women, Infants, and Children (WIC). Starting next month, recipients will only be able to access funds from previous months on their EBT cards. 

Since the shutdown began on Oct. 1, federal funding for multiple agencies has come to a halt. Many federal workers, such as TSA employees and air traffic controllers, have either been furloughed or missed paychecks due to the shutdown. Now SNAP — a Depression-era government-funded program that is also commonly referred to as food stamps — is at risk.

According to data from the Center on Budget and Policy Priorities, in 2024’s fiscal year, more than 62% of people who received SNAP benefits were families with children. The average SNAP benefit for one household member was $163 per month. 

According to CNN, if the government doesn’t find a solution within the next two days to fund SNAP, the program’s benefits will be cut off for the first time in its history.

«The well has run dry. At this time, there will be no benefits issued on November 1,» a message at the top of the USDA’s website states. 

Democratic leaders from 25 states are behind the lawsuit filed Tuesday against the Trump administration for its refusal to use a $6 billion contingency fund to maintain SNAP. Point 5 of the lawsuit, which Politico shared, reads: «USDA suspended SNAP benefits even though, on information and belief, it has funds available to it that are sufficient to fund all, or at least a substantial portion, of November SNAP benefits.»

1. Go online and find a food bank near you

If you aren’t reliant on SNAP, there are ways you can help those who are. To find a food bank near you, visit Feeding America’s website and type in your Zip Code. Some state government websites provide similar information, but not all do. You can donate food or volunteer to work in food banks.

You can also look for ways to help your community. Check charity, nonprofit and service organization websites, as well as mutual aid services, including community fridges, for information on local resources. Facebook groups, online forums, local schools and hospitals and religious entities are also running programs to help families buy groceries or get meals delivered. Before donating food, double-check with the organization on what is most needed.

2. See if your state offers assistance

Some state governments are activating emergency assistance programs for people and food banks, including those in California, New York, West Virginia, New Mexico, Rhode Island, Minnesota, Connecticut, and Washington. There will also be week-to-week state emergency benefits in Delaware, rent and utility payment relief in Hawaii, funding for the Temporary Assistance for Needy Families program in Kentucky and a new Emergency Nutrition Assistance initiative to distribute funds in Virginia. 

Some other states have also declared states of emergency or ordered the National Guard to assist in distributing food.

3. Spread the word about meal delivery donations

Donations and charity alone won’t address the food needs of more than 42 million people, but temporary measures can help alleviate some hardship during the benefit suspension for some households.

Food delivery company DoorDash has launched an emergency food response to the expiration of SNAP benefits. According to a press release, the company will deliver 1 million free meals to more than 300 Project Dash food bank partners, waive delivery and service fees for SNAP recipients, and donate food to local food banks from its DashMart stores. 

«We know this is a stopgap, not a solution. But doing nothing simply isn’t an option,» said Max Rettig, vice president and global head of public policy at DoorDash.

Food delivery service Gopuff is offering SNAP recipients a $50 credit in November for all SNAP-eligible items, which will be delivered free of charge. 

HelloFresh will donate $1 for each fall-themed meal kit purchased from its seasonal menu, up to a total of $50,000, to benefit No Kid Hungry, which helps SNAP and school meal programs. (Available during the weeks of Nov. 8 and Nov. 15, the two HelloFresh meal kits include creamy sun-dried tomato stuffed chicken with mashed potatoes and garlicky green beans; and crispy chicken cutlets and rigatoni in a creamy butternut squash sauce.) 

Although it is not related to the SNAP program, another popular meal kit, Home Chef, donates $100,000 each year to Feeding America.

How to get your $50 SNAP credit from Gopuff

If you’re a SNAP recipient, here’s how to get $50 in credit this November:

  • Make sure a SNAP EBT card has been added to your Gopuff account.
  • Add SNAP-eligible items to your Gopuff shopping cart (those items will be clearly marked if eligible).
  • Use code SNAPRELIEF1 at checkout for $25 off and free delivery from Nov. 1 to 15.
  • Use code SNAPRELIEF2 at checkout for $25 off and free delivery from Nov. 16 to 30.

How to get SNAP items delivered for free on DoorDash

If you’re a SNAP recipient, here’s how to get free delivery and no service fees on one order during November:

  • Make sure a SNAP EBT card has been added to your DoorDash account.
  • Place an order at a SNAP-enabled store on DoorDash. They will be clearly marked and include Sprouts, Dollar General, Schnucks, Food Lion, Giant Foods, Hannaford, Stop & Shop, Hy-Vee, Giant Eagle and Wegmans.
  • Use promo code SNAPDD at checkout.
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Proton VPN Promises Major Improvements For Users In Its Fall and Winter Updates

The popular VPN service says it’s adding new free server locations and a fresh VPN architecture.

Days after rolling out its early Black Friday discounts, Proton VPN released its fall and winter product roadmap, announcing the addition of five new free server locations, a new VPN architecture and a command-line Linux interface.

The new server locations — Mexico, Canada, Switzerland, Norway and Singapore — bring the total number of servers available to people on Proton VPN’s free plan to 10. Proton’s software automatically chooses the best location, but it’s possible to choose a server manually as well.

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Proton says it’s developing a new VPN architecture to develop reliable apps more quickly and with quicker deployment of new features, Stealth support for Linux and, sometime in the future, post-quantum encryption.

A feature Proton says is much requested among its customers — a command-line terminal interface for Linux — is on the horizon, as well as the ability to auto-launch the company’s Linux app on startup, 

Lastly, Proton VPN will introduce a new admin console for professional customers with what it describes as: «More granular policies and security controls.» 

In a recent CNET review, Proton VPN earned high marks for privacy, speed and open-source apps. The service’s Black Friday deal offers its VPN service for $2.49 a month, a drop from the usual price of $9.99.

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Halloween Pac-Man Google Doodle Dares You to Go for the Ghosts

Jump online and guide Pac-Man, dressed in a variety of Halloween costumes, through eight levels of a haunted house.

My fellow 1980s children, our old pal Pac-Man is back. And how in the world is he 45 years old already? The new Halloween Google Doodle is here to challenge us with a spooky version of the classic arcade game on our computers and other devices, with some fun twists. 

Pac-Man himself shows up dressed in various Halloween costumes, and the power pellets he chows down are bloodshot eyeballs. The reanimated version of the game celebrates Pac-Man’s 45th anniversary, which cannot be true, because that would mean I am no longer 12 years old, but… uh, forget I said anything.

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When I first played Google’s Halloween 2025 doodle game, Pac-Man was dressed as a mummy, but when I played again later, he was in a frog costume and later still showed up wearing a strawberry hat. Keep refreshing — you might see additional Halloween costumes. He’s probably getting them all at Spirit Halloween.

Read more: Best Games of 2025 So Far

Back in the day, I plunked plenty of quarters into the arcade at Minnesota’s Maplewood Mall, but I never excelled at Pac-Man, much as I loved it. I’m not much better at the Google Doodle version. It is a real challenge on desktop, where you have to use the arrow keys to keep Pac-Man on the move. 

My CNET colleague Jon Skillings was relieved to find an easier way to play.

«On a phone or iPad, the Pac-Man doodle just needs you to move your finger on the touchscreen,» he said. «Much better!»

Eight levels? I didn’t even finish one!

The Pac-Man Google Doodle features eight levels, four of which are unique haunted-house mazes. I didn’t even get through one, but your mileage may vary.

«Pay close attention inside each house, as its design directly reflects the personality of the iconic ghost haunting it,» Google says on its Doodle page.

Google co-founders Larry Page and Sergey Brin started the Google Doodle trend in 1998 when they went to Burning Man. They redesigned the Google search engine logo with a simple stick-figure drawing behind the second «o» in the word Google, meaning it as an out-of-office message.

Since then, Google Doodles have become more elaborate, honoring everything from space missions to the invention of the bar code, and often including games and interactive elements. Pac-Man has wokka-wokkaed his way into the Google Doodle before, beginning in 2010 for the game’s 30th anniversary.

Arcade machines may come and go, but the ghosts of games past live on forever.

Google Doodles Through the Years: See 53 of Our Favorites

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