The rise of cryptocurrency has transformed the financial ecosystem, creating unprecedented opportunities while exposing users to significant risks, including a surge in cryptocurrency scams. This study investigates public awareness and vulnerability to such scams, utilizing a modern qualitative methodology enhanced by advanced technologies. By incorporating tools such as Natural Language Processing (NLP), blockchain-based survey platforms, and Virtual Reality (VR) simulations, the research explores the socio-psychological dynamics and technical knowledge gaps contributing to individuals’ susceptibility. Data were collected through online interviews, focus groups, and immersive VR simulations, with AI-assisted tools like NVivo and ATLAS.ti used for thematic and narrative analysis. Findings reveal that technical literacy gaps, over-reliance on perceived security, and behavioral triggers such as fear of missing out (FOMO) significantly influence susceptibility to scams. The innovative methodology, combining traditional qualitative techniques with cutting-edge technologies, provided a multi-dimensional understanding of participants’ perceptions and experiences. This study highlights the critical need for targeted educational interventions and technology-driven policy measures to mitigate the risks associated with cryptocurrency scams. By leveraging advanced analytical tools and immersive technologies, this research demonstrates the potential for modern methodologies to enhance understanding and prevention strategies in an evolving digital landscape.