This article is general education, not financial, tax or legal advice, and it does not recommend buying any asset. Crypto assets are volatile and you can lose everything you put in. Rules differ by country.
Crypto payments are fast, global and generally irreversible, which makes them attractive to scammers. Once you send funds, getting them back is usually impossible. We compared the US Federal Trade Commission's consumer guidance, a Fortune explainer, a news report on FBI advice and a Guardio article. Guardio sells security software, so we treat its product claims as unverified and use only its descriptions of scam patterns. We also left out loss statistics we could not check.
Key takeaways
- Anyone who contacts you first and steers you toward crypto investing is very likely a scammer.
- Guaranteed returns, urgency and demands for upfront payment are red flags.
- Legitimate businesses and agencies never demand payment in crypto.
- If you are targeted, stop paying immediately and report it. "Recovery" services are usually a second scam.
8 Common Crypto Scams
1. Pig butchering (romance-style investment scams)
The FBI warning reported by local news describes a scammer building a relationship, often in a way similar to romance scams, then steering the victim toward an investment. Victims are sent to a fake platform or wallet, shown fabricated early "returns" (sometimes small withdrawals are allowed) and pushed to invest more. When they try to withdraw, they are blocked or told to pay fees. Guardio lists the warning signs as promised profits with no risk, urgency, withdrawals blocked by surprise fees and a conversation that moves from a dating app or LinkedIn to Telegram or WhatsApp. The FBI summary adds that scammers often operate overseas, which makes them hard to find and prosecute.
2. Fake investment managers and celebrity endorsements
The FTC describes fake "investment managers", celebrity impersonators and online contacts who push you to buy crypto and send it to their platform. Guardio adds deepfake endorsements as a growing tactic; verify any endorsement through the person's verified account, not a link in an ad or message.
3. Impersonation of companies and government agencies
Scammers pose as banks, utilities, well-known companies or agencies, claim fraud, unpaid debts or frozen accounts, then tell you to move crypto to a "safe" wallet, often by scanning a QR code. The FTC is clear: legitimate businesses and governments never demand crypto payment. Related reading: phishing email examples.
4. Rug pulls
A new token is hyped, its price rises, then the developers drain the funds and vanish. Anonymous or unverifiable teams are a warning sign (Guardio).
5. Fake exchanges and wallet apps
Lookalike sites or apps capture logins or recovery phrases. Guardio's example is a domain with a single swapped character. Always type web addresses yourself and download apps only from official sources.
6. Giveaways and "send to receive more" tricks
Offers of free money, whether from "celebrities" or support agents, are fake, even with testimonials. The FTC says promises of guaranteed profits or free money are fake.
7. Fake jobs and advance-fee schemes
The FTC lists bogus coin launches, fake jobs that require upfront crypto fees and fraudulent check deposits. Never pay upfront to get a job.
8. Blackmail and "recovery" scams
Threats to expose compromising material unless you pay in crypto are extortion; the FTC says to report blackmail to the FBI. People who lost money are then targeted by "recovery" services that charge fees, so be wary of anyone claiming they can get your funds back.
Red Flags Checklist
- Promised profits with no risk, or "guaranteed" returns.
- Urgency: "act now" or "limited time".
- Someone you only met online offering investment advice or asking for money.
- A move to a different messaging app.
- Withdrawals blocked by surprise fees, "verification", "taxes" or minimum balances.
- Anonymous or unverifiable team members and no registration with regulators (Guardio suggests checking the databases yourself).
- Any request for your recovery phrase.
- Unexpected links, texts, emails or pop-up phone numbers.
How to Protect Yourself
- Verify everything. Scrutinise emails, links and phone numbers for subtle changes, and contact companies through official channels (Fortune).
- Research before you invest. The FTC suggests searching the company or coin name with "review", "scam" or "complaint".
- Do not approve transactions you do not understand. Prefer wallets that show clear transaction details before you sign.
- Stick to well-known, regulated exchanges. Be cautious of unfamiliar platforms offering unusual bonuses.
- Question advice. Do not treat any influencer or group as authoritative; ask whether they profit from your decision.
- Protect your wallet and accounts. See crypto wallets explained, and use two-factor authentication.
- Pause when in doubt. If something feels off, do not engage. Talk to someone you trust.
- Tell your family. Older adults and younger people interested in crypto are both common targets (Fortune).
AI-generated voices and faces make some of these scams harder to spot; see deepfake scams and AI voice cloning scams.
If You Have Been Targeted
- Stop all payments immediately. Never pay a "release", "tax" or "compliance" fee to access your own money.
- Report it. In the US: ReportFraud.ftc.gov, ic3.gov, sec.gov/tcr and cftc.gov/complaint, plus the exchange you used. Include transaction details such as addresses, amounts, dates and transaction hashes. Elsewhere, contact your national authorities.
- Contact your bank fast if wire transfers were involved; reversals are time-sensitive.
- Secure your accounts: change passwords and move funds from any wallet whose recovery phrase you shared.
Fraud and Your Website
If your business accepts crypto, fraud controls matter too; see how to accept crypto payments. Node-devs can help you design secure payment flows.
References and further reading
This guide was compiled from the sources below. We compared them, kept the points they agree on and wrote the article in our own words. Check the originals for more detail.
- What to know about cryptocurrency and scams (US Federal Trade Commission)
- How to avoid crypto scams (Fortune)
- How to spot a crypto scam (Guardio)
- FBI speaks on ways to avoid cryptocurrency scams (FirstAlert7 (KWES))
