How to Avoid Crypto Scams: Common Schemes and Red Flags

Crypto scams don’t usually look like scams at first. They look like a friendly wrong-number text, a new match on a dating app, a slick trading app showing fast profits, or a panicked call saying your bank account has been hacked and you need to move your money to a “safe” crypto wallet.

They work because crypto payments are fast, global and usually impossible to reverse. Once you send coins to a scammer’s wallet, there’s no bank to call for a chargeback.

The scale is huge. In its 2025 Internet Crime Report, the FBI said cryptocurrency investment fraud was the highest source of financial losses reported to its Internet Crime Complaint Center (IC3) in 2025, at $7.2 billion. The FBI also says most victims never report, so real losses are likely higher.

This guide explains the most common schemes, the red flags and what to do if you’ve been targeted.

Why crypto is a favorite tool for scammers

Scammers like crypto for 4 reasons:

1. Payments are irreversible. A blockchain transfer can’t be undone by your bank.
2. It moves fast and across borders. Funds can be sent overseas and split across wallets in minutes.
3. It’s confusing to newcomers. Many victims don’t know what a real exchange or wallet looks like, so a fake one is easy to pass off.
4. Crypto ATMs make it easy to convert cash. Scammers can talk a victim through feeding cash into a kiosk and scanning the scammer’s wallet QR code.

The FTC puts it simply: only scammers demand payment in cryptocurrency. No legitimate business, government agency or law enforcement office will insist you pay in crypto.

The most common crypto scams

Pig butchering (fake investment relationships)

This is the costliest scheme. It starts with a “wrong number” text, a social media message or a dating app match. Over weeks, the scammer builds trust, then mentions how much they’ve made trading crypto or gold. They walk you through opening an account on a trading platform that looks real but is controlled by the scammers. Your balance appears to grow, so you invest more. When you try to withdraw, you’re told to pay a “tax,” “fee” or “deposit” first, and the money is never released.

The FBI says these schemes are largely run by organized criminal groups based in Southeast Asia, often using people trafficked into scam compounds. We cover each stage in our deep dive on pig butchering scams.

Romance scams

Classic romance scams overlap with pig butchering but can be simpler. A long-distance partner you’ve never met in person has an emergency: a medical bill, a frozen account, a customs fee. They ask for crypto because it’s “faster.” The FTC warns that any online love interest who asks for money or investment advice is a scammer.

Fake exchanges and trading apps

Scammers build websites and apps that copy the look of real exchanges, sometimes with similar names. Some are even listed briefly in app stores. You’re often sent there through a link from a “mentor,” a group chat or an ad. Signs include:

• You found it only through a link someone sent you.
• Customer support exists only on WhatsApp, Telegram or in-app chat.
• Withdrawals require extra fees, “verification deposits” or a minimum balance.
• The domain was registered recently or doesn’t match the company name.

Government, bank and business impersonation

A caller says they’re from your bank, the FTC, the IRS, Amazon or tech support. Your account is compromised, and to protect your money you must withdraw cash and deposit it into a crypto ATM, or move it to a “secure wallet.” That wallet belongs to the scammer. In a supplemental 2025 report, the FBI said it received more than 13,400 complaints involving crypto kiosks with reported losses over $388 million, and more than half of complaints came from people over 50. Our guide to bank impersonation scam calls covers how these calls sound.

Celebrity giveaways and fake tokens

Deepfake videos and hacked social accounts promote “double your bitcoin” giveaways or new tokens that will “go to the moon.” Send 1 coin, get 2 back. You never get anything back. Learn how to spot a deepfake before trusting any celebrity crypto video.

Job and task scams

You’re offered easy remote work “rating apps” or “boosting products,” paid in crypto. To release earnings or get bigger tasks, you must deposit your own crypto first. The balance is fake.

Recovery scams

After losing money, victims are often targeted again by “recovery” firms, fake lawyers or people claiming to work with the FBI or IC3. They charge an upfront fee to trace and recover your crypto. In an August 2025 alert, the FBI warned about fictitious law firms targeting crypto scam victims, and IC3 has said it doesn’t work with private firms to recover funds. The US government doesn’t charge for law enforcement help.

Red flags checklist

Key takeaway: The moment someone you met online steers you toward a crypto platform, or anyone asks you to pay to get your own money back, stop. Those 2 signs alone catch most crypto scams.

How to protect yourself: 7 practical steps

1. Find platforms yourself. Type the exchange address directly or use the official app store listing from a company you’ve researched. Never use a link from a new contact.
2. Check registration. US exchanges should be registered with FinCEN as money services businesses and licensed in your state. Securities offerings can be checked with the SEC’s tools, and futures firms with the National Futures Association.
3. Test withdrawals early. If you’re unsure about a platform, try withdrawing a small amount. Excuses or new fees are a giveaway.
4. Never share your seed phrase or private keys. Anyone who has them can drain your wallet. No real support agent will ask.
5. Use strong account security. Turn on two-factor authentication or passkeys on exchange accounts, and keep your email secure.
6. Talk to someone you trust. Before sending money, run it past a family member, friend or your bank. Scammers depend on secrecy.
7. Set a family safe word. It helps stop voice-cloned “emergency” calls. See our guide to AI voice cloning scams and family safe words.

Where to report a crypto scam

Report even if you didn’t lose money. Reports help investigators connect cases and, sometimes, freeze funds.

When you report, include wallet addresses, transaction IDs (hashes), dates and amounts, website or app names and screenshots of conversations. The FBI recommends including as much transaction detail as possible.

What to do if you’ve already sent crypto

1. Stop sending money. Don’t pay any “fee” to release a withdrawal. It will be followed by another fee.
2. Cut off contact with the scammer, but save every message first.
3. Report to IC3 and the FTC right away, plus the exchange you sent from.
4. Secure your accounts. Change passwords, turn on two-factor authentication and check for remote access software if a scammer had you install an app.
5. Watch for recovery scams. Anyone who contacts you promising to get your money back for a fee is likely part of the same scheme, or a new one.
6. Get support. The FBI’s victim services and AARP’s Fraud Watch Network helpline offer help to victims.

Our step-by-step guide on what to do if you got scammed covers bank disputes and identity protection in more detail. For the rules behind exchanges and kiosks, see who regulates crypto in the US.

For businesses: protecting customers and staff

If you run a business, scammers may impersonate your brand or target your employees. Train staff to recognize impersonation and payment-redirection scams through security awareness training, and publish a clear statement that you’ll never ask customers to pay in crypto unless that’s genuinely a payment option you offer.

The bottom line

Nearly every crypto scam follows the same playbook: build trust or create fear, move you to a platform or wallet the scammer controls, then invent reasons you must pay more. Find platforms yourself, ignore guaranteed returns, never pay to withdraw your own money and report quickly at ic3.gov. If something feels off, pause and ask someone you trust before you send anything.

Sources

• FBI IC3: 2025 IC3 Annual Report — $7.2 billion in crypto investment fraud losses, underreporting and organized crime groups
• FBI IC3: Crypto kiosk complaint data (PSA) — more than 13,400 kiosk-related complaints and over $388 million in 2025 losses
• FTC: What to know about cryptocurrency and scams — common scam types, red flags and where to report
• FBI: Fictitious law firms targeting cryptocurrency scam victims — recovery scam warning signs
• FBI: Cryptocurrency investment fraud victim resources — victim guidance and reporting