Crypto scams to avoid, and the warning signs that give them away

Crypto payments are fast and usually can't be reversed, which makes them a favorite of scammers. The FBI reports billions of dollars in crypto-related fraud losses every year, and older Americans are hit hardest. Almost every scam relies on the same few tricks.

The warning signs

• Someone you've never met in person brings up investing.
• You're promised guaranteed or unusually high returns.
• You're rushed: "the opportunity closes today."
• You're asked to send crypto, buy crypto at an ATM, or move money to a "safe" account.
• Anyone asks for your wallet recovery phrase, password or two-factor code.
• You can see profits in an app but are told to pay a "tax" or "fee" before you can withdraw.

Common schemes

Romance and "pig butchering"

A friendly stranger contacts you through a dating app, social media or a "wrong number" text. Over weeks they build trust, then mention they make money trading crypto and offer to show you. You're directed to a professional-looking trading site or app that shows impressive gains. It's fake. When you try to withdraw, new fees appear until you stop paying.

Fake customer support

You search for an exchange's support number or post a question publicly, and a "support agent" reaches out. They ask you to install remote-access software, read them a code, or move funds to a "secure wallet." Real support teams never ask for your password, two-factor codes or recovery phrase, and they never ask you to move funds.

Impersonation and giveaways

Fake accounts or deepfake videos of celebrities and company founders promise to "double" any crypto you send. Nobody gives away crypto this way.

Crypto ATM and government impostors

A caller claiming to be from the IRS, police, a bank's fraud department or a utility says you must pay immediately by depositing cash into a crypto ATM. Government agencies and banks never ask for payment in crypto.

Phishing and wallet drainers

Look-alike websites, fake app-store apps and malicious links ask you to "connect your wallet" or sign a transaction. Signing can give the attacker permission to take your tokens. Type exchange addresses yourself, use bookmarks, and read what you're approving.

Recovery scams

After a loss, victims are often contacted by "recovery experts" or "blockchain investigators" who promise to retrieve stolen funds for an upfront fee. This is almost always a second scam.

Protect yourself

1. Buy crypto only through well-known platforms you navigate to yourself.
2. Never share your recovery phrase, and keep it offline.
3. Use an authenticator app or security key, not text messages, for two-factor authentication.
4. Talk to someone you trust before sending money at a stranger's suggestion.
5. If it sounds too good to be true, walk away.

If it happened to you

Stop sending money. Report it to the FBI at ic3.gov and to the FTC at reportfraud.ftc.gov, and contact the exchange you sent funds from. Save every message, wallet address and transaction ID. Be wary of anyone who then contacts you offering to recover the money.