SCAM AWARENESSCryptocurrency investment fraud
Cryptocurrency investment fraud uses the excitement around digital currency to trick people into handing over money. Scammers promise fast, guaranteed, or risk-free profits. In reality, the money goes straight to them. Because cryptocurrency payments are usually very hard to reverse, losses from these scams are often permanent.
How this scam works
These scams start in many places: social media ads, text messages from a wrong number, dating apps, online groups, or fake celebrity endorsements. The scammer presents themselves as an expert or successful investor and shows screenshots of big gains. They encourage you to buy cryptocurrency and send it to a wallet or platform they recommend.
At first, your account may show impressive growth, and you might even be allowed to withdraw a small amount to build trust. Then you are urged to invest more. When you try to cash out a larger sum, you are told to pay taxes, fees, or a deposit first. The withdrawals never come, and the scammer eventually disappears.
What it can look like
EXAMPLE · NOT A REAL MESSAGEHi, I'm a crypto analyst and my private group earned 30% last month. Spots are limited. Start with $500 and I'll show you how to double it in two weeks, guaranteed. Download our trading app at [link] and send your first deposit today.
Warning signs
- Promises of guaranteed, risk-free, or very high returns.
- Pressure to invest quickly before an opportunity disappears.
- A stranger or online contact offers to coach you on crypto investing.
- You are told to buy crypto and send it to their wallet or platform.
- Withdrawals require paying fees or taxes first.
- The person cannot clearly explain how the investment actually makes money.
How to protect yourself
- Treat any promise of guaranteed profits as a scam.
- Never send cryptocurrency to someone who contacted you out of the blue.
- Research the company and person online with words like scam or complaint.
- Check whether a firm or advisor is registered at Investor.gov before investing.
- Do not download investing apps or use sites suggested by online contacts.
- Talk with a trusted, independent financial professional before investing.
If you already responded
- Stop sending money, including any fees or taxes they say are needed to withdraw.
- Contact the crypto exchange or payment service you used and report the fraudulent transfer.
- Report the scam to the FTC, the FBI's IC3, and the SEC or CFTC.
- Save wallet addresses, transaction IDs, screenshots, and messages.
- Ignore anyone offering to recover your crypto for an upfront fee; that is a common follow-up scam.
Get step-by-step recovery help →
Where to report it
- FTC: What to know about cryptocurrency and scams ↗
- File a complaint with the FBI's IC3 ↗
- Submit a tip to the SEC ↗
Common questions
How can I tell if a crypto investment is a scam?
Be very wary if someone promises guaranteed or quick profits, pressures you to act fast, or contacted you out of nowhere. Real investments carry risk, and honest advisors explain how they work. If you cannot withdraw money without paying more fees first, it is almost certainly a scam.
Can I get cryptocurrency back after being scammed?
Recovery is often very difficult because crypto transfers usually cannot be reversed. Report the theft to the exchange you used and to the FTC and IC3 right away. Be careful of people or companies who contact you promising to recover your funds for a fee; many of them are scammers too.
Where do I report cryptocurrency investment fraud?
You can report it to the FTC at ReportFraud.ftc.gov and to the FBI's Internet Crime Complaint Center at ic3.gov. Investment fraud can also be reported to the SEC and the CFTC. Tell the cryptocurrency exchange or app you used, too, and keep all records of the transactions.