Cryptocurrency & Investment Scams
Investment scams, especially ones using cryptocurrency, now cause some of the largest losses of any fraud, often wiping out people’s life savings or retirement. Many start with a friendly message from a stranger and build trust over weeks before asking for money.
- Everyone
- Older adults
Photo: fake trading app showing huge gains on a phone screen
How these scams work
- Relationship investment scams: a stranger reaches out (often by a “wrong number” text, social media or a dating app), becomes a friend or romantic interest, then shares how they’re getting rich trading crypto and offers to help you.
- Fake trading platforms: you’re directed to a website or app that shows your “investment” growing fast. It’s fake. When you try to withdraw, you’re told to pay “taxes” or “fees” first.
- Celebrity and influencer endorsements: fake ads or deepfake videos of famous people promoting an investment.
- Crypto ATMs: scammers in many schemes (fake police, fake bank, fake tech support) tell victims to withdraw cash and feed it into a crypto ATM.
- Pump-and-dump and fake coins: new tokens hyped online, then abandoned.
Red flags
- Guaranteed returns or “no risk”
- Pressure to invest quickly or keep it secret
- Someone you’ve never met in person guiding your investments
- Being asked to pay in cryptocurrency, or to deposit cash into a crypto ATM
- Having to pay more to withdraw your own money
- An unknown app or website not available in official app stores
Only scammers demand payment in cryptocurrency. No real business, government agency, bank or utility will tell you to pay in crypto or use a crypto ATM.
Protect yourself
- Never invest based on advice from someone you only know online.
- Check whether an investment professional is registered using FINRA BrokerCheck or the SEC’s adviser search.
- Be skeptical of any investment promising big, fast returns.
- Talk to a trusted person before moving large amounts of money.
If you’ve been scammed
- Stop sending money; don’t pay “withdrawal fees.”
- Report to the FBI at ic3.gov and the FTC at ReportFraud.ftc.gov. Include wallet addresses and transaction IDs.
- Contact the crypto exchange or ATM company you used.
- Watch for “recovery” scammers who promise to get your money back for a fee.
Losing money to a scam is not a sign of stupidity; these are professional criminal operations. If you’re struggling, reach out for support. See Mental Health & Suicide Prevention.
Standards & references
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