Explainer · Crypto Safety
Common crypto scams and the warning signs
Most crypto scams do not hack anything. They persuade you to send the money yourself, and once crypto has been sent, it is usually gone.
Quick answer
Crypto scams usually persuade you to send crypto yourself: to a fake platform, a fake official, an online romance or a "recovery" service. Warning signs are unexpected contact, pressure to act fast and unrealistic returns [6]. Crypto payments typically cannot be reversed [2].
Key points
- The FBI's IC3 logged 149,686 crypto-related complaints and $9.3 billion in reported losses in the US in 2024 [1].
- Crypto investment fraud alone accounted for $5.8 billion, about 62% of those losses (calculated from [1]).
- The FTC says only scammers demand payment in crypto or guarantee profits [2].
- Victims often do not realise: 76% of people the FBI contacted under Operation Level Up were unaware they were being scammed [1].
- After a loss, expect a second approach offering to recover your money for an upfront fee [5].
On this page
How big is the crypto scam problem?#
The most detailed official numbers we have come from the US. In 2024 the FBI's Internet Crime Complaint Center (IC3) received 149,686 complaints that involved cryptocurrency, with $9.3 billion in reported losses, a 66% rise in losses from 2023 [1]. In IC3 data, "cryptocurrency" describes the payment tool used in the crime, so the figures count crimes in which crypto was the way money was paid or moved [1].
All reported cybercrime that year came to $16.6 billion [1], so crypto was involved in about 56% of the money lost (calculated). People over 60 filed 33,369 of the crypto complaints and lost $2,839,333,197 [1]: about 22.3% of the complaints but 30.5% of the losses (calculated).
Two limits matter. These are complaints made to one US agency, so they are not worldwide totals, and fraud nobody reports is not counted at all.
- Average loss per crypto complaint
- about $62,000$9.3 billion / 149,686, calculated from [1]
- Average loss per investment fraud complaint
- about $140,000$5.8 billion / 41,557, calculated from [1]
- Investment fraud share of crypto losses
- about 62%$5.8 billion / $9.3 billion, calculated
- Victims unaware they were being scammed
- 76%people contacted under Operation Level Up [1]
What are the most common types of crypto scam?#
Regulators describe the same handful of patterns again and again. The table below lists how each one starts and what the scammer is really after.
| Scam | How it starts | What they want | Described by |
|---|---|---|---|
| Fake investment manager or platform | Contact out of the blue promising returns | Deposits into a site that shows fake gains | FTC, FCA |
| Relationship investment scam | Friendship or romance online, built over time | Larger and larger deposits, then fees to withdraw | CFTC, FTC |
| Impersonation of a government body, company or tech support | An unexpected call or message about a problem | Cash fed into a Bitcoin ATM through their QR code | FTC |
| Celebrity giveaway | A "celebrity" who will multiply any crypto you send | Your crypto, sent to their address | FTC |
| Fake job or blackmail | A job listing, or a threat to publish compromising material | Payment in crypto | FTC |
| Fake reward or airdrop | A link to claim free tokens | Your seed phrase | FBI |
| Recovery scam | An offer to get lost money back | An upfront fee | CFTC, FCA |
Sources: FTC crypto scams guide [2], FTC Bitcoin ATM data [3], CFTC relationship scam alert [4], CFTC follow-on fraud warning [5], FCA crypto scams page [6], FBI airdrop alert [7].
The fake reward pattern targets people who hold their own keys. If you are not sure what a seed phrase unlocks, read seed phrase vs private key before you click on any "claim" link.
How does a relationship investment scam unfold?#
The CFTC describes the pattern step by step. Contact usually begins online or on social media [4]. The fraudster then spends time building trust through friendship, romance or an offer to help with your financial goals [4]. Next comes a trading site or app showing what they call real-time trading information, which is fake [4]. The UK FCA warns that such professional-looking sites can manipulate their software to fake prices and returns [6].
To build confidence, the scammer may let you withdraw a small part of your "profits" [4]. When you try to take out more, you are told for the first time that you must pay fees or taxes first [4].
Why do scammers send people to Bitcoin ATMs?#
Because cash becomes crypto in seconds. The FTC explains that as soon as a victim scans a QR code the scammer provided at the machine, the cash goes straight into the scammer's crypto account [3].
The FTC reported that losses to scams using Bitcoin ATMs rose nearly tenfold since 2020, to $110 million in 2023 and $65 million in the first six months of 2024 [3]. The median reported loss in that half-year was $10,000, and people over 60 were more than three times as likely as younger adults to report losing money this way [3]. Most of these losses came from government impersonation, business impersonation and tech support scams [3].
The FBI counts crypto ATM cases separately: 10,956 complaints and $246.7 million in losses in 2024 [1]. The two agencies use different data, so the figures should not be added together.
What warning signs do regulators list?#
The UK FCA boils it down to three questions: have you been contacted out of the blue, are you being pressured to invest quickly, and are you being promised returns that sound unrealistic [6]? A yes to any of them is a reason to stop. Other agencies add their own signs:
- Someone demands payment in crypto. The FTC says only scammers do this [2].
- You are promised guaranteed profits or big returns. The FTC says only scammers make that promise [2].
- A new online contact, especially a romantic one, starts giving investment advice. The FTC's rule: never mix online dating and investment advice [2].
- A limited-time offer pushes you to act before you can think [8].
- The person claims to be an expert, a market genius or very wealthy [8].
- You are asked to pay fees or taxes before you can withdraw [4].
- Anyone asks for your seed phrase, password or a one-time code you did not request [7].
What should you do if you think you are being scammed?#
- Stop sending money
Do not pay any fee or tax to unlock a withdrawal. In the CFTC's description, that demand is part of the scam, not a step towards getting paid [4].
- Do not hand over codes or keys
The FBI says not to give passwords, seed phrases or one-time passwords to anyone who contacted you first [7]. Our page on 2FA for crypto accounts explains why codes can be phished.
- Verify through official channels
Contact the agency or company directly, using details you find yourself [5]. To check a platform, see is a crypto exchange safe.
Be realistic about getting money back. The FTC notes that crypto payments typically are not reversible, unlike card payments, which have legal protections [2]. The CFTC says that if you use crypto for an investment that turns out to be a scam, you likely will never see the money again [4].
Mistakes beginners make with crypto scams#
- Taking investment tips from a new online friend
The CFTC's core advice is not to invest on the word of anyone who contacted you unsolicited online, by app or by text [4].
- Paying to get your own money out
A demand for fees or taxes before a withdrawal is a classic sign of the relationship scam [4].
- Assuming you would notice
Three in four victims the FBI warned did not know they were being scammed [1]. Use the warning signs as a checklist, not your gut.
- Paying a recovery service upfront
Offers to recover lost crypto for a fee are a known follow-on fraud [5].
Frequently asked questions#
Can stolen or scammed crypto be recovered?
Is every crypto investment offer a scam?
No, and our sources do not say so. But any offer that shows the warning signs above deserves suspicion, and crypto rules differ by country. Read about crypto regulation and check any firm on its regulator's register before sending money.
Are these loss figures worldwide?
The bottom line#
Crypto scams work because sending crypto is fast and undoing it is close to impossible. Treat unexpected contact, pressure, promised returns, payment demands in crypto and requests for your seed phrase as stop signs, verify everything through channels you find yourself, report what happens, and ignore unsolicited offers to get the money back for an upfront fee. Read the risk disclosure before putting money into crypto at all.
Sources
- 2024 IC3 Annual Report (Federal Bureau of Investigation, Internet Crime Complaint Center).
- What To Know About Cryptocurrency and Scams.
- New FTC Data Shows Massive Increase in Losses to Bitcoin ATM Scams.
- Investor Alert: Relationship Investment Scams.
- CFTC Warns Customers to Watch for Follow-on Frauds (Release 8936-24).
- Crypto investment scams.
- Cybercriminals Defraud Hedera Hashgraph Network Non-Custodial Wallet Users Through Nonfungible Token Airdrops Disguised as Free Rewards.
- Be Smart: Check Registration & Backgrounds Before You Trade.
Education only. This page is not investment, tax or legal advice. Trading and crypto can lose you money. See our risk disclosure.
