Crypto scams: how fake investment sites and crypto payment demands work
Quick answer
Two scams dominate: a new online contact who steers you to a fake crypto investment site, and anyone who demands payment in crypto. The FTC says only scammers demand crypto, and the FBI says never pay fees to withdraw. Stop sending money, and report it at ic3.gov and ReportFraud.ftc.gov.
- Comes by
- Social media, Text, Website, Email
- First reported
- Latest official alert
- (FBI IC3)
- Last updated
How it works
The FBI describes the investment version step by step. Criminals, usually overseas, contact you on dating apps, social media, professional networking sites or messaging apps using a fake identity. They build trust, often as a romance or friendship, then bring up cryptocurrency and claim to be an expert or to know one.
They steer you to a crypto site or app they control, show fake profits and encourage bigger deposits. When you try to withdraw, you're told to pay fees or taxes first. The money never comes back. The FBI reported over $2 billion in losses from these schemes in 2022.
The second version is a payment demand. Someone posing as a government agency, a business or your bank tells you to pay in cryptocurrency. The FTC says no legitimate business or government agency demands payment in crypto.
What they're after is money, and often more of it each time.
Red flags
- A person you met online gives you investment advice or wants to teach you to invest in crypto
- A trading site or app you can't verify, shown to you by a contact
- A promise of guaranteed or low-risk returns
- Fees or taxes to pay before you can withdraw
- Any demand to pay in cryptocurrency, including for taxes or fines
- Someone offering to recover lost funds for a fee
Example message
Hi, we matched a while ago. My uncle taught me how to trade crypto and I've been making steady profits. I can show you the platform: [link]. Start small, you can withdraw any time.
What to do
- 1
Stop sending money
Don't pay any more fees or taxes to withdraw. The FBI says that's part of the scheme.
- 2
Don't pay recovery services
The FBI lists services that promise to recover lost funds as a red flag.
- 3
If you sent crypto
Contact the exchange you used and tell them it was fraud. The FTC notes crypto payments are very hard to reverse, so move quickly. Keep the wallet address and transaction ID.
- 4
If you gave personal details
Change passwords, turn on two-step verification and consider a credit freeze. Our guide on what to do after a data breach covers the steps.
- 5
Verify before you invest
Look up any platform yourself and search its name with the words review, scam or complaint.
Report it
Check if your details are exposed with Serus
Scammers find your number and address on data brokers and people-search sites. Serus removes them.
Why you got it
Scammers don't pick targets at random. They buy or look up names, phone numbers, email addresses and home addresses from people-search sites and from breach dumps, then use them to make a message feel personal. The first message often uses your name, your city or something from your public profile to feel like a real match or contact. Serus finds the data brokers and people-search sites that list you where you live and removes you from them, and it alerts you when your details show up in a breach, so fewer scammers can reach you.
Official alerts
Frequently asked
Is it normal to pay fees to withdraw crypto profits?
No. The FBI lists upfront fees or taxes to withdraw as a red flag of an investment scheme.
Can I get my crypto back?
It's very difficult. The FTC says to contact the company you used to send the money and ask for a reversal, but don't expect one.
Does anyone legitimate demand crypto payment?
No. The FTC says no legitimate business or government agency demands cryptocurrency.
What if I haven't lost money yet?
The FBI asks you to report suspected fraud at ic3.gov anyway.
Sources
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