Guides / Scam-proof
How to Spot a Crypto Scam: A Builder's Checklist
Ten red flags to check before you send a dime, and what to do if someone already got you.
This guide has no affiliate links. It's general education, not financial advice. See the disclaimer.
I've lost over $12,000 to crypto scams, so I don't write this from a high horse. I write it as somebody who paid for the lesson.
On a job you walk the site before you swing a hammer. You check for soft spots, bad wiring, and anything that doesn't add up. Crypto deserves the same walk-through, because the people trying to take your money are organized, patient, and good at what they do.
Why this matters: the numbers
| What was reported (2025) | Amount |
|---|---|
| Losses in crypto-related complaints to the FBI [1] | $11.366 billion |
| Crypto-related complaints to the FBI [1] | 181,565 |
| Losses to crypto investment fraud, the single biggest loss category [1] | $7.2 billion |
| Losses from crypto ATM and kiosk scams [1] | $389 million |
| Losses reported to the FBI by people aged 50 to 59, all internet crime [1] | $3.7 billion |
| Investment scam losses reported to the FTC, all types [5] | Over $7.9 billion |
The FBI says crypto investment scams are mostly run by organized criminal groups based in Southeast Asia. They're long cons built on psychological manipulation and an appearance of legitimacy.[1] This isn't a kid in a basement. It's an operation.
How the most common con works
Per the FBI, here's the usual play, step by step:[1]
- Contact comes out of nowhere: a text, a social media message, an ad, or a dating app.
- They move you fast to a private messaging app.
- You're introduced to "insiders" or an investment group who say they'll guide your crypto or gold trades.
- You send crypto to their platform or app, and it shows you growing profits. Those profits are fake.
- They offer loans or pressure you to put in more.
- When you try to withdraw, suddenly there are "taxes" or "fees" to pay first. Then they vanish with everything.
- Later, someone shows up offering to recover your money for a fee. That's a second scam.
The FTC adds that some people get a small "test" withdrawal to convince them it's safe to go all in.[7]
The checklist: 10 red flags
If you can check even one of these, stop. Don't send anything.
- They want to be paid in crypto. The FTC says only scammers demand payment in crypto. No real business or government agency requires it to buy something, pay taxes or fines, or "protect" your money.[3]
- They guarantee profits or say there's no risk. Only scammers guarantee big returns, and nothing about crypto is low-risk.[2][4]
- Someone you met online wants to teach you to invest. A match or new online friend who brings up crypto investing is running a scam, per the FTC.[2][6]
- The first contact came out of the blue. An unexpected text, DM, ad, or "wrong number" message that turns into an investing chat is how the FBI says these start.[1]
- They want you on a private chat app fast. Moving off the original platform quickly is part of the playbook.[1]
- You can't withdraw without paying first. "Pay taxes or a fee to unlock your money" is the final squeeze before they disappear.[1]
- They tell you to use a crypto ATM. Someone directing you to feed cash into a crypto kiosk or scan their QR code is a warning sign. The FBI logged 13,460 complaints and $389 million in losses tied to crypto ATMs in 2025.[1]
- A "celebrity" will multiply what you send. Celebrities aren't contacting you on social media, and "free money" offers are always fake.[2]
- Big claims, no details. If they can't plainly explain where your money goes and how it earns, walk away. Honest professionals will show you the details.[2]
- Someone offers to recover money you already lost. The FBI warns that victims get targeted again by "recovery" scams.[1]
A builder's rule of thumb
Measure twice, cut once. If it needs to happen today, needs to be secret, or needs crypto, it's a no. Real deals survive a night's sleep and a phone call to someone you trust.
If you think you've been hit
- Stop sending money. Don't pay any "fee" to unlock or recover funds.[1]
- Contact the company you used to send it. Tell them it was a fraudulent transaction and ask them to reverse it if possible. Crypto payments usually can't be reversed, but ask anyway.[3]
- Report it, fast. File with the FBI at ic3.gov and the FTC at ReportFraud.ftc.gov.[1][3] The FBI says filing quickly helps its Recovery Asset Team work with financial institutions to try to freeze funds.[1]
- Save everything. Screenshots, wallet addresses, transaction IDs, usernames, and the website or app name.
- Watch for round two. Anyone who contacts you offering to get your money back for a fee is part of the problem.[1]
Bottom line
Most crypto losses don't come from the price dropping. They come from handing money to the wrong person. Slow down, check the list, and keep your money where you control it.
Sources
- FBI Internet Crime Complaint Center, 2025 IC3 Annual Report: https://www.ic3.gov/annualreport/reports/2025_ic3report.pdf
- FTC, What To Know About Cryptocurrency and Scams: https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-scams
- FTC, Did someone insist you pay them with cryptocurrency? (Aug 2023): https://consumer.ftc.gov/consumer-alerts/2023/08/did-someone-insist-you-pay-them-cryptocurrency
- FTC, Investment Scams: https://consumer.ftc.gov/articles/investment-scams
- FTC, Testimony before the Joint Economic Committee on fraud (Mar 2026): https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-testifies-joint-economic-committee-agencys-efforts-combat-fraud
- FTC, What to do if your online love interest offers to teach you how to invest (Jun 2024): https://consumer.ftc.gov/consumer-alerts/2024/06/what-do-if-your-online-love-interest-offers-teach-you-how-invest-your-money
- FTC, Reports show scammers cashing in on crypto craze (Data Spotlight, Jun 2022): https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/06/reports-show-scammers-cashing-crypto-craze