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Crypto 101 · Lesson 10 of 10

Crypto scams: how to spot them

Most crypto losses aren't hacks. They're people being persuaded to send money themselves.

BeginnerAbout 8 minutesReviewed October 26, 2026
The short answer

Crypto scams usually rely on persuasion rather than hacking: someone builds trust or creates panic, then gets you to send crypto, buy it at an ATM, or reveal your seed phrase. Because crypto payments can't be reversed, the money is usually gone. Americans reported more than $11 billion in crypto-related fraud losses to the FBI in 2025.

Check a situation with the scam checker

How big the problem is

The FBI's Internet Crime Complaint Center received reports of $11.4 billion in crypto-related losses in 2025, including $7.2 billion from crypto investment fraud. People aged 60 and over reported $4.4 billion in crypto-related losses, and crypto ATMs and kiosks accounted for $389 million. Many losses are never reported.

The common scams

"Pig butchering": the friendly investment tip

A stranger strikes up a conversation by text, dating app or social media ("wrong number" messages are a classic opener). Over weeks they become a friend or romantic interest, then show you their crypto "profits" and help you join a trading site. The site shows your balance growing, but it's fake. When you try to withdraw, you're told to pay "taxes" or "fees" first. You'll never get the money back.

Impersonation and Bitcoin ATM scams

Someone claiming to be your bank, the government, the police, Amazon or tech support says your account is compromised or you owe money, and tells you to withdraw cash and put it into a Bitcoin ATM or send crypto "to keep it safe." No real agency or bank does this.

Fake platforms and apps

Copycat exchange websites, investment platforms and wallet apps, often promoted through ads or by online "mentors."

Giveaways

"Send 1 ETH, get 2 back," often using deepfake videos of famous people. Nobody doubles your crypto.

Phishing and wallet drainers

Fake airdrop or mint sites ask you to connect your wallet and sign something. The signature gives a contract permission to empty your tokens. Others simply ask for your seed phrase.

Rug pulls

Developers hype a new token, attract buyers, then sell their huge share or drain the funds and disappear.

Job and "task" scams

Online "jobs" that pay small amounts for rating products or apps, then require you to deposit crypto to unlock bigger earnings.

Recovery scams

After a loss, people posing as lawyers, investigators or government agencies promise to recover your money for an upfront fee. It's a second scam.

Red flags

If you see any of these, stop
  • Guaranteed or unusually high returns.
  • Pressure to act right now, or to keep it secret from family or your bank.
  • Someone you've never met in person helping you invest.
  • Being told to pay with crypto, gift cards, wire or a Bitcoin ATM.
  • Any request for your seed phrase or private key.
  • Having to pay a fee or tax before you can withdraw.

If it happened to you

  1. Stop sending money, even if they threaten you or promise a refund.
  2. Write down everything: wallet addresses, transaction IDs, websites, usernames, messages.
  3. Report it to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov.
  4. Contact any exchange involved through its official website; it may be able to freeze funds that are still there.
  5. If you shared a seed phrase, move any remaining funds to a brand-new wallet immediately.
  6. Talk to someone you trust. Scammers rely on shame and secrecy; this happens to careful, intelligent people.
Crypto 101 · Lesson 10 of 10

Check what you learned

3 quick questions. Answers stay on your device.

1. Someone you met on a dating app shows you their crypto profits and offers to help you invest. This is most likely:
2. A caller from "your bank" says to withdraw cash and deposit it in a Bitcoin ATM to keep it safe. You should:
3. A platform says you must pay a "tax" before withdrawing your profits. This means:

All Crypto 101 lessons · Finish the course →

Frequently asked questions

Can I get my money back from a crypto scam?

Usually not, because crypto transfers can't be reversed. Report it quickly: if funds reach a regulated exchange, law enforcement can sometimes freeze them. Ignore anyone who charges a fee to recover it.

Is a Bitcoin ATM safe?

The machines themselves work as described, but they're heavily used in scams because they turn cash into crypto instantly. If anyone tells you to use one, treat it as a scam.

How do I know if a crypto website is real?

Type the address yourself, check the exchange is registered and licensed, search the name with 'scam,' and be wary if you found it through someone you met online.

Where to next

Sources

  1. Cryptocurrency and AI scams bilk Americans of billions (FBI)
  2. FBI says crypto-related fraud losses hit a record $11.4 billion in 2025 (The Block)
  3. What to know about cryptocurrency and scams (FTC)
  4. Internet Crime Complaint Center

Written for beginners and checked against the sources listed. Last reviewed October 26, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.