Cryptocurrency sounds like money from the future, but scammers are already here and they’re after your dollars, both real and digital! 

From fake bitcoin giveaways to romance scams to shady investment “opportunities,” crypto scams are exploding in popularity. The FBI reports that Americans lose over $9 billion per year to cryptocurrency investment fraud, and this is likely a low estimate due to underreporting.  

“Cryptocurrency scams are stealing billions and wrecking lives, and it’s not because people are careless or naive," says Erin West, founder of Operation Shamrock, an organization focused on raising awareness about pig butchering scams. "These scams are highly organized, emotionally manipulative, and designed to bypass your defenses. Talking about them openly is how we fight back.”   

However, you can fight back and keep your wallet locked up. Let's learn about the common crypto scams, how they work, and most importantly, how you can avoid them! 

What is a cryptocurrency scam? 

A cryptocurrency scam is any trick or scheme designed to steal your digital currency, like bitcoin or Ethereum. Scammers also attempt to persuade you to hand over personal information or cash under the promise of crypto riches. 

Scammers love crypto because: 

• Transactions are hard – and often impossible – to reverse. 

• There’s no central authority to report to. 

• Lots of people are interested in it but don’t fully understand how it works. 

Now that's a recipe for fraud... 

Common crypto scams to watch out for 

1. Too-good-to-be-true investments 

Someone promises massive returns on your crypto investment. Think: “Double your bitcoin in 24 hours!”   

They offer their services...and then disappear the moment you send your crypto over. 

Red flags: 

• High-pressure tactics

• Vague or confusing “white papers

•  Anonymous founders or fake celebrity endorsements – AI "deepfakes" might even be used!  

2. Heartbreaking romance scams

Scammers establish emotional relationships online, then suddenly claim to have an emergency. “I need help unlocking my wallet,” they say. Or, “Let’s invest together!” 

These scams might unfold over weeks or months. The scammers might even show you doctored charts or apps that make it appear as though you're making money. Pig butchering scams often include a romantic angle.   

Our general advice is to avoid mixing online romance and investing – if you feel pressured to break this rule, you're likely being scammed.  

Red flags: 

• Your crush won’t video chat 

• Your crush avoids in-person meetings 

• Your crush brings up crypto out of nowhere 

3. Phishing with crypto bait 

Fake emails or DMs from “Coinbase” or another crypto platform tell you your wallet is compromised. The link directs you to a fake login page where scammers attempt to steal your credentials.  

Red flags: 

• Spelling errors or weird URLs 

• Requests for your private wallet keys or passwords – never share this info! 

• Messages with a sense of urgency (“Act now or lose everything!”) 

4. Pump and dump coins 

Social media influencers hype up a new altcoin. You buy in to avoid FOMO (that's the "fear of missing out"). The price spikes...then plummets toward zero when the scammers sell off their stash and vanish. 

Red flags: 

• Unverified claims of partnerships or tech

• Paid promotions disguised as advice

• No clear use case for the coin beyond a quick buck for early adopters 

5. Fake crypto apps 

You download a legit-looking crypto app, but you get malware instead. It drains your funds or steals your login info. 

Red flags: 

• Apps not found in official app stores (like Apple App Store or Google Play) 

• No reviews or seemingly fake ones 

• Poor design, broken features, and requests for suspicious app permissions 

How to avoid crypto scams 

While both cryptocurrency and scams are constantly evolving, there are a few habits you can adopt to invest online more safely. Because cryptocurrency is largely unregulated, it is essential to exercise caution with these emerging technologies.  

1. Do your research before buying or investing in any coin or platform. 

2. Don’t trust financial advice from strangers on social media or dating apps. 

3. Use reputable crypto wallets and exchanges – stick to well-established and trusted brands. 

4. Enable multifactor authentication (MFA) for every account.  

5. Never share your private key or seed phrase with anyone, ever. 

Never click on links in alarming emails – go to your cryptocurrency account provider’s website directly. Also, don’t download apps from Test Flight (Apply) as those apps are not verified.  

Pro tip: If Tom Hanks DMs you about crypto, it’s not Tom Hanks 

Scammers love impersonating public figures. If someone famous messages you with a crypto giveaway or investment tip, assume it’s fake until proven otherwise. Today, AI is used to make realistic promo videos for scammy cryptos, so, unfortunately, you shouldn't believe your eyes when it comes to cryptocurrency ads.  

What to do if you get scammed 

If you think you’ve fallen for a crypto scam:

• Report it to the FTC at reportfraud.ftc.gov and the FBI at IC3.

• File a complaint with the crypto platform like Coinbase or Binance.

• Document everything, like screenshots, usernames, and wallet addresses.

• Tell your bank if you paid with a debit or credit card.

Even if you can’t recover your money, reporting helps stop the scam from spreading. 

Invest Safe Online and avoid the scammers 

Crypto is exciting, but scammers are hoping you’re too excited to think clearly. Slow down, double-check, and don’t let the promise of easy money cloud your judgment. 

Want a hot crypto tip? An amazing investment…is your own awareness. 

And if you want more scam-busting tips? Sign up for our newsletter and get cybersecurity info sent straight to your inbox!