How do I spot a crypto scam?

The size of the problem

In 2025, the FBI's Internet Crime Complaint Center (IC3) received 181,565 complaints involving cryptocurrency. Reported losses came to $11.366 billion.² People aged 60 and over reported the biggest crypto losses of any age group, about $4.4 billion.²

Crypto investment fraud was the biggest source of losses to Americans in 2025, at $7.2 billion.² These figures come from complaints sent to the FBI, and they can change as cases are reviewed.²

How the biggest scam works

The FBI describes crypto investment fraud, also called "pig butchering", as a confidence scam. The scammer builds a relationship online before bringing up an "investment".³

Scammers usually make first contact by text message, social media, adverts or dating apps. Then they quickly move the chat to a messaging app.² Victims send crypto to fake investment platforms and are shown fake profits, to get them to invest more.² When victims try to withdraw, they are charged "taxes and fees" before the scammers disappear with everything.²

Red flags

• A demand to pay in crypto. The FTC says only scammers do this.¹
• A promise of guaranteed profits or big returns. Only scammers make that promise, says the FTC.¹
• A new online match who wants to teach you to invest in crypto. The FTC says never mix online dating and investment advice.¹
• An offer to double any crypto you send. ethereum.org says giveaways are always scams.⁴
• A time limit that pushes you to act fast. ethereum.org says giveaway scams often set a time limit to create a false sense of urgency.⁴
• "Support staff" who message you privately. Real staff don't contact you through private, unofficial channels.⁴
• An offer to get your lost crypto back, for a fee. The FBI warns about fake "recovery" firms.⁵

Your recovery phrase is the master key

Your recovery phrase, also called a seed phrase, is the master key to your wallet. Anyone who has it can take everything in it.⁴ No real service, support agent or website will ever ask you for it.⁴

After a scam, watch for the second scam

Scammers also target people who have already lost money.^2,5 In 2024, the FBI warned about fake law firms offering to recover lost crypto. Some claimed to be working with the FBI or another government agency.⁵

Law enforcement does not charge victims a fee to investigate crimes.⁵ In 2025, the FBI received 10,516 complaints about recovery scams.²

In the US, you can report a crypto scam to the FTC, the FBI's IC3, the CFTC or the SEC.¹