Table of Contents
Quick Facts
About this scam type
Investment and imposter cryptocurrency scams are designed to trick victims into sending cryptocurrency to criminals by building trust or impersonating legitimate people or organizations. They often take the form of fake investment opportunities, support scams, romance schemes, or urgent payment demands using Bitcoin ATMs or wallet transfers. These scams are effective because crypto payments are fast, feel high-tech, and are nearly impossible to reverse—making them a favorite for fraudsters.
How scammers contact victims
Scammers most often reach victims through SMS and messaging apps like WhatsApp or Telegram, but also use email, social media, fake ads, and live phone calls. Messaging channels let criminals quickly establish fake relationships, share links or QR codes, and ask for secrecy, which is why these channels are especially risky for crypto-related fraud.
Who is most at risk
Older adults (especially age 60 and up) are three times more likely to report Bitcoin ATM losses; mid-career adults age 30–49 also file the most crypto-investment complaints. Scammers target these groups because they may be new to crypto, eager to help family, or susceptible to high-return pitches and urgent, secretive requests.
Understanding the risk level
The risk level is high: reported U.S. losses to crypto-investment scams approached $4 billion in 2023 (according to the FBI) and are still rising. Funds sent via cryptocurrency are nearly always irreversible, and emotional damage to families and older adults can be immense.
Most Common Cryptocurrency Scams
How it works: The scam begins with a friendly wrong-number text or a dating app message. The scammer quickly shifts to encrypted chat apps, offers fake investment 'opportunities,' and shows screenshots of fake profits to convince victims to 'invest' (often using USDT). If victims try to withdraw, excuses and additional fee requests follow, then total communication stops. Later, new scammers may contact the same victim with a recovery offer—these are also scams.
Real Example (2025)
Hi, is this Anna? Sorry, wrong number—maybe we can be friends?
Typical Message
I’ve been earning 20% weekly on a private investment platform—I can show you how.
Red Flag Signs:
- • Unsolicited wrong-number messages, quickly shifting to crypto topics.
- • Insistence on moving the chat to WhatsApp or Telegram for privacy.
- • Screenshots of supposed 'high profits' or requests for withdrawal/tax fees.
- • Avoids video calls or meeting in person; pushes secrecy from family.
How it works: A scammer impersonates a bank, law enforcement, or a company like Amazon. They claim your money is at risk, keep you on the phone, and direct you to withdraw cash, go to a Bitcoin ATM, and scan a QR code. The code sends your money directly to the scammer, not to a real government or business account.
Common Script
Your funds must be moved to a government safe wallet immediately. Go to the Bitcoin ATM and scan the code I’m texting you.
Red Flag Signs:
- • Any demand to move or 'protect' money via crypto or Bitcoin ATM.
- • Being sent a QR code and told to keep it secret.
- • Supposed government or law enforcement personnel asking for crypto payment—never legitimate.
How it works: Criminals send emails or texts warning about 'locked' wallets or 'unusual login activity.' The links lead to websites that mimic real crypto exchanges or wallet apps to steal login details or secret backup phrases. Some scammers phone victims, claiming to be from exchange support and ask for two-factor codes or wallet access to 'secure' their account.
Phishing Email
MetaMask: Your wallet will be suspended unless you verify KYC in 24 hours.
Phishing Link
Coinbase: Account locked—click to secure
Voice Call Variation
This is Coinbase security. Please share your 2FA code so we can assist you.
Red Flag Signs:
- • Requests for your Secret Recovery Phrase or 2FA code by 'support' staff.
- • Website links that look similar to, but are not, official exchange or wallet domains.
- • Pressure to act quickly due to supposed 'security' issues.
How it works: Victims receive a message offering easy money for doing online 'product boosting' tasks or app jobs. They see fake in-app 'earnings', may receive an initial small payout, but soon are told to deposit their own crypto (like USDT) in order to withdraw larger earnings. Once deposited, the funds cannot be recovered.
Job Offer Text
You can earn $1,000/week for simple posting tasks, paid in USDT—just register and deposit a small amount to start.
Red Flag Signs:
- • Unsolicited job offers that require using crypto for payment.
- • Having to pay in order to get paid for supposedly easy work.
How it works: Scammers use deepfake videos or hijacked social media accounts to run fake 'live' giveaways. They claim users can double their crypto by sending coins to a wallet address or scanning a QR code, using well-known celebrity images or voices.
Live Stream Scam
Send 1 ETH to this address and you’ll get 2 ETH back! Offer ends in 5 minutes.
Red Flag Signs:
- • 'Send crypto to get extra back', countdown timers, or QR codes visible on livestreams.
- • Use of celebrity images or names connected to crypto offers.
How it works: After a loss, the victim is contacted by someone claiming they can recover their stolen or lost cryptocurrency for a fee. These recovery services are nearly always scams.
Recovery Pitch
We can recover your lost Bitcoin for a small upfront fee—guaranteed results!
Red Flag Signs:
- • Any demand for upfront fees for 'recovery' services.
- • Claims of 'guaranteed' recovery or of being from the FTC/law enforcement asking for a payment.
- • Contact after a previous loss.
Red Flags & Warning Signs
Top 5 Phrases Scammers Use
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1
"Go to a Bitcoin ATM now—I’ll send a QR code."
Scammers create urgency and move quickly to crypto because the money is almost impossible to get back.
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2
"Your wallet will be suspended in 24 hours—verify KYC."
Phishing attempts use time pressure and fake security warnings to trick people into giving up credentials.
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3
"Send crypto to unlock funds, taxes, or fees."
Scammers use fake tax or fee claims to get more payments from victims before disappearing.
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4
"We can recover your crypto for a small fee."
Most 'recovery' services are scam operations that promise victims money back for upfront fees.
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5
"Don’t tell your bank or advisor—this is time-sensitive."
Secrecy and urgency are pushed to keep others from intervening or questioning the scam.
Scam Warning Signs
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Unsolicited wrong-number texts that pivot to investing.Scammers use social approaches to form trust, often impersonating a lost contact.
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Requests to pay using crypto/Bitcoin ATM, gift cards, or wires.Legitimate businesses and agencies never demand crypto or gift card payment.
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Look-alike website addresses and spelling errors in exchange names.Fraudulent sites attempt to mimic real brands and trick users.
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Demands for Secret Recovery Phrase or 2FA codes.Real customer support will never request these sensitive credentials.
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Promises of 'guaranteed returns' or doubling your money.Offers returns that sound too good to be true, which is a strong scam signal.
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Pressure to move chats to encrypted apps and keep everything a secret.Scammers isolate victims from support systems and family.
Legitimate Communications
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U.S. government and utilities never demand crypto payments.Legitimate agencies use regular billing methods and never require cryptocurrency.
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Exchanges and wallets will never ask for your Secret Recovery Phrase or 2FA codes.These credentials are always private and should not be shared.
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Contact customer support through the official app or website, never from a text or link you received.Going directly to verified contacts prevents impersonation and phishing.
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Official security emails come from real company domains and never request payments.Legitimate security notices do not ask you to send funds anywhere.
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Spam texts can be forwarded to 7726 (SPAM) for review by your mobile carrier.Forwarding spam helps authorities track and block scam operations.
How to Protect Yourself
Follow these steps to prevent cryptocurrency fraud and protect your family—especially older loved ones—from new scam types.
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1.
Lock Down All Crypto Accounts With Strong Two-Factor Authentication
Enable passkeys or FIDO2 security keys for your exchange and wallet logins. Always add backup methods to your accounts in case your device is lost or stolen.
Keep two security keys in different safe locations—one at home and one with a trusted family member.
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2.
Set Withdrawal Allowlists and Turn On Security Locks
Use exchange features that restrict withdrawals to approved addresses only. Turn on settings like Kraken’s Global Settings Lock to prevent new withdrawals or address changes without a security delay.
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3.
Treat All Bitcoin ATM and QR Code Payment Requests as Scams
No legitimate business, government, or law enforcement agency will ever ask you to send money via Bitcoin ATM or QR code. End the call or message, and call the real number on your card, bank statement, or bill directly.
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4.
Verify All Messages Before Clicking
If you get a message about your crypto wallet or account, do not use any included links. Always go directly to the official app or type in the correct website address yourself. Contact support only within the official app if in doubt.
Bookmark official sites for your exchange and wallet to avoid typos that could lead to fake sites.
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5.
Regularly Review and Revoke Token Approvals for Wallets
Using tools like Etherscan’s Token Approval, check which sites and contracts have access to your wallet. Revoke any you do not recognize or no longer use, and avoid unlimited approvals that can drain your funds.
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6.
Block and Report Scam Texts Right Away
Forward any suspicious texts to 7726 (SPAM) and submit a fraud report at ReportFraud.ftc.gov to help authorities stop scams.
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7.
Talk to Your Family About Common Crypto Scams
Explain that wrong-number or romance messages followed by investment advice are red flags. Encourage loved ones, especially seniors, to call you before sending money to anyone online or by phone.
Stay ahead of scams—sign up with Lifeguard to monitor for new threats and protect your whole family.
What to Do If You’re a Victim
If you or a loved one has already responded to a scam, act quickly. Some steps can limit the damage and increase the chance of recovering lost funds.
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1.
Stop Sending Money and Cut Off Contact (Do immediately)
Immediately stop any communication with the scammer and do not send further money or information.
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2.
Secure Your Crypto Wallet or Exchange Account (Do immediately)
If you clicked a suspicious link or connected your wallet, transfer all assets to a new wallet with a brand-new seed phrase. Revoke any token approvals using Etherscan’s tool. Change your exchange password, reset 2FA, and use security holds or account locks if available. Contact official support through the app or website only.
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3.
If You Paid via Bitcoin ATM or Through Your Bank/Exchange (Do immediately)
Contact your bank immediately, the Bitcoin ATM operator or store where you made the deposit, and file a report at ReportFraud.ftc.gov.
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4.
File Reports With Authorities Within 24 Hours (Within 24 hours)
Report full details—including wallet addresses, transaction IDs, scammer phone numbers, screenshots, and involved sites—to: FBI Internet Crime Complaint Center (IC3.gov), Secret Service at CryptoFraud@SecretService.gov, FTC at ReportFraud.ftc.gov, and your state Attorney General.
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5.
Protect Against Identity Theft (Within 24 hours)
If your identification or personal information was provided to scammers, place a fraud alert or credit freeze with the credit bureaus. Monitor your credit closely and use IdentityTheft.gov for a recovery plan.
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6.
Stay Alert to Recovery Scams
Do not pay a fee to any person or company promising to recover lost crypto. Save all records of your case, as official agencies sometimes seize and return funds through legal processes (though this is not guaranteed).
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7.
Contact DOJ Elder Fraud Hotline if Needed
If you or a loved one is over 60 or under significant stress from this scam, call the Department of Justice Elder Fraud Hotline at 1-833-372-8311 for support.
See resources and file reports at consumer.ftc.gov and IC3.gov.
Frequently Asked Questions
Transactions on blockchains are traceable, and U.S. agencies can and do sometimes seize stolen funds. However, recovery is not guaranteed, so report quickly with wallet addresses, dates, and all details to authorities.
No. The IRS never asks for cryptocurrency payments. If you receive such a request, it is a scam. Report it right away.
No, this is a job scam. These requests for crypto deposits to get paid are a red flag and should be ignored and reported.
Do not click links in these emails. Access your wallet or exchange directly and contact support within the app. MetaMask or exchanges never request your Secret Recovery Phrase by email or message.
They keep victims on the phone, create urgency, and send QR codes to 'secure' funds, often impersonating official staff. Adults 60+ are over three times more likely to fall victim to these scams.
No. Upfront-fee recovery services are almost always scams and could cost even more. Only report to government agencies like the FTC or FBI.
Enable passkeys or FIDO2 security keys, set up withdrawal allowlists, set security alerts, and use security holds or account locks if available. Avoid changes before making withdrawals.
Approval phishing is when scammers trick you into giving a contract permission to move coins from your wallet. Use Etherscan Token Approval tools to review and revoke risky permissions, and avoid granting unlimited access to any site.
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