Cryptocurrency scams are hard to undo because once crypto leaves your wallet, there is usually no bank or card company that can pull it back. Cryptocurrency (or "crypto") is digital money, such as Bitcoin, that moves directly between online wallets without a bank in the middle. That speed and lack of a middleman is exactly what fraudsters like. This guide explains, in plain English, the most common crypto scams, the warning signs, how to check an offer, and what to do if you have already paid. It is for members of the public, families, and very small business owners, whether or not you have ever bought crypto. For organisations, see the Crypto Scam and Drainer Guide.
Key takeaways
- Anyone who demands payment in crypto is a red flag. The US Federal Trade Commission (FTC) says real businesses and government bodies do not insist on it, especially upfront.
- Crypto payments are usually permanent. They lack the dispute rights you get with credit and debit cards, and getting money back usually depends on the person who received it choosing to return it.
- Most crypto is not regulated in the UK. The Financial Conduct Authority (FCA) says you should be prepared to lose all the money you put in, and the compensation scheme is highly unlikely to cover you.
- A new online friend offering crypto tips is a scam pattern. US regulators describe this as a relationship investment scam, sometimes called "pig butchering".
- Report quickly and record the details. Note wallet addresses, amounts, dates and the transaction ID, then contact your bank, the exchange and the police reporting service.
Why crypto is a favourite for scammers
Three features of crypto make it attractive to criminals, according to the FTC and the FCA:
- No undo button: payments are usually irreversible. There is no chargeback like you get on a card.
- Little protection: crypto accounts are not government insured. In the UK, the FCA says most crypto activity is not regulated, you generally cannot complain to the Financial Ombudsman Service, and the Financial Services Compensation Scheme (FSCS) is unlikely to protect you if a firm fails.
- Confusion: many people do not fully understand how crypto works, so a vague but technical explanation can sound convincing.
Even genuine crypto carries real risk. The FCA gives the example of crypto lender Celsius, which filed for bankruptcy in 2022 owing users $4.7 billion, with many unable to withdraw their funds. Scams sit on top of that risk.
The scale is large. The FBI's Internet Crime Complaint Center (IC3) 2024 report recorded 149,686 complaints involving cryptocurrency and more than $9.3 billion in related losses in the US, out of $16.6 billion in total reported losses.
The most common crypto scams
| Scam | What happens | The giveaway |
|---|---|---|
| Fake investment platform | An advert or "account manager" steers you to a professional-looking site that shows big profits. The FCA says the prices and returns can be faked. | You find out when you try to withdraw and cannot |
| Relationship investment ("pig butchering") | A new friend or romantic contact, often met through a "wrong number" text or dating app, slowly introduces crypto trading. The CFTC says these groups stole more than $3.5 billion in 2023. | Someone you have never met offers to teach you trading |
| Celebrity endorsement | Social media adverts use famous people's images to promote a scheme, according to the FCA, or a "celebrity" offers to multiply crypto you send. | Celebrities do not double your money |
| Impersonation | Someone posing as a bank, government agency, utility or tech company says your account is frozen or you owe money, and tells you to buy crypto to fix it. | No genuine organisation asks you to move money into crypto |
| Job scam | A "job" requires a crypto fee, or asks you to buy crypto for a "client". | Never pay to get a job |
| Fake coin or token | Fraudsters promote a "new" coin with ads, articles and websites, then disappear with buyers' money. | Hype, urgency and no clear explanation of the project |
| Blackmail | An email claims to have embarrassing material and demands crypto. | The FTC says do not pay; report it to the FBI or police |
| Recovery scam | After a loss, someone offers to get your crypto back for a fee. | The FCA and FBI both warn this is usually a second scam |
Romance and crypto scams often overlap. If a relationship is involved, see the Romance and Investment Scam Awareness Guide.
Warning signs
Stop and check if you see any of these, drawn from FTC, FCA and CFTC advice:
- Guaranteed or very high returns: promises of big profits, free money, or earnings that come quickly and easily.
- Unexpected contact: a message, call or advert out of the blue, especially with pressure to act today.
- Links and QR codes: requests to click a link or scan a QR code from a message you were not expecting. The FTC says this applies even when it seems to come from a company you know.
- Crypto only: a trading site that accepts only crypto, or a request to send crypto to a specific wallet address they give you.
- Vague explanations: nobody can clearly explain how the investment makes money.
- Locked account and fees: the CFTC describes fake platforms that let you withdraw a little at first, then lock the account and demand "fees", "taxes" or identity checks before you can withdraw. Paying never unlocks it.
- Freebies in adverts: the FCA says legitimate crypto promotions in the UK must show clear risk warnings and should not offer free gifts or refer-a-friend bonuses. If those warnings are missing and you are offered an incentive, the promotion may be illegal or a scam.
Check before you buy or invest
- Look the firm up yourself. In the UK, search the FCA Financial Services Register by firm name or firm reference number (FRN). Check its permissions and that the contact details match what you were given. If it is not listed, the FCA says avoid it. Type the FCA web address in directly, never through a link you were sent.
- Remember what registration means. The FCA says being on its register does not guarantee access to the compensation scheme or the Ombudsman for crypto.
- Be wary of "regulated" crypto products sold to you cold. The FCA says some products, such as crypto contracts for difference (CFDs, a bet on price moves), are regulated but should not be marketed to most consumers.
- In the US, the CFTC suggests checking registration at cftc.gov/check and looking up how long a trading website has existed using ICANN's domain lookup tool. A brand new site is a warning sign.
- Search for complaints. The FTC suggests searching the company or person's name with words like "scam" or "complaint".
- Talk to someone you trust before sending anything. A second opinion breaks the pressure scammers rely on.
- Only invest what you can afford to lose. This is the FCA's own warning for genuine crypto, not just scams.
If you do hold crypto, keep it safe: use strong unique passwords, turn on two-step verification on exchange accounts, and never share your wallet's recovery phrase (the list of words that can restore your wallet) with anyone. See the Crypto Wallet Security Guide.
What to do if you have been scammed
Move quickly. Each hour matters, especially while money is still passing through a bank or exchange.
- Stop sending anything, including "fees" to unlock your account.
- Call your bank if you paid from a bank account or card, for example to buy the crypto. In the UK, dial 159 to reach most banks safely. Ask them to stop or recall payments and flag the account.
- Contact the crypto exchange you used to send the funds, and report the receiving address. The FTC lists the exchange as one of the places to report.
- Write down the details. The FBI asks victims to record the wallet addresses, the amount and type of crypto, the date and time, and the transaction ID (also called the hash), plus how you met the scammer, their messages, and any websites or apps you were sent to. The FBI says to report even if you do not have all the details.
- Report it. In England, Wales and Northern Ireland, report to Report Fraud at reportfraud.police.uk or on 0300 123 2040. In Scotland, call Police Scotland on 101. If a firm claimed to be an investment business, report it to the FCA on 0800 111 6768 too. In the US, report to the FBI at ic3.gov, the FTC at ReportFraud.ftc.gov, and for trading scams the CFTC at cftc.gov/complaint.
- Secure your accounts. Change passwords, turn on two-step verification, and if you installed any app or gave anyone remote access to your computer, get the device checked.
- Ignore recovery offers. The FCA describes "recovery room" scams that cold call victims, claim to know about the loss, and ask for upfront tax or admin fees. Stop all contact.
Where to get help
| Where you are | Who to contact | For what |
|---|---|---|
| UK | Your bank via 159 | Stopping payments |
| England, Wales, NI | Report Fraud: reportfraud.police.uk, 0300 123 2040 | Reporting crypto fraud to the police |
| Scotland | Police Scotland: 101 | Reporting crypto fraud to the police |
| UK | FCA: 0800 111 6768, Firm Checker and Warning List | Checking and reporting firms |
| UK | NCSC: texts to 7726, emails to [email protected] | Reporting scam messages and adverts |
| UK | Citizens Advice | Free advice after a scam |
| US | FBI IC3: ic3.gov | Reporting crypto fraud |
| US | FTC: ReportFraud.ftc.gov; CFTC: cftc.gov/complaint | Reporting scams and trading fraud |
Common failure patterns
- Trusting the dashboard: a scam site can show any balance it likes. Profits on screen are not money you can withdraw.
- Paying to withdraw: "taxes", "fees" or "verification charges" to release funds are part of the scam.
- Following a link to check a firm: look-alike and clone sites copy real firms. Type addresses yourself.
- Moving money "for safety": no bank, police force or government body will ask you to convert savings into crypto.
- Sharing a recovery phrase: anyone with those words controls your wallet.
- Paying a recovery company: victims are often targeted twice.
Some crypto scams start with a phishing message or a fake website. The Phishing Guide explains how these tricks work.
Practitioner checklist
A simple checklist for you or a family member:
- I never pay anyone in crypto because they told me to, especially upfront.
- I ignore crypto offers that arrive out of the blue, by message, call or advert.
- I never take investment tips from someone I have only met online.
- I check firms on the FCA register (or cftc.gov/check in the US), typing the address myself.
- I only put in money I can afford to lose completely.
- I never share my wallet recovery phrase or let anyone remotely access my device.
- If something goes wrong, I call my bank on 159, note the transaction details, and report to Report Fraud (or 101 in Scotland).
- I ignore anyone offering to recover lost crypto for a fee.
Standards and references
- Financial Conduct Authority: Crypto investment scams
- Financial Conduct Authority: Crypto basics
- Financial Conduct Authority: Recovery room scams
- Report Fraud: Report cyber crime and fraud
- Federal Trade Commission: What to know about cryptocurrency and scams
- Commodity Futures Trading Commission: Relationship investment scams advisory
- FBI Internet Crime Complaint Center: Guidance for cryptocurrency scam victims
- FBI Internet Crime Complaint Center: 2024 Internet Crime Report
Related NHI Mgmt Group resources: Romance and Investment Scam Awareness Guide · Crypto Wallet Security Guide · Identity Theft Recovery Guide · Crypto Scam and Drainer Guide