Crypto Scams: How to Spot the Warning Signs Before You Send Money

What are the warning signs of a crypto scam?

A crypto scam can start with a friendly chat and end with a dashboard that looks real. So before you think about profits, look at the request. Who wants you to send money? Where would it go? How did you check who they are?

The US Federal Trade Commission (FTC) lists clear warning signs:

• Promises of profit. The FTC says that only scammers guarantee profits, because nobody can.
• Paying in crypto. No real business or government will demand that you pay with crypto.
• Fake helpers. Scammers pretend to be well-known companies, government agencies or celebrities.
• Love and money. If someone you met on a dating app wants to show you how to invest in crypto, the FTC says it's a scam.

One more rule: never let the sender give you both the claim and the proof. A link or phone number in their message can lead straight back to them. The same checks apply to trading bots that claim to use AI: see how to check AI trading claims.

Why do scammers ask for crypto?

Crypto payments are fast, they cross borders, and they usually can't be reversed. Australia's ASIC Moneysmart says scammers use crypto because payments are hard to recover. Once you send coins, no bank can pull them back.

That is why so many scams end with the same step: buy crypto and send it to this address. The story before that step changes. It might be a love interest, a celebrity giveaway, or a "government agency" that says you owe money. The FTC also warns about fake company staff who claim there is fraud on your account and tell you to buy crypto to fix it.

So treat any request to buy crypto and send it somewhere as a stop sign, whoever is asking.

How does a fake investment platform trick people?

Here is a made-up example. A person you met online suggests a platform called Example Coin Desk. You send a small amount, and the dashboard shows a gain. Later it shows $8,000. Then "customer service" says you must pay a $700 "verification tax" before you can withdraw.

What can you verify? Messages and a payment record show what was said and sent. The dashboard alone cannot prove that $8,000 exists, that trading happened or that a tax is due. An earlier small withdrawal does not verify the remaining balance.

The FBI calls demands for "taxes" or "fees" to unlock funds a trap: the scammers never release the money. Its advice is to stop sending money and to report the scam.

Then watch for the second trick. People who were scammed often hear from "recovery" services that promise to get the money back for a fee. The FBI says not to pay for these services.

How can I check if a crypto platform is real?

1. Write down the company's exact legal name, its website and where it says it is based. A brand name is not enough.
2. Go to your country's financial regulator yourself, not through a link someone sent you. Search for the company and the service it claims to offer.
3. Compare the website address and contact details carefully. Scammers copy the names of real, registered firms.
4. Read the custody, fee and withdrawal terms yourself, not a promoter's summary.
5. List everything you still don't know. A missing answer is not a good sign.

In Canada, start with the CSA's crypto platform pages. They link to a list of platforms allowed to do business with Canadians. In the UK, crypto firms must register with the FCA. In the US, the right regulator depends on the product. A real registration is a good start, but it is not a promise that your money is safe.

What should I do if I already sent money?

Act quickly, and stop sending money. Save the evidence somewhere private: transaction IDs, dates, amounts, wallet addresses, messages and website details.

Contact your bank, or the real platform, using contact details you found yourself. Then report the scam:

• US: the FBI's Internet Crime Complaint Center at ic3.gov, and the FTC at ReportFraud.ftc.gov.
• Canada: the Canadian Anti-Fraud Centre, your provincial securities regulator and your local police.
• UK: Report Fraud if you live in England, Wales or Northern Ireland. It replaced Action Fraud in December 2025. In Scotland, call the police on 101.
• Australia: Scamwatch, which also explains how to make a police report online.

A report helps, but it is not a promise that you will get the money back. To rehearse these checks without risking anything, try the crypto practice plan. Spotting a scam and walking away is a real skill.