Crypto scams to watch out for

As cryptocurrency gains mainstream traction, the scams that target it are becoming pervasive: Americans lost more than $9 billion to cryptocurrency scammers in 2024.¹ Understanding cryptocurrency’s appeal to scammers and their tactics can help you identify and prevent scams.

Cryptocurrency (“crypto”) is a digital asset known as “coins” or “tokens” used to store value and, in some cases, make payments. It’s typically bought or sold through crypto exchanges and stored in digital wallets, with transactions recorded on a blockchain.

Bitcoin, Ethereum and other cryptocurrency types aren’t considered legal tender in the United States and aren’t government-backed. Cryptocurrency’s value, which depends solely on current supply and demand, is extremely volatile.

Additionally, cryptocurrency payments are fast and typically irreversible, making them attractive to fraudsters.

Here are some of the biggest crypto scams to watch out for, but keep in mind scammers are continually adapting their tactics.

In impersonation scams, fraudsters pretend to be representatives of a trusted organization — such as a government agency, financial institution (including E*TRADE) or cryptocurrency exchange — claiming that your account is compromised, you owe a fine or tax debt, your identity has been used in a crime or your crypto exchange account is at risk of being frozen. Demanding payment in cryptocurrency for a verification deposit, security hold, urgent fee or safe transfer to protect your assets, they may direct you to a lookalike website or provide a QR code or wallet address.

Always independently confirm requests through the organization’s official phone number or website. Do not rely on links or numbers provided by the caller. And remember, no U.S. government agency demands payment in cryptocurrencies.

In some impersonation scams, the fraudster directs you to a Bitcoin ATM to convert cash into cryptocurrency and send it to their wallet. Demand from a legitimate organization to pay via a Bitcoin ATM is a red flag. In 2025 alone, Americans lost more than $333 million to crypto ATM scams.²

In a rug pull or pump-and-dump scheme, fraudsters promote a new or obscure crypto token to rapidly inflate the price. Promotion often relies on aggressive marketing and fabricated endorsements, positioning the token as the next big opportunity or claiming it’s backed by groundbreaking technology, a popular brand or a high-profile team.

Once enough investors buy in and the price rises, the scammers exit in a way that collapses the token’s value — for example, by “dumping” or selling their holdings into the surge or abruptly shutting down the project — leaving investors holding a token that’s effectively worthless.

Some scammers use friendly or romantic conversations to build trust over weeks or months before they introduce a cryptocurrency “opportunity” or request a crypto transfer because they supposedly need financial help. Sometimes they ask for a small initial transfer to appear legitimate before pressuring for larger amounts. This scam is widely known as “pig butchering” because of how scammers gradually “build up” trust and deposits before disappearing with the money.³

Don’t respond to unsolicited messages or click unknown links. Before engaging with anyone or any “opportunity,” verify legitimacy using credible sources and consumer protection sites.

Crypto investment scams often tout fast, extraordinary returns with little-to-no risk, sometimes using referral-style pitches that reward recruiting others into the investment program.

Fraudsters may also pose as investment managers promising to grow assets if funds are sent as cryptocurrency. Sometimes scammers attract interest with false endorsements, and drive speculation in chat rooms.

Cybercriminals may threaten to expose your sensitive information or private photos unless you send a cryptocurrency payment. Often, they don’t actually have the materials they claim to possess, but even if they do, paying may prompt further extortion. Always report extortion attempts to the FBI-run Internet Crime Complaint Center (IC3).

Phony websites may purport to be an investment opportunity, a digital currency exchange or digital wallet provider. It’s crucial to only deal with well-established organizations.

Fraudsters may also register misspellings such as “amozon.com” for “amazon.com” or variations of domain names like “securitycheck-paypal.com” for “paypal.com” for lookalike sites to trick you into providing your credentials or downloading malware. To avoid this typosquatting or URL hijacking, bookmark the trusted organization’s URL instead of relying on search results that may lead to phishing sites.

Fraudsters frequently exploit social media to promote fake crypto giveaways, claiming companies or celebrities will double any cryptocurrency you send to a posted address.

These giveaway scams are often limited-time offers to discourage you from pausing to verify their validity. Scammers may even leave comments from phony social media accounts claiming to have received money. Do not send cryptocurrency to addresses advertised in social media giveaways.

Fraudsters may pose as recruiters or hiring managers advertising fake job openings and business opportunities. They gather sensitive personal information under the guise of onboarding, and once they’ve established trust, they request a cryptocurrency payment to cover background checks, job training fees, equipment, software or “credentialing” to secure your start date.

Legitimate employers generally do not require cryptocurrency payments from new hires. If payment is requested, independently verify the recruiter and company using official channels such as the organization’s public website, and do not use contact information provided in the message itself.

If you’re targeted in a crypto scam or notice suspicious activity, report it immediately to:

• Federal Trade Commission
• Commodity Futures Trading Commission
• Securities and Exchange Commission
• Internet Crime Complaint Center (IC3), run by the FBI

One way to protect yourself or your loved ones’ accounts from financial scams is to add a trusted contact, a person you designate to be contacted if we’re unable to reach you or if there are concerns regarding your potential financial exploitation.

Article Footnotes

¹ Federal Bureau of Investigation, Internet Crime Report 2024, https://www.ic3.gov/AnnualReport/Reports/2024_IC3Report.pdf

² ABC News, Scammers notched $333 million from bitcoin ATM scams in 2025, FBI says, by Lucient Bruggeman, published Dec. 30, 2025, https://abcnews.go.com/US/scammers-notched-333-million-bitcoin-atm-scams-2025/story?id=128526877

³ FINRA, ‘Pig Butchering’ Scams: What They Are and How to Avoid Them, published Dec. 13, 2022, https://www.finra.org/investors/insights/pig-butchering-scams

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