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Catalysts Creative Crypto

Common Crypto Scams: How They Work and How to Spot Them

Crypto scams don't usually rely on clever technology. They rely on old tricks (trust, fear, urgency and the promise of easy money) combined with a payment method that's hard to reverse. Once crypto is sent, there's usually no bank to call and no chargeback to file.

The scale is large. In the FBI's 2025 Internet Crime Report, people filed 181,565 complaints involving cryptocurrency, reporting about $11.4 billion in losses, and cryptocurrency investment fraud alone accounted for about $7.2 billion, the largest single loss category in the report (FBI IC3, 2025 Annual Report). Those are only the losses people reported.

Below are the patterns that come up again and again, how each one usually unfolds, and what to do.

The one rule that stops most of them

The FTC sums it up: "Only scammers demand payment in cryptocurrency." No legitimate business or government agency will require you to pay in crypto to buy something, settle a bill, pay a fine or "protect" your money (FTC). The FTC adds two more: only scammers guarantee profits, and you should never mix online dating with investment advice (FTC).

1. Relationship investment scams ("pig butchering")

This is the costliest pattern in the FBI's data. The FBI describes these as long-term scams, largely run by organized criminal groups, that use "psychological manipulation" and "the appearance of legitimacy" (FBI IC3).

How it usually unfolds: 1. A "wrong number" text, a dating-app match or a friendly social media contact. 2. Days or weeks of normal conversation that builds trust. 3. The conversation moves to a private messaging app. 4. They mention their own success trading crypto (or gold) and offer to show you how, on a specific platform. 5. The platform shows fake profits. You're encouraged to add more, sometimes offered a "loan." 6. When you try to withdraw, you're told to pay taxes or fees first. The money is never released.

The CFTC warns about this same sequence and advises never to invest with someone you've only met online (CFTC).

Red flags: someone you haven't met in person brings up investing; they steer you to a specific app or website; your "account" grows suspiciously steadily; withdrawals require a payment first.

2. Fake customer support and phishing

You post a question about a stuck transaction, and a "support agent" messages you within minutes. Or you get an email or text saying your account is locked. The link leads to a convincing copy of the real site. Whatever you enter (password, two-factor code, recovery phrase) goes to the scammer.

Red flags: support that contacts you first; links in messages; requests for your recovery phrase, two-factor codes or remote access to your computer.

What to do: go in the front door. Type the company's address yourself or use the app you already installed, and find support contacts from the official site. Never type a recovery phrase into a website. No real support team needs it.

3. Impersonation and Bitcoin ATM scams

A caller claims to be from your bank, a government agency, a tech company or even law enforcement. They say your money is at risk, or that you're in trouble, and the fix is to withdraw cash and deposit it into a cryptocurrency ATM, or to scan a QR code they send.

The FTC is blunt about this: "'Go to a Bitcoin ATM' is a scam. Nobody legit will ever insist you get cryptocurrency of any kind." It also lists other phrases only scammers use, such as "Act now!", "Don't hang up" and "Move your money to protect it" (FTC).

What to do: hang up. Contact the organization using a phone number or website you already know is real, not one the caller gives you. The FTC also describes utility "shut-off" scams that demand Bitcoin; real utilities don't do that (FTC).

4. Fake giveaways and celebrity "doubling" offers

A video or post shows a famous person promising to send back double whatever crypto you send to an address or QR code. The account may be hacked, the video may be edited or AI-generated, and the comments are full of fake "it worked!" replies.

The FTC notes that scammers pretend to be celebrities who can multiply your crypto, and that "free money promises are always fake" (FTC).

Red flag: any offer to send crypto to you in exchange for sending crypto first.

5. Guaranteed-return "investment" platforms and groups

Some scams skip the romance and go straight to the pitch: an "investment manager," a trading group on a messaging app, or a slick site promising daily returns with "zero risk." The FBI's report also describes fraud through investment clubs reached on social media and messaging apps (FBI IC3).

The FTC's rule applies: only scammers guarantee profits or big returns. Testimonials and celebrity endorsements are easy to fake (FTC).

What to check: look up who runs the platform. In the U.S., you can search FinCEN's MSB registry (msb.fincen.gov), though FinCEN notes a listing isn't an endorsement. Our guide to buying crypto safely for the first time walks through these checks.

6. Job scams that pay in, or ask for, crypto

An online "job" asks you to pay an upfront fee, buy equipment, or buy crypto to get started. The FTC says that if someone asks you to pay upfront for a job, or to buy crypto to get a job, it's a scam (FTC).

7. Recovery scams: the second hit

After someone loses money, they're often contacted by "recovery experts," "blockchain investigators" or fake law firms that promise to get the money back for an upfront fee. The FBI notes that crypto investment fraud victims are also targeted in recovery scams (FBI IC3).

Red flags: they found you (not the other way around); they claim special access to "trace and freeze" funds; they want payment before doing anything, often in crypto.

Read more: crypto recovery scams.

A 30-second checklist before you send crypto to anyone

A "yes" to any of these is a reason to stop and check with someone you trust.

What to do if you've been scammed

  1. Stop sending money, even if you're told one more payment will unlock everything.
  2. Save everything: messages, usernames, website addresses, wallet addresses and transaction IDs.
  3. Report it to the FBI at ic3.gov and the FTC at ReportFraud.ftc.gov. If an exchange was involved, contact it through its official support page.
  4. Secure your accounts: change passwords and switch to stronger two-factor login.
  5. Ignore recovery offers that ask for a fee.
  6. Talk to someone. These scams are designed to cause shame and isolation. Telling a trusted person helps, and it can protect them too.

Learn the patterns before you need them

Our 5-Day Crypto Safety Starter covers fake support, relationship scams and recovery scams in a free 5-day safety course (opening soon). In the full Catalysts Creative Crypto course, Module 6: Security and scam avoidance goes deeper and is included in every tier. See the curriculum.

FAQ

What is the most common crypto scam?

In the FBI's 2025 Internet Crime Report, cryptocurrency investment fraud, including relationship-based "pig butchering" scams, caused the largest reported losses, about $7.2 billion. Impersonation and fake-support scams are also very common.

Can I get my crypto back after a scam?

Sometimes law enforcement or an exchange can freeze funds, but recovery is uncommon because crypto transfers are hard to reverse. Report quickly to ic3.gov and ReportFraud.ftc.gov, and avoid anyone who charges a fee to recover your money.

Is a Bitcoin ATM request always a scam?

If someone tells you to go to a Bitcoin ATM to pay a bill, fix an account problem or protect your money, yes. The FTC says no legitimate business or agency will insist you use one.

How can I tell a real support agent from a fake one?

Real support teams don't message you first on social media or ask for your recovery phrase. Contact support only through the company's official website or app.

Are crypto giveaways from celebrities real?

Offers to send back more crypto than you send are scams. The FTC warns that scammers impersonate celebrities and that free money promises are always fake.

Sources

Education only, not financial advice. Crypto is volatile and you can lose money.