Key takeaways

A stranger who contacts you out of the blue, steers you to a trading app or website, and shows you fast profits is running a scam until proven otherwise. Do not send more money, and never pay a “tax” or “fee” to withdraw.

  • According to the FBI’s 2025 Internet Crime Report, investment fraud cost Americans about $8.6 billion, and $7.2 billion of that was cryptocurrency investment fraud.
  • The profits on a fake platform are numbers on a screen. Real money only goes one way.
  • A request for a fee or tax before you can withdraw is the final step of the scam, not a legitimate hurdle.
  • If you have already sent money, stop, keep records, and read the section on what to do next.

If an app or website is named in your messages, check whether it has a risk report in the scam directory.

How the scam works, stage by stage

These scams follow a pattern. Knowing the stages makes it easier to see which one you are in.

Stage 1, contact. A message arrives by text, social media, a dating app, or an ad. It may say “Sorry, wrong number” or simply say hello. Within days the chat moves to a private messaging app.

Stage 2, trust. The contact is friendly, shares photos, and talks about daily life. Sometimes the relationship turns romantic, which is covered in the romance scams guide. Eventually they mention an investment that is working for them.

Stage 3, the platform. You are sent to a website or app. You buy crypto at a real exchange and then send it to an address the platform gives you. The dashboard shows your balance growing.

Stage 4, escalation. You deposit more. You may see a small successful withdrawal. The scammer or an “analyst” urges bigger sums, and may offer a loan to cover them.

Stage 5, the trap. When you ask to cash out, the account is frozen. You are told to pay a tax, a fee, or to prove your wallet is real. Then the site goes quiet or the account is closed. After that, some victims are contacted by fake recovery services, covered in the recovery scams guide.

Ten warning signs of a crypto investment scam

These signs often appear together. One alone is a reason to slow down. Two or three mean you should stop and verify before you move any more money.

  1. Contact from a stranger who steers the chat elsewhere. The first message may look like a wrong number, a friendly hello on social media, or a dating match. The FBI says scammers typically start through text messages, social media, advertisements, or dating apps and then quickly move the conversation to a messaging platform. A person who wants to talk about investing within days of meeting you is selling something.
  2. A mentor who is always “just about to” teach you. The scammer says a relative, a professor, or an analyst taught them a trading method. They offer to guide you for free. Real advisers do not recruit strangers by chat, and they do not offer a private tip that beats the market.
  3. An app or site you cannot find in the official app stores. You are told to download an app from a link, or to sign in at a website with a slightly odd address. Search the platform name plus “scam” and “review”, and look for a regulator listing. A slick dashboard costs a criminal very little to build.
  4. Profits that appear quickly and look too good. Your first small deposit grows fast, and you may be allowed to withdraw a little. That is bait. The gains are numbers the operator controls, and the small withdrawal is there to earn your trust before the larger deposits.
  5. Guaranteed returns or “no risk” language. Every real investment can lose money. A promise of guaranteed returns, daily percentage gains, or a “can’t lose” strategy is a classic sign of fraud, whatever the asset is.
  6. Pressure to invest more, or to borrow to do it. The FBI describes victims being shown fake profits and offered loans to encourage larger investments. The same report describes victims who were stopped from cashing out a 401(k), selling a house, or taking out a loan to send more. If someone urges you to raise cash, treat that as the clearest signal to stop.
  7. Payment only in cryptocurrency, gift cards, or wires to new accounts. You are asked to buy crypto at an exchange and send it to a wallet address the “platform” gives you. Once sent, crypto is very hard to pull back. A real broker or exchange does not need you to move money through a chat.
  8. A “VIP” group, club, or insider chat. Investment groups on messaging apps may show other members posting big wins. Many of those members are scripted accounts. The FBI notes victims are often introduced to groups presenting themselves as industry insiders offering guidance on trading crypto or gold.
  9. No license, or a license number that does not check out. In the United States, check a seller on Investor.gov, FINRA BrokerCheck, or your state securities regulator. In the UK, use the FCA Register and warning list. In Australia, search ASIC’s registers. Scammers also clone real firms, so confirm the contact details with the regulator, not with the website.
  10. Taxes, fees, or “verification deposits” to withdraw. When you try to take money out, the platform says you owe a tax, a fee, or a deposit to unlock your balance. The FBI says victims are charged taxes and fees as a final attempt to take money before the scammers disappear with all of it. Paying never releases the balance.

What the numbers show

The FBI’s Internet Crime Complaint Center (IC3) said in its 2025 Internet Crime Report that total reported losses passed $20 billion. Investment fraud was the largest category at $8,648,617,756 across 72,984 complaints. The FBI said cryptocurrency investment fraud was the highest source of financial losses to Americans in 2025, at $7.2 billion.

The FTC counts differently, and its figures cannot be added to the FBI’s. The FTC told Congress in March 2026 that consumers reported $15.9 billion in fraud losses in 2025, with investment scams the largest category at $7.9 billion. Both agencies say real losses are higher, because many people never report.

There is also some hopeful news. The FBI said its Operation Level Up notified 3,780 victims of crypto investment fraud in 2025, and that 78 percent of them did not know they were being scammed. A call from the FBI or Secret Service telling you that you are a victim is real news. Still, check it by looking up the agency’s number yourself.

If you already paid or are still deposited

Stop sending money. Do not pay the “tax” or “fee” in the hope of getting your balance out. Keep every record: wallet addresses, transaction IDs, screenshots, app names, chat logs, and the website address.

Contact your bank, card company, or the crypto exchange you used, using a number from its official app or website. Tell them you were scammed and ask whether a freeze or reversal is possible. Then report to the FBI at ic3.gov and the FTC at ReportFraud.ftc.gov. Include the wallet addresses; that is what investigators trace.

Be wary of anyone who then contacts you offering to get the money back. The recovery scams guide explains why, and the urgent payment guide covers how to slow down any payment demand. If you borrowed money or used retirement funds, talk to a trusted family member or a nonprofit credit counselor. Shame keeps people quiet, and these operations are professional.

Official sources

Scambaba is an independent educational project. Reporting and recovery options depend on where you live. How these guides are researched is on the editorial policy.

Frequently asked questions

Can I get my money back from a crypto scam?

Sometimes, but it is uncommon. Speed matters most. Report to your bank or exchange and to the FBI’s IC3 right away, because freezes work best in the first hours or days. After that, recovery is hard. Anyone who guarantees to get the money back for a fee is likely running a second scam.

What is pig butchering?

It is a long-running scam in which criminals build trust over weeks, then “fatten” the victim with fake investment gains before taking everything. The FBI describes these as sophisticated, long-term scams largely run by organized groups based in Southeast Asia, often using trafficked people as forced labor.

How do I know if a crypto trading app is fake?

Look for signs such as a stranger sending you the link, an app that is not in the official store, no listing with a financial regulator, guaranteed returns, and fees to withdraw. Search the exact name with “scam” and check the regulator’s website yourself.

Is it a scam if I was able to withdraw a little money?

It still can be. Small early withdrawals are a known tactic to build confidence before you deposit more. What matters is how you met the platform, who is pushing you, and whether it is registered with a regulator.

Why would I have to pay a fee to withdraw my own money?

On a genuine platform, fees come out of your balance and are shown in advance. On a fake one, a demand for a separate payment, often a “tax” or “verification deposit”, is a cash-out tactic. Do not pay it.

Who do I report a crypto investment scam to?

In the US, report to the FBI at ic3.gov, to the FTC at ReportFraud.ftc.gov, and to the exchange or bank you used. In the UK, report to Action Fraud and the FCA. In Australia, report to Scamwatch. Also tell your state securities regulator if one is involved.