How to Spot a Crypto Scam: Red Flags & What to Do (2026)

Last reviewed: September 30, 2026

Crypto fraud is now one of the costliest kinds of financial crime reported to US authorities. In its 2025 Internet Crime Report, the FBI's Internet Crime Complaint Center (IC3) said complaints involving cryptocurrency made up the largest losses of any category, with 181,565 complaints and more than $11 billion reported lost. Losses through crypto ATMs and kiosks alone passed $388 million in 2025, according to an FBI public service announcement from May 2026. Behind those figures are ordinary people: retirees who were told their bank account was compromised, workers who took an online "task" job, and savers who met a friendly stranger online who seemed to know a lot about trading.

This guide expands our earlier list of 12 red flags into a full reference. It explains how the main schemes work, how criminals now use deepfakes and AI, why crypto ATMs have become a favourite tool, how states such as Minnesota have responded, how to check whether a platform is registered, and exactly what to do if money has already gone. We rely on official sources throughout.

This article is general information, not legal or financial advice.

Why crypto scams are different from other fraud

Crypto changed the speed, reach and finality of payments, which makes it attractive to criminals.

Payments are hard or impossible to reverse

When you pay by credit card, you usually have a legal right to dispute a charge. Bank transfers can sometimes be recalled if you act quickly. Crypto is different. The FTC warns that crypto payments typically do not come with legal protections and are usually not reversible. Once coins move from your wallet to a scammer's wallet, the only way to get them back is for the scammer to send them back, or for law enforcement or an exchange to freeze them before they are moved on. If you want to understand how card protections compare, our guide on how to dispute a credit card charge in the US and UK explains the chargeback process.

The 12 red flags of a crypto scam

These twelve warning signs cover the great majority of crypto scams reported to regulators. One red flag is a reason to stop and check. Two or more together should be treated as near-certain proof of fraud.

1. Guaranteed or unusually high returns

No legitimate investment can promise a fixed profit with no risk, especially in a market as volatile as crypto. The FTC says that only scammers promise you will make money or guarantee big returns. The SEC and CFTC give the same warning. Watch for phrases such as "risk-free", "guaranteed 2% a day", "double your bitcoin" or "our AI never loses". Even modest-sounding promises, such as a steady 10% a month, are a warning sign if they are presented as certain.

2. Pressure to act immediately

Urgency is the scammer's best tool because it stops you from thinking and from asking anyone else. You may hear that "the window closes tonight", that "only five spots remain", that your bank account "will be frozen in one hour" or that a family member is "in jail and needs bail now". Real opportunities and real emergencies can survive a one-hour pause while you check the facts independently.

3. Requests for your seed phrase, private key or remote access

Your seed phrase (also called a recovery phrase) is the master key to your wallet. Anyone who has it can take everything. No real exchange, wallet company, government agency or support team will ever ask for it. The same applies to requests to install screen-sharing or remote-access software so someone can "help" you set up an account or "fix" a problem. With remote access, a scammer can see your screen, read your codes and move your money. Our guide to hot wallets vs cold wallets and seed phrase safety explains why this secret matters so much.

4. Unsolicited contact

Many scams start with a message you did not ask for: a "wrong number" text, a friend request, a dating-app match who quickly wants to move the conversation to WhatsApp or Telegram, a LinkedIn recruiter or a call claiming to be from your bank. The IC3 notes that kiosk scam victims often receive unsolicited contact through email, social media or phone. Unsolicited contact is not proof of fraud on its own, but when a stranger steers the conversation toward money or crypto, take it seriously.

5. You must pay a fee or "tax" before you can withdraw

This is one of the most reliable signs that a platform is fake. You see a large balance on your dashboard, but when you try to withdraw, you are told to pay a "tax", "unlock fee", "anti-money-laundering deposit", "verification fee" or "account upgrade" first. After you pay, a new fee appears. Legitimate platforms deduct fees from your balance; they do not demand fresh deposits to release money that is supposedly yours. The balance you see is almost certainly just a number on a screen controlled by the scammer.

6. Celebrity or company "giveaways"

"Send 0.1 BTC and receive 0.2 BTC back" is always a scam, whether the post appears to come from a famous founder, a sports star or an exchange's official account. Scammers use hacked verified accounts, fake live streams and deepfake video to make these giveaways look real. The FTC is clear that anyone who says they will give you crypto if you send them crypto first is a scammer.

7. Look-alike websites and apps

Scammers register domains that differ from the real one by a single letter, add words such as "-support" or "-app", or buy search ads that appear above the genuine result. Fake apps sometimes appear in app stores before they are removed, and others are distributed through direct download links sent in chats. Always type the web address yourself or use a bookmark you created, and download apps only from the official store after checking the developer name.

8. Anonymous or unverifiable teams

A project whose founders use cartoon avatars, whose "team page" uses stock photos, or whose company address leads to a virtual office gives you no one to hold accountable. Combined with big promises, it is a serious warning sign.

9. Recruitment bonuses and referral pyramids

If the main way to earn is by bringing in new members, and returns depend on new money coming in, you are likely looking at a pyramid or Ponzi scheme. Look for multi-level "packages", ranks, team bonuses and pressure to sign up friends and family. The SEC has repeatedly warned about crypto schemes that pay earlier investors with money from later ones.

10. Payment only in crypto, gift cards or wire transfers

Scammers prefer payment methods that are fast and hard to reverse. The FTC says no legitimate business or government agency will demand payment in cryptocurrency, gift cards or by wire transfer. If someone tells you to withdraw cash and feed it into a crypto ATM, or to buy gift cards and read out the numbers, stop. That instruction alone is enough to identify a scam.

11. Offers to recover lost crypto

After people lose money, they are often targeted again by "recovery" services, fake lawyers or even fake government officials who promise to trace and return stolen funds for an upfront fee. The FBI and FTC warn that these are almost always a second scam. We cover this in detail in the recovery scams section.

12. An online friend or mentor coaching you to trade

A person you have met only online, who seems kind, successful and patient, starts sharing trading tips, shows you screenshots of profits and offers to guide you through opening an account on a particular platform. They may encourage you to start small and let you withdraw a little at first to build trust. This is the core pattern of "pig butchering" and relationship investment scams. The FBI advises never to send money, trade or invest based on advice from someone you have met only online.

Common crypto scam types compared

Most crypto fraud falls into a handful of families. Knowing the shape of each one makes it easier to recognise a new variation.

The sections below explain the most damaging of these schemes in more depth.

Pig butchering, romance and "friend" investment scams

"Pig butchering" is a translation of a term used by the criminals themselves. The idea is to "fatten up" the victim with trust and small wins before taking as much as possible. US regulators increasingly use the more neutral terms relationship investment scam or cryptocurrency investment fraud. The CFTC has published a detailed advisory on these schemes, and the FBI has run a dedicated effort, Operation Level Up, to identify and warn victims. The FBI says that effort has helped prevent more than $500 million in potential losses since 2024.

How the scam unfolds

1. First contact. A "wrong number" text, dating-app match or social media message turns into friendly chat.
2. Trust. Over weeks, the contact becomes a friend or romantic interest with an attractive lifestyle.
3. The hint. They mention making money trading crypto and wait for you to ask how.
4. The platform. They guide you to a professional-looking site or app, often after you buy crypto on a real exchange.
5. Small wins. Your balance grows fast, and a small early withdrawal may be allowed.
6. Bigger deposits. You are pushed to invest more, borrow or tap retirement savings.
7. The trap closes. Withdrawals trigger fees, taxes or "freezes" until the platform and the friend vanish.

Romance scams that end in crypto

Traditional romance scams follow a similar arc but usually ask for money directly: for a medical emergency, a customs fee, a plane ticket to finally meet, or to help with a business problem. Increasingly, the request is to send crypto or use a crypto ATM. The FTC advises that anyone who says they love you but asks for money, especially in crypto or gift cards, is a scammer, and that you should talk to a friend or relative before sending anything.

Impersonation scams, deepfakes and AI

Impersonation is the fastest-growing route into crypto fraud for many older victims. The criminal pretends to be someone you trust: a government agency, your bank, a well-known tech company, the fraud department of an exchange, or a family member.

Government and law enforcement impersonation

A caller claims to be from the IRS, the Social Security Administration, the FBI, the police, a court or a customs agency. You are told you owe a fine, that your identity has been used in a crime, or that there is a warrant for your arrest. To avoid arrest or "protect" your savings, you must withdraw cash and deposit it at a crypto ATM, scanning a QR code they send you.

The IC3 advises being suspicious of anyone claiming that only cryptocurrency payment is acceptable, especially those posing as government or law enforcement. The FTC is blunt: the government will never ask you to pay with crypto or to move money to protect it.

Bank and "fraud department" impersonation

In a related pattern, which the FTC described in an August 2025 data spotlight on older adults, the victim receives a text or call about suspicious activity on their account. A "fraud specialist" then says the account is compromised and the only safe option is to move the money: into crypto, onto gold bars, or to a "safe account". The FTC reported a sharp rise in older adults reporting losses of tens or even hundreds of thousands of dollars to these scams. Your real bank will never ask you to move money to protect it.

Tech support and fake exchange support

A pop-up claims your computer is infected, or a search ad leads to a fake "exchange support" number. The agent asks you to install remote-access software or "verify" your wallet with your seed phrase. Real crypto companies do not cold call and never ask for your seed phrase; reach support only through the official app or a website address you typed yourself.

Deepfakes and AI voice cloning

Generative AI has made impersonation easier and more convincing. The FBI has warned that criminals use AI to create realistic text, images, audio and video, including voice clips of loved ones in crisis and video of public figures endorsing investment schemes. In practice, this means:

• Cloned voices of family members. A short clip from social media can be enough to imitate a voice asking for urgent help.
• Deepfake celebrity videos. Fake interviews or live streams show a famous investor or founder promoting a platform or giveaway.
• Perfect grammar. The old advice to look for spelling mistakes is less useful now; AI writes fluent messages in any language.

The FBI recommends creating a secret word or phrase with family members to confirm identity in an emergency, limiting the voice and image content you post publicly, and hanging up and calling back on a number you know. Treat any video or audio that asks for money with the same scepticism as a text message.

Crypto ATM and kiosk scams

Crypto ATMs, also called bitcoin ATMs or virtual currency kiosks, are machines in convenience stores, gas stations and shopping centres that let you convert cash (and sometimes debit card payments) into crypto. They have legitimate uses, but they have become a major channel for scams because they turn a victim's cash into crypto sent directly to a criminal's wallet in minutes.

How kiosk scams work

The IC3 describes a typical pattern. The criminal gives the victim detailed instructions: how to withdraw cash from the bank, how to find a nearby kiosk, and how to deposit the cash and send it. The criminal usually provides a QR code containing their wallet address. When the victim scans it at the kiosk and inserts cash, the crypto goes straight to the scammer. The FTC notes that reports of losses at crypto ATMs are overwhelmingly about government impersonation, business impersonation and tech support scams.

Victims are often kept on the phone throughout. They may be told to spread deposits across several machines or several days to stay under limits, to ignore warning screens, and to tell store staff or bank tellers nothing. Minnesota's Commerce Department told lawmakers in 2026 that scammers routinely coach victims to make multiple smaller deposits and to bypass warnings.

How big the problem has become

Official data show steady growth:

• The FTC reported in September 2024 that losses to fraud using bitcoin ATMs topped $65 million in just the first half of 2024, with a median reported loss of $10,000. People aged 60 and over were more than three times as likely as younger adults to report a loss using these machines, and accounted for about 71% of the dollars lost.
• The FBI's IC3 recorded 10,956 complaints involving crypto kiosks in 2024, with about $246.7 million in losses, according to the 2024 Internet Crime Report and a later FinCEN notice.
• For 2025, the IC3 reported more than 13,400 kiosk complaints and losses of over $388 million, a 23% increase in complaints and a 58% increase in losses. More than half of those complaints came from people over 50, who reported more than $302 million in losses.

Warning signs specific to crypto ATMs

• Anyone tells you to withdraw cash and take it to a crypto ATM.
• You are given a QR code to scan at the machine.
• The kiosk shows a fraud warning screen and the caller tells you to ignore it.

If any of these happen, stop. Hang up. Call a family member, your bank on the number on your card, or local police on a non-emergency line. The IC3 advises never following instructions from strangers to use a crypto kiosk and never sending payments to people you have only met online.

How regulators are responding to kiosk scams

Because kiosk fraud is so heavily concentrated among older adults and so hard to reverse, regulators at every level have stepped in. The approaches vary, from warning notices to transaction caps to outright bans.

Federal warnings and guidance

• FTC. The FTC's 2024 data spotlight called bitcoin ATMs "a payment portal for scammers" and published consumer advice making clear that no legitimate business or government agency will ask you to use one.
• FBI and IC3. The IC3 has issued public service announcements on crypto kiosk fraud, including a May 2026 announcement with kiosk complaint data broken down by state.
• FinCEN. On August 4, 2025, the Treasury Department's Financial Crimes Enforcement Network issued a notice to financial institutions about illicit activity involving convertible virtual currency kiosks, including scams against older adults. It gave red flags for banks to watch, such as older customers suddenly withdrawing large amounts of cash with no clear explanation, and asked institutions to use a specific key term when filing suspicious activity reports.

State kiosk laws

Most direct regulation of crypto kiosks happens at the state level, through money transmitter licensing and specific kiosk statutes. Common measures include:

California, for example, has capped daily kiosk transactions per customer under its digital financial assets law, and a number of other states have passed laws combining warnings, limits and refund rules. Some cities have gone further and banned kiosks locally. State attorneys general have also used consumer protection laws: in 2025 the Iowa Attorney General sued the state's two largest kiosk operators, alleging that hundreds of Iowans, mostly over 60, sent more than $20 million to scammers through their machines and that the companies charged excessive, often hidden, fees. Those are allegations, not court findings. Rules differ widely and change often, so check your own state's financial regulator for current requirements.

Case study: Minnesota's crypto kiosk ban

Minnesota offers a clear example of how a state moved from regulating kiosks to banning them outright, and why.

The 2024 kiosk law

In 2024, Minnesota passed a law aimed specifically at virtual currency kiosks. According to the Minnesota House's nonpartisan Session Daily coverage, it required operators to display warning disclosures, limited deposits by new customers to $2,000, and required refunds to fraud victims in some cases involving new customers. At the time, it was one of the more detailed kiosk laws in the country.

Why lawmakers said the 2024 law was not enough

By early 2026, law enforcement and the state Commerce Department told legislators that scammers were working around the protections. Victims were instructed to make multiple small deposits, to click through warnings and to avoid triggering new-customer rules. A Commerce Department official told a House committee that previous efforts to increase consumer protections for crypto kiosks had failed. At that time, the state had about 350 licensed kiosks operated by eight to ten companies.

Police officers described cases in which older Minnesotans lost tens of thousands of dollars. A Woodbury detective described a senior who had been giving half of her monthly income to scammers over months and feared she would have to live in her car. A St. Cloud officer described a 78-year-old woman who lost $80,000 in a scam tied directly to a crypto kiosk.

HF3642: the committee hearing

House File 3642, sponsored by Rep. Erin Koegel (DFL-Spring Lake Park), proposed banning virtual currency kiosks statewide. It was heard in the House Commerce Finance and Policy Committee on February 26, 2026, and laid over for possible later action while lawmakers worked on revised language. The bill would require all kiosks to be removed from the state by the end of the year and require operators that do business only through kiosks to pay out any crypto held for customers. Koegel noted that residents would still be able to buy and sell crypto online.

Kiosk operators opposed the bill. A lawyer for one operator argued that it is inappropriate to ban a legal product because fraud is happening, and operators pointed to their own compliance measures.

From bill to law

Our earlier news coverage described the bill's status as of that committee hearing. It has since moved on. The kiosk ban language was included in the House commerce omnibus bill (HF4188), which the committee approved on March 25, 2026. The Senate companion, SF3868, sponsored by Sen. Amanda Hemmingsen-Jaeger (DFL-Woodbury), passed the Senate on April 9, 2026 by 57-10 and the House on April 27, 2026 by 127-7, and was signed by the governor on May 5, 2026 as 2026 Minnesota Session Laws Chapter 65. HF3642 itself was indefinitely postponed after the Senate file was substituted, which is a normal procedural step.

According to the Minnesota House's New Laws summary:

• The prohibition on virtual currency kiosks takes effect August 1, 2026.
• Operators must remove publicly accessible kiosks and settle customer accounts by December 31, 2026.
• Operators that transact only through kiosks must pay out customer holdings, either in US dollars equal to the market value of the customer's crypto (plus any fiat balance) or to a crypto wallet the customer designates.
• If a customer chooses a wallet transfer, the operator has 30 days to complete it and must keep blockchain proof.

What Minnesota's approach means for everyone else

Minnesota moved from warnings and caps to a ban after finding that scammers adapted to each safeguard. The lesson for consumers anywhere is that a warning screen or daily limit will not protect you while a scammer is guiding you on the phone. Any request to put cash into a crypto machine for someone else is a scam. Minnesotans with funds held by a kiosk operator should follow the operator's payout instructions before December 31, 2026, and can contact the Minnesota Department of Commerce with questions.

Wallet attacks: phishing, drainer approvals and address poisoning

Some crypto scams do not rely on persuading you to send money. Instead, they trick you into giving an attacker the ability to take it. These attacks are common among people who use self-custody wallets and decentralised apps.

Phishing for logins and seed phrases

Phishing messages pretend to come from your exchange, wallet provider or a well-known service. They warn about a security problem, a pending withdrawal, a required "wallet sync" or an airdrop you can claim. The link leads to a convincing copy of the real site, where you enter your login, one-time code or seed phrase. The attacker uses it immediately. Protect yourself by never clicking login links in messages, using a password manager (which will not fill your password on a fake domain), and turning on phishing-resistant sign-in such as passkeys or a hardware security key where your exchange supports them.

Malicious approvals and wallet drainers

On networks such as Ethereum, you often sign an "approval" that lets a smart contract spend certain tokens from your wallet. This is normal when using a legitimate exchange app. Attackers abuse it by creating fake airdrop sites, fake NFT mints or copies of real apps. When you connect your wallet and click "claim" or "mint", you actually sign an approval (sometimes for an unlimited amount) or a signature that allows the attacker's contract to move your tokens. Criminal "drainer kits" automate this and are sold to other scammers.

To reduce the risk:

• Only connect your wallet to sites you reached by typing the address or from the project's verified official channels.
• Read what your wallet asks you to sign. Be wary of "setApprovalForAll", unlimited allowances or signatures you do not understand.
• Use a separate "burner" wallet with small balances for new apps, airdrops and mints, and keep savings in a different wallet, ideally a hardware wallet.
• Review and revoke old token approvals periodically using your wallet's built-in tools or a reputable approval checker.

Address poisoning

Crypto addresses are long strings of characters, so many people only check the first and last few. Address poisoning exploits this. The attacker generates an address that begins and ends with the same characters as one you often use, then sends a tiny or zero-value transaction to your wallet from it. That fake address now appears in your transaction history. Next time you copy an address from your history instead of from the original source, you may copy the attacker's address and send your funds to them.

Defences are simple but require discipline: save trusted addresses in your wallet's address book, never copy addresses from transaction history, check the full address (or at least many characters in the middle as well as the ends), and send a small test transaction before large transfers. On a hardware wallet, always confirm the full address on the device screen.

Fake exchanges, fake apps and "trading bots"

A fake platform is at the heart of most investment scams. It may be a website, a mobile app or a web page wrapped to look like an app. It shows balances, charts, order books and customer chat, but the numbers are controlled entirely by the criminals. No trading actually happens.

How to recognise a fake exchange or app

• You were introduced to it by someone you met online, not by your own research.
• It is not available in major app stores, or you are asked to install it through a direct link, a "configuration profile" or a test-flight style invitation.
• The domain was registered recently, and the company cannot be found on any regulator's register.
• Deposits must be made by sending crypto to an address given by "customer service" rather than generated by the platform itself.
• Returns are unusually smooth and always positive.
• Withdrawals are delayed, blocked or require extra payments.
• Customer service is only available through chat apps and pushes you to deposit more.

Trading bots and AI trading promises

Automated trading tools do exist, and some people use them on legitimate exchanges. But "AI trading bots" are also a favourite story for scammers. The CFTC has warned that claims of AI-powered trading with guaranteed returns are a hallmark of fraud. A real tool cannot guarantee profits, and a legitimate bot usually connects to your own exchange account through a limited API key rather than asking you to send funds to its operator. If you are exploring this area, read our overview of crypto trading bots and apply the same checks: who runs it, where is it registered, and who holds your money?

Rug pulls, pump-and-dumps, Ponzi schemes and fake mining

Not all crypto scams involve direct contact. Some are built into tokens and projects that are promoted to the public.

Rug pulls

In a rug pull, developers launch a new token or decentralised finance project, attract buyers with hype and then suddenly withdraw the funds or liquidity, leaving buyers with tokens that cannot be sold or are worth almost nothing. Some tokens are coded so that buyers cannot sell at all, which is sometimes called a "honeypot". Warning signs include anonymous developers, no independent code audit, most of the token supply held by a few wallets, liquidity that is not locked, aggressive influencer marketing and pressure to buy before a "listing".

Pump-and-dump schemes

Pump-and-dump schemes are an old fraud in a new market. Organisers quietly buy a small, thinly traded token, then promote it through group chats, social media posts or paid influencers as the next big thing. When buyers rush in and the price rises, the organisers sell. The price collapses, and late buyers are left with losses. Be especially cautious of "signal groups" that tell members exactly when to buy.

Ponzi schemes and fake mining or staking

Ponzi schemes pay earlier investors with money from new investors, not from real profits. In crypto, they are often dressed up as cloud mining contracts, staking pools, arbitrage programmes or "liquidity mining" with fixed daily returns. They tend to collapse when new money slows. Warning signs include fixed high returns, complex explanations that do not add up, pressure to reinvest rather than withdraw and heavy emphasis on recruiting others.

Fake jobs and "task" scams paid in crypto

Task scams have spread rapidly. The FTC has warned about a sharp increase in reports of job scams that require you to pay to earn.

How task scams work

1. You receive a text or chat message offering flexible remote work, often described as "app optimisation", "product boosting", "review writing" or "data tasks".
2. You are onboarded to a platform where you complete simple tasks, such as clicking to "rate" products, and see commissions accumulate.
3. Soon, you hit a "combination task" or "lucky order" that puts your account into a negative balance. To continue and unlock your earnings, you must deposit your own money, usually in crypto.
4. Each deposit leads to another requirement. The earnings are never paid.

The FTC's advice is simple: a real job will not ask you to pay to get paid, and an employer will not ask you to deposit crypto. Other job-related crypto scams include fake recruiters who ask you to buy equipment with crypto, and "money mule" jobs where you are asked to receive funds and forward them as crypto. Acting as a mule can expose you to legal risk even if you did not know the money was stolen.

Similar tactics appear in fake loan offers that demand upfront fees. Our guide on how to avoid loan scams and fake offers covers those red flags.

Who gets targeted, and why older adults are at higher risk

Anyone can be a victim. Investment scams often target people in their 30s to 50s who have savings and some interest in investing. Task scams frequently target younger people looking for flexible work. But official data show that older adults suffer the largest losses.

The FBI's 2025 Internet Crime Report says Americans over 60 reported about $7.7 billion in losses across all internet crime, up 37% from 2024, and older adults account for roughly two-thirds or more of the money reported lost through crypto kiosks. Scammers target them because they are more likely to have savings and home equity, may be less familiar with crypto, may trust callers who claim authority, and may be isolated or reluctant to report.

Families can help by talking calmly about common scripts, agreeing on a code word for emergencies, and encouraging one simple rule: never move money because of a phone call; hang up and call back. In the US, the Justice Department's National Elder Fraud Hotline (1-833-372-8311) can help older adults and their families report fraud and find support.

How to check a platform or adviser before you invest

Checking registration takes a few minutes and can prevent devastating losses. Registration does not guarantee that an investment is good, but a lack of registration where it is required is a major red flag. Remember that crypto regulation varies by country and that some crypto activities are not covered by financial regulators at all.

Where to check in the US, UK and EU

A step-by-step check

1. Find the legal name. Look for the full legal company name and registration number on the website. Vague or missing details are a warning sign.
2. Search the regulator's register yourself. Use the official register, not a link from the platform. Confirm the website and phone number on the register match the ones you are using.
3. Search warning lists. Check the FCA Warning List, the CFTC RED List and your state regulator's alerts.
4. Test withdrawals early. If you do use a new platform, withdraw a small amount before depositing more. Be aware, though, that scammers sometimes allow early small withdrawals to build trust.

How to protect yourself: a practical checklist

Good habits stop most scams before they start. Here are the ones that matter most.

Account and device security

Use a unique password for every exchange and email account, stored in a password manager. Turn on passkeys, a security key or an authenticator app instead of text-message codes, ask your mobile carrier about port-out protection against SIM swaps, keep devices updated, and set withdrawal address allowlists where your exchange offers them.

Payment choices

If you are paying for goods or services, a credit card usually gives you much stronger protection than crypto. For online purchases, a virtual card can add another layer by limiting what a merchant can charge. If you need to send money abroad to a real person, regulated money transfer services are generally safer and traceable; our guide on how to send money internationally compares the options.

What to do if you have been scammed

If you think you have been scammed, act quickly and methodically. Speed can make a difference: exchanges and law enforcement can sometimes freeze funds before they are moved or cashed out. Do not let embarrassment stop you. Scams are designed by professionals, and reporting helps protect others.

Step 1: Stop all payments and contact

Do not send any more money, even if you are promised that one final payment will release your funds. Stop communicating with the scammer, but do not delete the conversations.

Step 2: Secure your accounts and devices

• If you shared a seed phrase, immediately move any remaining funds to a new wallet with a new seed phrase created on a clean device.
• If you signed a malicious approval, revoke it and move remaining tokens to a new wallet.
• If you gave remote access, disconnect the device from the internet, uninstall the remote-access software and have the device checked or reset.
• Change passwords for your email, exchange and bank accounts, starting with email, and turn on stronger two-factor authentication.

Step 3: Contact the platform, kiosk operator and your bank

• Exchange. If you sent funds from an exchange, or if you know which exchange received them, report the fraud through the exchange's official support channel. Ask whether the receiving account can be frozen.
• Kiosk operator. If you used a crypto ATM, contact the operator using the number on the machine or receipt. Some states require refunds in certain circumstances, often only if you report quickly.
• Bank or card issuer. If you bought crypto with a bank transfer, debit card or credit card, contact your bank immediately. Recovery is not guaranteed, especially if you authorised the payment, but banks can sometimes act, and in some countries reimbursement rules may apply.

Step 4: Gather evidence and report to the authorities

Save transaction IDs, the wallet addresses you paid, dates and amounts, kiosk receipts, bank and exchange records, and screenshots of the site, app and chats, including usernames and phone numbers. Then report:

When you file with IC3, include transaction details, wallet addresses and a description of what happened. The IC3 cannot promise recovery, but reports help investigators link cases, identify scam networks and sometimes seize funds.

Beware recovery scams

After a loss, many victims are contacted by people who promise to get their crypto back. The FBI and FTC have both warned that these offers are almost always a second scam. Sometimes they are run by the same criminals who took the money in the first place, using the victim's own details.

What recovery scams look like

• "Crypto tracing" or "fund recovery" companies that promise to trace and return your funds for an upfront fee or percentage.
• Fake lawyers who say they represent a class of victims or have a court order to recover funds.
• Fake government officials, including people claiming to be from the FBI, FTC, SEC or a foreign regulator, who say your funds have been found and you must pay a fee to release them.
• "Ethical hackers" who claim they can hack the scammer's wallet.
• Fake online reviews and social media comments praising a recovery service, often posted under articles about scams.

Legitimate recovery, when it happens, usually comes through law enforcement seizures, court-supervised processes or official restitution. If an agency is handling your case, you can verify contact by calling the agency on a number from its official website.

FAQ

What is the most common crypto scam right now?

By dollar losses reported to the FBI, cryptocurrency investment fraud, including pig butchering and relationship investment scams, is the largest category. By method, impersonation scams that push victims to crypto ATMs are among the fastest growing, especially for older adults.

Is it a scam if someone asks me to pay with a bitcoin ATM?

Yes, if someone else is telling you to do it. The FTC says no legitimate business or government agency will ask you to pay or protect your money by depositing cash into a crypto ATM. Hang up and call the real organisation using a number you know.

Can I get my crypto back after a scam?

Sometimes, but rarely. Recovery is most likely if you report quickly and the funds reach an exchange that can freeze them, or if law enforcement seizes funds. Report to the IC3 and FTC (US) or Report Fraud and the FCA (UK), contact the exchange or kiosk operator, and ignore anyone who promises recovery for a fee.

Will my bank refund money I sent to buy crypto for a scammer?

It depends on how you paid, the country and the circumstances. If you authorised the payment yourself, US banks are often not required to refund it, although you should still ask. In the UK, some authorised push payment fraud may be reimbursable under current rules, but crypto-related payments can be treated differently. Contact your bank immediately either way.

How can I tell if a crypto exchange is legitimate?

Check that it is registered or licensed with the relevant regulator (for example, a state money transmitter licence in the US, FCA registration in the UK, or MiCA authorisation in the EU), that the website and contact details match the official register, that it is not on warning lists such as the FCA Warning List or CFTC RED List, and that you found it yourself rather than through someone you met online.

What is address poisoning?

It is a trick where an attacker sends a tiny transaction to your wallet from an address that looks like one you use. If you later copy the address from your transaction history, you may send funds to the attacker. Always use a saved address book and check the full address.

Are all crypto ATMs scams?

No. Crypto ATMs are a legitimate way for some people to buy crypto with cash, although fees are often high. The problem is that scammers direct victims to them. If you are using one on your own initiative and sending to your own wallet, that is a different situation from being told to use one by a caller.

Did Minnesota ban crypto ATMs?

Yes. After HF3642 was heard and laid over in committee in February 2026, the ban was passed through the Senate companion bill, SF3868, and signed into law on May 5, 2026 as Chapter 65. According to the Minnesota House, the ban takes effect August 1, 2026, with kiosks to be removed and customer accounts settled by December 31, 2026.

Someone I met online is teaching me to trade crypto. Is that a scam?

Almost certainly. This is the classic pattern of pig butchering. The FBI advises never to invest based on advice from someone you have met only online. Stop depositing, try to withdraw what you can, and report it.

What should I do if a "recovery company" contacts me after a scam?

Do not pay them or share any information. Unsolicited recovery offers are one of the most common follow-up scams. Report the contact to the IC3 or FTC and only deal with law enforcement through official, verified channels.

Sources

Official sources referenced in this guide.

• Federal Trade Commission, What To Know About Cryptocurrency and Scams: https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams
• Federal Trade Commission, Data Spotlight: Bitcoin ATMs: A payment portal for scammers (September 2024): https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2024/09/bitcoin-atms-payment-portal-scammers
• Federal Trade Commission, Data Spotlight: False alarm, real scam: how scammers are stealing older adults' life savings (August 2025): https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2025/08/false-alarm-real-scam-how-scammers-are-stealing-older-adults-life-savings
• Federal Trade Commission, ReportFraud: https://reportfraud.ftc.gov
• FBI Internet Crime Complaint Center, 2025 IC3 Annual Report: https://www.ic3.gov/AnnualReport/Reports/2025_IC3Report.pdf
• FBI Internet Crime Complaint Center, 2024 IC3 Annual Report: https://www.ic3.gov/AnnualReport/Reports/2024_IC3Report.pdf
• FBI Internet Crime Complaint Center, Cryptocurrency Kiosk Complaint Data By State (PSA, May 15, 2026): https://www.ic3.gov/PSA/2026/PSA260515-2
• FBI, Cryptocurrency and AI Scams Bilk Americans of Billions (press release): https://www.fbi.gov/news/press-releases/cryptocurrency-and-ai-scams-bilk-americans-of-billions
• FBI, Cryptocurrency Investment Fraud (victim resources): https://www.fbi.gov/how-we-can-help-you/victim-services/national-crimes-and-victim-resources/cryptocurrency-investment-fraud
• FinCEN, Notice on Using Red Flags to Detect Illicit Activity Involving Convertible Virtual Currency Kiosks (FIN-2025-NTC, August 4, 2025): https://www.fincen.gov/sites/default/files/shared/FinCEN-Notice-CVCKIOSK.pdf
• Commodity Futures Trading Commission, Learn and Protect and customer advisories: https://www.cftc.gov/LearnAndProtect
• Commodity Futures Trading Commission, RED List: https://www.cftc.gov/LearnAndProtect/Resources/Check/redlist
• U.S. Securities and Exchange Commission, Investor.gov crypto asset resources and background check: https://www.investor.gov
• U.S. Securities and Exchange Commission, Tips, Complaints and Referrals: https://www.sec.gov/tcr
• FINRA BrokerCheck: https://brokercheck.finra.org
• Consumer Financial Protection Bureau, Submit a complaint: https://www.consumerfinance.gov/complaint/
• Financial Conduct Authority, Financial Services Register: https://register.fca.org.uk
• Financial Conduct Authority, ScamSmart and Warning List: https://www.fca.org.uk/scamsmart
• City of London Police, Report Fraud launches (January 2026): https://www.cityoflondon.police.uk/news/city-of-london/news/2026/january/report-fraud-launches/
• European Securities and Markets Authority, MiCA interim register: https://www.esma.europa.eu
• Minnesota House of Representatives, Session Daily: Law enforcement asks legislators to ban cryptocurrency kiosks to curb scams (February 2026): https://www.house.mn.gov/sessiondaily/Story/18917
• Minnesota House of Representatives, Session Daily: Cryptocurrency kiosk ban heads to House Floor as part of commerce package (March 2026): https://www.house.mn.gov/sessiondaily/Story/19039
• Minnesota House of Representatives, New Laws 2026: virtual currency kiosk prohibition: https://www.house.mn.gov/NewLaws/story/2026/5739
• Minnesota Office of the Revisor of Statutes, HF 3642 status: https://www.revisor.mn.gov/bills/94/2026/0/HF/3642/
• Minnesota Office of the Revisor of Statutes, SF 3868 status: https://www.revisor.mn.gov/bills/94/2026/0/SF/3868/
• Iowa Attorney General, Attorney General Bird Sues Crypto ATM Companies: https://www.iowaattorneygeneral.gov/newsroom/attorney-general-bird-sues-crypto-atm-companies-for-costing-iowans-more-than-20-million