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$4.57B
Lost to investment fraud in 2023
FBI IC3
Under 60
Most investment-scam victims are younger than you think
$110K+
Average loss per victim
“The calls to my accounting office come almost every week now — crypto losses in the tens and hundreds of thousands.” Harry Shurek · Read the full story →
The Playbook

How crypto scams actually work

Pig-Butchering

It starts with weeks of friendship or romance. The “investment opportunity” comes later, once trust is built. By the time you realize, you’ve sent thousands.

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Fake Exchanges & Platforms

Real-looking dashboards with fake balances. Your deposits go through fine. Withdrawals never do — and then there’s a “tax” or “fee” to unlock them.

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Celebrity & Deepfake Endorsements

That video of a celebrity endorsing a platform? It’s fabricated. AI can now clone anyone’s face and voice.

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Giveaway & Doubling Scams

“Send 1 ETH, get 2 back.” Nobody returns crypto. Ever.

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⚠ Recovery Scams

After you lose money, “recovery agents” find you and offer to get it back — for an upfront fee. You get robbed twice. Nobody legitimate charges upfront to recover crypto.

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Where They Start

Where these scams find you

Crypto scams almost never start on a crypto site. They start where you already spend time:

WhatsApp & Telegram

The “private trading group” or “VIP signals” invite IS the scam starting. Legitimate investments never require a messaging app.

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Discord

Fake signal servers, airdrop phishing, hacked-server announcements.

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Reddit & Forums

The helpful stranger who DMs after you post about investing. Unsolicited investing DMs are scams, near-universally.

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Dating Apps

Where pig-butchering begins. The match “doing well in crypto” who offers to teach you.

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Social Ads

Deepfaked celebrity endorsements on Facebook, Instagram, YouTube, TikTok. If it promises guaranteed returns, it’s fake.

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Text Messages

“Wrong number” texts that turn friendly are scripted openings for pig-butchering.

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Warning Signs

Red flags that an investment is a scam

  • Guaranteed returns — no investment is guaranteed
  • “Act today” pressure — real opportunities don’t expire in hours
  • Conversations move to WhatsApp or Telegram
  • Withdrawal requires a “tax,” “fee,” or additional deposit
  • Platform isn’t on major app stores (Apple/Google)
  • Anyone asks for your seed phrase — NEVER share a seed phrase with anyone, ever
  • You can’t find the company registered with your state’s securities regulator
  • A stranger you met online introduced you to it
Next Steps

Already invested and worried?

  • 🛑 Stop sending money — regardless of what they say about “unlocking” your funds
  • 🛑 Never pay a withdrawal fee — that IS the scam
  • 📷 Screenshot everything — messages, transaction IDs, wallet addresses, website URLs
  • 🚨 Report to IC3.gov (FBI) and reportfraud.ftc.gov (FTC)
  • 🏦 Tell your bank immediately if you used a card or wire transfer
  • 🔎 Check all NEW messages here first — recovery scammers target recent victims
Check any suspicious recovery offer free →

Lost money to a scam? Some losses may qualify for tax deductions. Learn more →

FAQ

Common questions about crypto scams

How do I know if a crypto exchange is fake?
Check if it’s registered with FinCEN, listed on major app stores, and has verifiable company information. If withdrawals require unexpected fees, that’s a major red flag. Paste the platform URL into our checker for an instant assessment.
Can I get my money back from a crypto scam?
Honest answer: usually not. Crypto transactions are designed to be irreversible. Report to IC3.gov and your bank immediately. Be extremely careful of “recovery services” — most are scams themselves that charge upfront fees and recover nothing.
Is a Telegram trading group legit?
Almost certainly not. Legitimate investment firms don’t recruit through Telegram groups. “VIP signal” channels and “exclusive trading groups” are among the most common crypto scam formats.
Someone on a dating app wants to teach me crypto investing. Is this a scam?
This is the textbook opening for pig-butchering — the most devastating crypto scam. A romantic interest who steers conversation to investing is following a script. Check any platform they recommend here before sending money.

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