Common crypto scam types and the red flags to watch
A crypto scam almost always belongs to one of a few families, and each family has one tell you can check before any money moves.
The main ones are phishing for your login or seed phrase, rug pulls on new tokens, romance or “pig butchering” investment cons, and fake exchanges showing profits you can never withdraw.
Reported losses keep climbing. The FBI’s 2025 IC3 Annual Report logged 181,565 complaints with a cryptocurrency link and $11.366 billion in reported losses, a 22% rise on 2024.
Scam types, entry points and the red flag for each
This table maps each family to where it usually starts and the single warning sign most worth memorising. The source column names who documents that pattern.
FinCEN itself cautions that no single red flag proves fraud, so treat each one as a reason to stop and verify.
| Scam type | Typical entry point | Key red flag | Source or check |
|---|---|---|---|
| Phishing and impersonation | Text, email, call or pop-up claiming fraud on your account | You are told to buy crypto and send it somewhere to “protect” your money | FTC |
| Rug pull | Hyped new token on social media or a launch platform | Developers can pull liquidity or block selling | Checkable onchain before buying |
| Romance and pig butchering | “Wrong number” text, dating app or social media message | A new online contact offers investment advice | FinCEN, FTC |
| Fake exchange or trading app | Link sent by a contact or an “investment group” | Withdrawals demand “taxes” or “fees” first | FBI IC3, FinCEN |
| Celebrity giveaway | Social media post or QR code | A famous name promises to multiply what you send | FTC |
| Recovery scam | Contact after you have already been scammed | A stranger offers to recover crypto you already lost | FBI IC3 |
Sources: FBI IC3 2025 Annual Report, FinCEN Alert FIN-2023-Alert005, FTC, What To Know About Cryptocurrency and Scams.
Video: Coin Bureau
Phishing and impersonation messages
Phishing skips the long relationship. The FTC describes scammers posing as Amazon, Microsoft, FedEx or your bank, claiming fraud on your account and telling you to buy crypto to fix it.
The FTC’s rule is blunt: no legitimate business will demand that you send cryptocurrency in advance. Exchange-branded texts follow the same script, which is why a Coinbase text scam is worth studying even if you use another platform.
Rug pulls live inside the token
A rug pull needs no personal contact. The project team raises money on a new token, then drains the liquidity pool or leaves holders unable to sell.
The red flags live in the contract and the liquidity setup, so they are checkable before you buy. We cover them in the seven rug pull red flags, and memecoins get their own checklist in how to spot a memecoin scam.
Pig butchering is the most expensive family
The FBI named cryptocurrency investment fraud the highest source of financial losses to Americans in 2025: 61,559 complaints and $7.228 billion reported. It says organised groups in Southeast Asia run these operations, often using trafficking victims as forced labour.
FinCEN’s 2023 alert explains the name. Scammers “fatten” a victim with friendly chat over time, usually opened as a wrong-number text or an old friend reconnecting, then steer them onto a trading site the scammer controls.
The FTC puts it in one line: never mix online dating and investment advice. Telegram is a common stage for this, which our Telegram girls crypto scam breakdown walks through.
Fake exchanges and the withdrawal trap
The fake platform is where romance and investment scams collect the money. The IC3 report describes dashboards showing fake profits, offers of loans to invest more, then “taxes and fees” charged when the victim tries to withdraw.
FinCEN lists warning signs on the site itself: a misspelled domain imitating a real business, a recently registered address, no physical street address, and contact by chat or email only.
An app installed from a website link instead of an official app store is another flag, and our guide to spotting a fake wallet app covers that check.
This page is general information about how scams operate, not financial or legal advice.
Crypto scam FAQ
What is the most common crypto scam?
By reported losses, cryptocurrency investment fraud. The FBI’s 2025 IC3 report attributes $7.228 billion to it, more than any other fraud type Americans reported that year.
Can a crypto recovery service get my money back?
Be very careful. The FBI logged 10,516 recovery scam complaints in 2025, with $1.4 billion in losses that may include the earlier scam. Report to ic3.gov instead of paying a stranger.
Is a crypto ATM payment request a scam sign?
Yes, when someone you have not met tells you to use one. FinCEN flags kiosk deposits to an address a new contact supplied, and the FBI counted $389 million in crypto ATM losses in 2025.
