Crypto scams: how they work, how to spot them and what to do

Crypto itself is not a scam, but it is high risk, mostly unregulated in the UK, and the payment method of choice for a very large share of investment fraud. A crypto scam usually follows one of a few repeat patterns, and three simple checks catch most of them. In 2025, crypto investment fraud was the largest source of reported losses to Americans, at $7.2 billion. This page explains the main types of cryptocurrency scam, how to check an offer before you pay, what to do if you already have, and where to report it in the US and the UK. This site sells nothing and asks for no sign-up.

Is crypto a scam?

No. Bitcoin and other crypto assets are real, and it is legal to buy them. What makes them risky is the lack of protection around them. The UK Financial Conduct Authority (FCA) says most crypto activities are not regulated in the UK, so you generally have no access to the Financial Ombudsman Service and no Financial Services Compensation Scheme (FSCS) cover if a firm fails. The FCA also says you should be prepared to lose all the money you invest in crypto.

In the US, the Commodity Futures Trading Commission (CFTC) gives a similar warning about automated trading claims: AI technology cannot predict the future or sudden market changes, so treat any bot that promises steady profit as a red flag.

There is a difference between risky and fraudulent. A real asset can fall in price, and that is a market risk. A fake investment platform shows you invented prices and returns, then stops you withdrawing. If you are new to the topic, start with the basics of crypto before you put any money in.

How much people lose to crypto scams

The figures below are reported losses.

The FCA says reports it receives about crypto investment scams have more than doubled since 2020. UK Finance links the rise in investment fraud to fraudulent adverts and social media posts offering big returns.

The most common crypto scams

Most crypto scams fall into six patterns, grouped here by how they reach you.

Fake investment platforms and trading robots

You see an ad on social media or in search results. It leads to a professional-looking site that shows fake prices and fake returns. Your account may even show growing profits. When you try to withdraw, the account is closed or you are asked to pay "taxes and fees" first, and then the scammers disappear. The FBI describes exactly this sequence.

A common claim is an AI bot that makes "tens of thousands of percent" in returns. The CFTC lists that as a scam signal. To see what automated tools can and cannot do, read what AI trading bots can and cannot do. Fake trading robots follow this same pattern.

Celebrity deepfake ads and giveaways

Fraudsters use celebrity images to promote fake investments. The FCA notes that crypto scam ads often carry celebrity images. The test is simple: check the person's own verified channels. Money expert Martin Lewis, for example, has said he never does adverts and never promotes investments, so any investment ad showing him is fake. The guide to celebrity crypto scams covers the typical formats.

Romance and "pig butchering" scams

"Pig butchering" is the name for a scam in which the criminal builds trust over time before asking for money. FinCEN, the US financial crimes regulator, describes scammers using fictitious identities, the guise of a relationship and elaborate storylines. The relationship eventually leads to a "can't lose" crypto platform. FinCEN says these schemes are largely run by criminal groups in Southeast Asia, using victims of labor trafficking as workers.

Impersonation calls that end at a Bitcoin ATM

A caller or text claims to be your bank or Amazon and warns about "suspicious activity" on your account. You are then pressured to withdraw cash and feed it into a Bitcoin ATM. The US Federal Trade Commission (FTC) says real businesses and government agencies never ask for this. Never withdraw cash because of an unexpected call, and contact your bank on a number you already know. For the mechanics, see how Bitcoin ATMs work.

Fake support and wallet phishing

Fake "support" accounts, lookalike websites and urgent messages try to get you to "verify" your wallet or hand over your seed phrase. Treat any request for a seed phrase or private key as a scam, whoever asks. Read what a seed phrase is and why nobody should ask for it.

Recovery scams

After a loss, fraudsters often come back. The FCA warns that you may be targeted again, including with offers to get your money back or to buy back the investment for a fee. The FBI also says victims are targeted by recovery scams. Treat any offer to recover your money for a fee as a warning sign; this is how crypto recovery scams work.

A crypto scam that ran on this domain

From 2020 until March 2026, bitcoin-billionaire.com ran the kind of funnel described above. Archived copies of its homepage show it carried the false scam promise "Earn $6,325 daily" and asked for a $250 minimum deposit. Its testimonials were invented, and its own small print called them "entirely fictitious". The sign-up form passed your details to "third parties providing trading services", and from 2023 to "investment education firms, data brokers and intermediaries".

In Spain, the brand was pushed in December 2024 with a deepfake of an RTVE presenter, which VerificaRTVE debunked on 31 December 2024. The domain then lapsed, was re-registered by a new owner on 23 October 2026 and now hosts this independent education site. For the full record, read how the Bitcoin Billionaire scheme worked.

How to spot a crypto scam before you pay

The FCA suggests three questions to ask about any crypto investment offer:

• Have you been contacted out of the blue?
• Are you being pressured to invest quickly?
• Are you promised returns that sound unrealistic?

If the answer to any of them is yes, stop. In the FCA's words, if an opportunity sounds too good to be true, it probably is.

UK check. Firms offering crypto products in the UK must be registered with the FCA or have permission to promote them. Search for the firm by name on the FCA Financial Services Register, check what it is registered for and that its contact details match what you were given. If you cannot find it, avoid it. Also check the FCA Warning List of unauthorised firms, but remember that a firm missing from the list may still be unauthorised or a scam. Registration alone does not give you FSCS or Ombudsman cover.

US check. The CFTC advises three steps. Research the company, run a reverse image search on the people shown on its site, and check how old the domain is at lookup.icann.org. Getting a second opinion from someone you trust also helps.

Treat these as warning signs too: fixed daily earnings, a request to pay in crypto or gift cards, a move to WhatsApp or Telegram, and a countdown timer. If you see one, stop and check the firm independently before you pay anything.

What to do if you've been scammed

Stop paying, including any "fee" or "tax" that supposedly releases your money. Contact your bank or card issuer straight away, using a number you already know.

In the US: file a complaint at ic3.gov whatever the amount, with full transaction details. The FBI says IC3 may be able to help banks and police freeze funds. You can also report at ReportFraud.ftc.gov.

In the UK: report to the FCA on 0800 111 6768, then to Report Fraud at reportfraud.police.uk or on 0300 123 2040. Report Fraud, run by the City of London Police, replaced Action Fraud on 4 December 2025. It covers England, Wales and Northern Ireland. In Scotland, call Police Scotland on 101.

Expect follow-up "recovery" offers, and do not pay for them. No one can promise that your money will come back.

What changes for crypto scams in 2027

The FCA says its new cryptoasset regime comes into force on 25 October 2027. Until then, the FCA's oversight of crypto is limited to financial promotions and anti-money laundering controls. Separately, Ofcom proposed a draft code in July 2026 with nearly 40 measures that would make platforms responsible for paid scam ads. The guides below go deeper on each type of scam.

Frequently asked questions