How To Protect Yourself From Cryptocurrency Scams

Fraudsters use cryptocurrency scams to trick you out of money. They pose as credible individuals or businesses and request cryptocurrency for payment or to invest in a unique opportunity. Learn about cryptocurrency scams and how to keep your money and information safe.

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What you need to know

Be wary of any individual or company that only takes cryptocurrency as a form of payment.
Always keep your personal or banking information and digital wallet safe. Don't share your details with anyone.
Don't feel pressured or rushed into investing your money. Do some research to see if what you're investing in is legitimate. Learn about your options and ask questions.

What's a cryptocurrency scam?

There are many different cryptocurrencies, including some well-known ones, such as Bitcoin and Ethereum, and also new ones that are constantly being created. Fraudsters use a variety of scams to target you into purchasing and sending cryptocurrency as a form of payment or as an investment opportunity.

Common cryptocurrency scams

Crypto-only payments

A seemingly credible person or business demands a payment with cryptocurrency. They may claim they don't accept any traditional forms of payment, such as credit and debit card payments. Fraudsters demand cryptocurrency as a form of payment because the funds become hard to trace.

Investment schemes

Fraudsters try to lure you in with fake cryptocurrency investment opportunities. The fraudster says this is a once-in-a-lifetime prospect, limited time deal, a guaranteed high return or no risk opportunity. The fraudster will make you believe your investment is doing well, but you'll never receive your money back.

Phishing

Fraudsters use phishing to get your digital wallet private key and steal your cryptocurrencies. They send mass emails in hopes that you follow the attached link and share your personal and banking details.

How paying with cryptocurrency differs from traditional methods

Cryptocurrency is stored in a digital wallet that’s located online, on a computer or an external hard drive. These accounts aren't insured by the government, which makes it hard to recover your money if anything happens, such as having your digital wallet stolen or compromised, or sending cryptocurrency to a scammer.

Sending cryptocurrency doesn't require an intermediary, such as a bank. It can provide anonymity for the receiver, which makes it difficult to trace the transaction and get your money back.
The value of cryptocurrency is constantly changing, so there’s no guarantee of its worth.

Warning signs of cryptocurrency scams

Promises of free money
Vague details about where your investment funds are going
Someone you don't know shares a cryptocurrency investment opportunity that's too good to be true
You're advised that a cryptocurrency investment would have no risk and a guaranteed high return
A celebrity or social media influencer promotes a cryptocurrency investment opportunity
Misspelled words and grammatical errors in any communication you receive, such as an unsolicited email or social media post

Stay safe with our tips

If you’re told to pay with cryptocurrency, it’s most likely a scam. Credible institutions won't force you to pay with cryptocurrency.
Don’t follow any links or attachments from suspicious emails, text messages or social media.

Don’t feel pressured to invest quickly. Take your time to understand where your money is going.
If you have cryptocurrency stored in a digital wallet, protect the private key and don’t give it out to anyone.

Explore more about cryptocurrency scams

Internet Crime Complaint Center Opens in a new window.

Report fraud when it happens and track the latest data on fraud happening across the country.

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Read about the latest consumer and industry fraud alerts and how to protect your information.

Cybersecurity and Infrastructure Security Agency Opens in a new window.

Learn how to prepare for and mitigate the impact of cyberattacks.

Protect yourself from cryptocurrency scams

What you need to know

What's a cryptocurrency scam?

Common cryptocurrency scams

Crypto-only payments

Investment schemes

Phishing

How paying with cryptocurrency differs from traditional methods

Warning signs of cryptocurrency scams

Stay safe with our tips

Explore more about cryptocurrency scams

Continue to Internet Crime Complaint Center site?

Continue to FBI Scams and Safety site?

Continue to Cybersecurity and Infrastructure Security Agency?