Topic
How to spot a crypto scam
Last reviewed:
- Quick fact 1
No real company or government agency will ever ask for your seed phrase.
Source: SEC Investor Bulletin, Crypto Asset Custody Basics for Retail Investors (Dec 12, 2025)
- Quick fact 2
"Guaranteed" returns are a red flag every time.
- Quick fact 3
Most crypto payments can't be reversed, so stopping before you send matters most.
The short lesson
Crypto scams work because payments are fast and usually final. Once you send, there's often no bank to call. The best defense is spotting the warning signs before you act.
Seven red flags:
1. Guaranteed or very high returns. Real investments don't promise profit. "Double your money" is a scam line. 2. Anyone asking for your seed phrase or private keys. Real support never needs them. 3. A "wrong number" text that turns friendly. A stranger chats for days or weeks, then brings up a crypto "opportunity." This is often called a pig butchering scam. 4. Pressure to act now. "Only today," "last spots," or "your account will be frozen." 5. Pay to unlock your money. Being told you have to send more to withdraw your profits is a sign the "profits" aren't real. 6. Fake celebrity giveaways. "Send 1, get 2 back" is always fake. 7. Payment only in crypto or gift cards. Real government agencies and real businesses don't demand this.
Scammers use WhatsApp, Instagram, dating apps, and texts, in English, Spanish, Hindi, and more. They often pretend to be coaches, traders, or support staff.
If you think you've been scammed:
- Stop sending money right away.
- Save the messages, wallet addresses, and payment records.
- In the US, report it to the FTC at ReportFraud.ftc.gov and the FBI at ic3.gov.
- Watch out for "recovery" services that charge a fee to get your crypto back. Many of them are a second scam.
Related terms
Go deeper in Lesson 9: What hurry and secrets look like
Common questions
What should I do if I sent crypto to a scammer?
Stop sending, save every record, and report it. In the US, report to ReportFraud.ftc.gov and ic3.gov. Also tell the exchange or app you used.
Can I get my crypto back after a scam?
Often not, because crypto payments are usually final. Be careful with anyone who promises recovery for a fee.
Are crypto giveaways real?
Offers like "send crypto and get double back" are scams, even when they use a famous name or face.
How do I know if a crypto teacher is legit?
Real education doesn't ask for your keys, promise profits, or tell you to send money to a person. Walk away if you see any of those.