Crypto scams: how to spot, avoid and report them

Crypto scams are frauds that trick you into sending cryptocurrency or money, or into giving someone access to your account or wallet. They range from fake investment platforms and phishing websites to fake support staff and romance scams, and they work because cryptocurrency transactions are fast, global and cannot be reversed. If you are in the EU, the most useful habits are simple: only use licensed platforms, never share your seed phrase, and check the regulator’s warning list before you invest.

What are crypto scams, in plain words?

A crypto scam is any scheme where someone lies to get your crypto funds. The technology is new, but the tricks are old: pressure, greed, fear and trust in someone who seems official.

Scammers like crypto for three reasons:

• Payments are final. There is no bank to call to reverse cryptocurrency payments once they are sent.
• Money moves fast and across borders, so crypto scammers can be in another country within minutes.
• No safety net. Unlike traditional bank deposits, which EU deposit guarantee schemes insure up to €100,000 (in the US, the Federal Deposit Insurance Corporation plays that role), crypto has no such protection.

Common crypto scams

These are the common crypto scams that reach people in Europe, from the most damaging to the most frequent.

Investment scams and fake platforms

Investment scams promise high, steady returns on cryptocurrency investments. You are directed to a professional-looking cryptocurrency platform or financial services app that shows your money growing. When you try to withdraw, there is a “tax”, “unlocking fee” or “verification deposit” first.

A worked example: you deposit €1,000 and the dashboard shows €3,000 after a month. To withdraw, you are told to pay €500 in fees. You pay, and a new fee appears. The balance was never real; scammers fabricate account statements to keep you paying more money.

Romance scams, often called pig butchering, follow the same script but start with a friendship or relationship built over weeks on a dating app or social media.

Ponzi schemes and fake yield

Ponzi schemes pay early investors with new investors’ money and call it profit. In crypto they appear as “staking”, “trading bots” or “arbitrage” programmes with fixed daily returns. They collapse when new money stops coming in, and initial investors who were paid out often unknowingly legitimize the scheme by recommending it.

Phishing scams and fake websites

Phishing scams copy a real exchange or wallet: fake websites, fake versions of apps, and emails or texts saying your account is blocked. The fake site asks for your login, 2FA code or seed phrase. Crypto phishing scams often follow data leaks, using your real name and details to look convincing.

Impersonation scams

Impersonation scams use someone you trust. Fake support staff reply to your complaint on X or Telegram. Callers pose as your bank, a government agency or the police and tell you to move your crypto holdings to a “safe” wallet. Some ask you to install software that will enable remote access to your computer, allowing fraudsters access to everything.

Giveaways and fake celebrity endorsements

Giveaway scams promise to double any crypto you send. Fake celebrity endorsements, often deepfake videos or fake news articles, promote a “new cryptocurrency” or trading platform. No real person or company gives away crypto in return for a payment.

Rug pulls, pump and dumps, and other scams

Rug pull scams and pump and dump schemes leave buyers with worthless crypto coins. Other scams involve blackmail emails demanding bitcoin, cloud mining contracts, and job offers that pay you to do “tasks” after you first deposit crypto. A fake initial coin offering or token presale is often the same scam in a new outfit.

How to spot a crypto scam

You can spot cryptocurrency scams by their red flags. One is enough to stop and check:

• Promises of high or fixed returns. All crypto is inherently risky; nobody can promise profit.
• Pressure to act now, keep it secret or skip “the bank’s questions”.
• Someone you met online steering you towards an investment.
• Requests for your seed phrase, private keys or 2FA codes. A real company never needs them.
• Payment only in crypto or by gift card, or to a personal wallet address.
• Withdrawal fees you must pay first before you can get “your” money out.
• No licence. The platform is not in ESMA’s MiCA register or your national regulator’s register.

Why crypto scams matter to you in the EU

Crypto scams matter because the law can protect you far less after the money is gone than before. In the EU, every company that offers crypto services must now hold a MiCA licence, so any platform that is not in the register should be treated as a warning sign in itself.

Before you invest money anywhere, check:

• ESMA’s interim MiCA register of authorised crypto firms, plus its list of non-compliant entities.
• The warning list of your national regulator: the AFM in the Netherlands, BaFin in Germany, the FSMA in Belgium and the Central Bank of Ireland all publish lists of unauthorised firms and known scams.

How to avoid falling victim

Most crypto scams can be avoided with a few fixed rules. Practise good cyber hygiene and follow them every time:

Our guide to security best practices explains each step in more detail.

How to report a crypto scam

If you have been scammed, act fast. Speed matters more than embarrassment, and scammers count on victims staying quiet.

1. Stop all payments, including any “fee” to release your money.
2. Secure your accounts. Change passwords, reset 2FA and move remaining funds to a new wallet if your seed phrase may be exposed.
3. Collect evidence: the wallet address you paid, each transaction hash, screenshots of chats, websites and emails.
4. Contact your exchange and your bank right away. If funds reached a regulated exchange, it may be able to freeze them.
5. Report it to the police. In the Netherlands you can also call the Fraudehelpdesk; in Germany you can file through your state’s online police service.
6. Tell your national regulator (AFM, BaFin, FSMA or the Central Bank of Ireland), so it can warn others.

Beware of recovery scams

After a scam, you may be contacted by people who claim they can recover stolen funds for an upfront fee. They may say they are lawyers, hackers or a government agency. This is almost always the same scam, or a second one aimed at the same victim. Real police and regulators do not charge you to investigate.

The bottom line

Crypto scams succeed through pressure and trust, not clever technology. Check every platform in the register, keep your keys to yourself, and if a deal makes you feel rushed or unusually lucky, walk away.

Related terms

• Phishing
• Rug pull
• Pump and dump
• Security
• DYOR