There's nothing cryptic about crypto scams
Theft is theft and there's really nothing that's hard to understand about crypto theft
There’s really not much new under the sun. Crypto theft is the latest in a long line of scams that relieve consumers of their time and treasure and it’s rising steadily in all its manifestations.
You can thank AI, tracking through social media and information sites and plain old impersonation. Last year alone, consumers lost an estimated $14-$17 billion to crypto crooks and the free-for-all shows no signs of slowing down. A few examples:
16M Coinbase user theft: Authorities in Brooklyn charged a man accused of stealing about $16 million from Coinbase users, highlighting risk even on major exchanges.
Bitcoin ATM fraud up sharply: The FBI reports scammers took in more than $333 million in 2025 using fraudulent bitcoin ATM transactions — a growing consumer risk.
Investment scams using cryptocurrency have been a major source of consumer losses, with millions in value extracted via fake investment opportunities.
Most crypto scams are just modifications of such time-honored tropes as the pig-butchering scam, phony romance ploys, investment swindles, impersonations and, SMS/SIM (texting) attacks that give criminals access to your financial accounts.
What’s being done about it?
Law enforcement agencies are hunting down and prosecuting a small percentage of crypto crooks, consumer protection organizations are publicizing the dangers and lawmakers are harrumphing loudly and threatening to do something … soon. Big online sites, which are the main conduit for much of the illegal activity, are making a token effort.
A few prevention and prosecution efforts:
In Massachusetts, Attorney General Andrea Joy Campbell filed a lawsuit against cryptocurrency kiosk operator Bitcoin Depot Inc. for allegedly using misleading and deceptive sales tactics to overcharge consumers, knowingly facilitating crypto scams that robbed Massachusetts consumers of millions of dollars, refusing to issue refunds to scam victims, and deceiving investors about the level of scam activity on Bitcoin Depot kiosks.
In Maine, consumer protection efforts reclaimed almost $2 million lost to Bitcoin kiosk scams for victims — showing some enforcement progress.
In Alabama, lawmakers proposed legislation to protect citizens specifically from crypto scam artists.
Scam reporting tools — such as California’s crypto scam tracker — show real consumer complaints about fake agents, suspicious apps, and fraudulent investment offers.
What can you do?
The world is wide open these days. The Justice Department and FBI are up to their holsters in political jousting and many state attorneys general are also busy suing the feds and each other instead of chasing down crooks who perpetrate real crimes on real people.
So, it’s basically up to us. Consumers need to be ultra-suspicious and super cautious. Here’s a handy checklist:
If crypto is the payment method, secrecy is encouraged, and urgency is high—it’s almost certainly a scam.
1. No legitimate company asks you to pay in crypto
If someone says you must send Bitcoin or stablecoins to:
fix a problem
unlock an account
pay taxes, fees, or fines
recover lost funds
It’s a scam. Full stop.
2. Crypto transactions are irreversible
Once you send it:
there’s no chargeback
no “cancel”
no recovery service that can reverse it
Anyone claiming they can “get your crypto back” for a fee is usually running a second scam.
3. Beware of “too smooth” investment pitches
Huge red flags:
“Guaranteed returns”
“No risk”
“Secret strategy”
“Limited-time opportunity”
Pressure to act right now
Real investing is boring. Scams are exciting.
Common Scam Types (and how to spot them)
“Pig-butchering” (romance + investing)
Starts as a friendship or romance (often on text or social apps)
Gradually shifts to “I made a lot of money in crypto”
Victim is coached step-by-step to send funds
Tip: If love + crypto enter the chat, exit the chat.
Crypto ATM scams
Scammer instructs victim to use a Bitcoin ATM
Often impersonates banks, tech support, or law enforcement
Tip: Banks, police, courts, and utilities never use crypto ATMs.
Impersonation scams
Scammers pretend to be:
Coinbase, Binance, PayPal, MetaMask
Internal Revenue Service
Federal Bureau of Investigation
Utility companies or banks
Stop. Don’t click. Contact the company directly using a phone number you trust.
Fake apps & fake websites
Look almost identical to real exchanges
Often promoted via social media or private messages
Tips:
Only download apps from official app stores
Double-check URLs letter-by-letter
Bookmark real sites and use only those
Smart Defensive Moves
Lock down accounts
Use strong, unique passwords
Enable hardware-based two-factor authentication (not SMS)
Protect your email account first—crypto theft often starts there
Never share:
Recovery phrases
Private keys
QR codes tied to wallets
No legit service will ever ask for these. Ever.
Slow everything down
Scammers rely on:
panic
urgency
fear of missing out
Take 24 hours. Talk to someone you trust. Scams hate daylight.
If you think a scam is happening
Stop sending money immediately
Preserve evidence (texts, emails, wallet addresses)
Report it to:
Federal Trade Commission (reportfraud.ftc.gov)
Your state consumer protection office
The exchange involved (even if funds are gone)
Reporting helps others—even if recovery isn’t possible.