THE FRAUD CODEXSCAM DETECTION
CRITICAL THREAT

Cryptocurrency Investment Scam

Fake crypto trading platforms, signal groups, and investment opportunities that steal your cryptocurrency deposits.

Losses: $2.5 billion in crypto investment fraud (FTC 2024)
Targets: Crypto curious investors, new crypto users
Updated: 2026-01-06
Also known as: Bitcoin Scam • Crypto Trading Scam • Fake Exchange Scam

1How It Works

Scammers create fake cryptocurrency investment opportunities: **Fake Trading Platforms:** - Professional-looking website - Shows fake gains on your "investment" - Allows small withdrawals initially to build trust - Blocks large withdrawals or demands fees/taxes **Signal Groups:** - Telegram/Discord groups promising profitable trading signals - Run by fake "expert traders" - Early signals work to build trust - Eventually pump-and-dump or rug pull **Celebrity Endorsements:** - Fake news articles about celebrity crypto investments - Deepfake videos of Elon Musk, Jeff Bezos, etc. - Links to fraudulent investment platforms

How Scammers Make Contact

Social mediaDating appsTelegramWhatsApp

2Warning Signs & Red Flags

  • Guaranteed returns or "risk-free" investments
  • Platform not on official app stores
  • Can't find regulatory registration or company info
  • High pressure to invest more
  • Must pay fees or taxes to withdraw
  • Celebrity endorsements (usually fake)
  • Contacted through unsolicited message
  • Only accepts crypto deposits, no fiat

3Real-World Example

"An Instagram ad showed how to turn $500 into $5,000 trading Bitcoin. The platform looked legitimate and showed my balance growing. When I tried to withdraw my $10,000, they said I needed to pay 15% taxes first. I paid $1,500. Then they said I needed more fees. I lost my original investment plus the fees — $6,500 total."

— CFTC Consumer Alert

4How to Protect Yourself

  • Use only well-known, regulated exchanges (Coinbase, Kraken, etc.)
  • Never invest through links sent in messages
  • Research any platform — search "[name] + scam"
  • Don't trust celebrity endorsements without verification
  • Never pay fees to withdraw your own money
  • Be skeptical of guaranteed returns
  • Keep crypto in self-custody wallets when possible

5What To Do If You're a Victim

  1. 1Stop sending money/crypto immediately
  2. 2Document everything — screenshots, transactions, communications
  3. 3Report to FBI IC3 at ic3.gov
  4. 4Report to FTC at ReportFraud.ftc.gov
  5. 5Report to CFTC if futures/options involved
  6. 6Contact the blockchain's official support if applicable
  7. 7Be wary of "recovery services" — many are scams targeting victims

Report This Scam

FTC Report Fraud FBI IC3 Identity Theft

?Frequently Asked Questions

What is Cryptocurrency Investment Scam?

Fake crypto trading platforms, signal groups, and investment opportunities that steal your cryptocurrency deposits. Scammers create fake cryptocurrency investment opportunities: **Fake Trading Platforms:** - Professional-looking website - Shows fake gains on your "investment" - Allows small withdrawals initially to build trust - Blocks large withdrawals or demands fees/taxes **Signal Groups:** - Telegram/Discor...

How common is this type of scam?

Cryptocurrency Investment Scam is classified as a critical risk threat. Reported losses: $2.5 billion in crypto investment fraud (FTC 2024). This primarily targets Crypto curious investors, new crypto users.

Can I get my money back?

Recovery depends on how you paid. Credit card payments may be reversed through chargebacks. Wire transfers and cryptocurrency are rarely recoverable. Report immediately to your bank and file complaints with the FTC at reportfraud.ftc.gov and FBI IC3 at ic3.gov.

How do I report this?

Report to the FTC at reportfraud.ftc.gov. For internet crimes, file with FBI IC3 at ic3.gov. For identity theft, visit identitytheft.gov. Also contact your local police and your bank.

Sources & References

FTC: Cryptocurrency ScamsCFTC: Crypto Fraud

Related Scams

Pig Butchering Scam

Long-con investment scam combining romance and crypto fraud where scammers "fatten" victims before "slaughtering" them financially.

Crypto Giveaway Scam

Fake cryptocurrency giveaways promising to double your crypto if you send some first — often using fake celebrity accounts or deepfake videos.

Rug Pull Scam

Developers create a new cryptocurrency or NFT project, hype it up, attract investment, then abandon the project and disappear with investor funds.

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