Preventing fraud
Investment and employment scams
Protect yourself from cryptocurrency scams
Fraudsters use cryptocurrency scams to trick you out of your money. They pose as trustworthy 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.
- 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 well-known Bitcoin and Ethereum. New ones are constantly being created. Fraudsters use a variety of scams to pressure or trick you into purchasing and sending cryptocurrency as a form of payment or as an investment opportunity.
Common cryptocurrency scams
Crypto-only payments
A seemingly trustworthy person or business demands a payment with cryptocurrency. They may insist 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 track.
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 click on 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 your digital wallet gets stolen or compromised, or you unknowingly send cryptocurrency to a scammer, you'll never get your money back.
- Sending cryptocurrency doesn't require an intermediary, such as a bank. It can provide anonymity for the receiver, which makes it difficult to track 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
- 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 click on 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.
