Most Common Bitcoin Scams & How to Avoid Them
Bitcoin scams are causing record losses for Americans, with older adults especially at risk. Learn how the most common crypto schemes work, spot red flags, and get practical guidance to keep your family safe from fraud.
Table of Contents
Quick Facts
About this scam type
Cryptocurrency scams use digital currencies like Bitcoin as a way to steal money or trick people into sending payments that are impossible to get back. Scammers target victims through investment offers, urgent account alerts, and payment schemes, often with promises of high returns or threats of legal trouble.
How scammers contact victims
Most Bitcoin scams start with unexpected texts, social media messages, or app notifications. Scammers use these channels because messages are direct, feel urgent, and can be faked easily—making it hard to recognize a scam before it’s too late.
Who is most at risk
Older adults ages 60 and up are more than three times as likely to report losing money to Bitcoin ATM scams. Scammers target seniors because they may be less familiar with cryptocurrency, more trusting, and more vulnerable to fear or high-pressure tactics.
Understanding the risk level
Bitcoin scams often result in large, irreversible financial losses. Once money is sent to a scammer’s Bitcoin wallet, it cannot be recovered. Victims can lose thousands—or even hundreds of thousands—of dollars in a single transaction, and scammers will often re-target victims for even more money.
Most Common Bitcoin Scams
How it works: Scammers build trust through social media, dating apps, or wrong-number texts, pretending to be friends, mentors, or love interests. They guide victims to fake trading websites and encourage deposits for 'investing.' Small gains are shown to lure more money, but when victims want to withdraw, scammers demand extra 'taxes' or 'fees'—none of which is real.
Real Example (2025)
“Hello, I found you by mistake but I’m glad we connected. Have you ever tried crypto investing? I have a platform where I make easy profits.” Common Withdrawal Demand
“Your profit is ready, please pay a 12% withdrawal tax or your funds cannot be released.” Red Flag Signs:
- • Unsolicited investment advice from strangers
- • Promises of guaranteed profits or easy money
- • Demands to pay 'taxes' or 'fees' to access your funds
- • Unregistered or suspicious trading platforms
- • Pressure to keep the opportunity secret
How it works: Scammers impersonate government agencies, businesses, banks, or tech support and claim your money or account is at risk. They urgently direct victims to withdraw cash, go to a Bitcoin ATM, and scan a QR code or enter a wallet address. Money is sent instantly to the scammer and is unrecoverable.
FTC Alert (2024)
“This is the FTC. Your funds are at risk. Go to a Bitcoin ATM now, withdraw $4,000, and scan this QR code to protect your account.” Bank Fraud Department Impersonation
“Your bank account is compromised. Act now! Move your funds to safety by sending Bitcoin to wallet address …” Red Flag Signs:
- • Demand to use a Bitcoin ATM or scan a QR code
- • Claims of urgent account or legal problems
- • Told to keep the transaction secret or not speak to anyone
- • Requests that you convert cash into Bitcoin for payment
- • Impersonation of government, bank, or tech support
How it works: Fraudsters pretend to be crypto exchange staff or security agents. They call, text, or email you about supposed account problems and give fake support links, trick you into revealing passwords or 2FA codes, or urge you to move funds to a new wallet they control.
Fake Exchange Email
“Your cryptocurrency account has been compromised. Please click this link to reset your password and secure your funds.” FBI IC3 PSA (2024)
“This is Coinbase support. Your account is at risk. For your safety, please share your login information and 2FA code immediately.” Red Flag Signs:
- • Unsolicited phone calls or messages from 'support'
- • Requests for passwords, 2FA, or private account information
- • Instructions to move funds to a different wallet for 'security'
- • Links to websites that look like real crypto exchanges but are slightly misspelled
- • Pressure to act quickly to avoid 'account compromise'
How it works: Victims get messages (often via WhatsApp, Telegram, or text) offering remote tasks or easy job earnings. Fake apps or websites show commissions adding up, but eventually require a crypto deposit to unlock tasks, withdraw earnings, or avoid losing money. Any initial payout is just to build trust.
Task Scam Text (2025)
“Congratulations! You’ve earned $220 in commissions. Deposit $100 in Bitcoin to unlock withdrawal.” WhatsApp Job Offer
“We offer flexible online jobs. No experience needed. Send funds to our Bitcoin wallet to activate your account.” Red Flag Signs:
- • Unsolicited job offers through text or messaging apps
- • Requests to pay fees or deposits in cryptocurrency
- • Apps or platforms that only let you withdraw after sending more money
- • Fake success stories or screenshots of earnings
- • Pressure to act before an 'offer' expires
How it works: Scammers send threatening emails claiming they hacked your webcam or have compromising information. They demand Bitcoin payment or they’ll release sensitive videos or photos. Messages may include a real password leaked from a past data breach.
Sextortion Threat
“We have your password and a video of you. Pay $1,200 in Bitcoin within 24 hours or we’ll release the footage.” Red Flag Signs:
- • Threats of exposure, blackmail, or legal trouble
- • Claims to have hacked your accounts or devices
- • Demands for Bitcoin payment with a deadline
- • Mention of a password you recognize from your past
- • No proof provided, just threats and countdowns
Red Flags & Warning Signs
Top 5 Phrases Scammers Use
- 1 "Protect your money"
Used to create urgency and panic, pushing you to send funds quickly to 'safety'.
- 2 "Your account is compromised"
Claims your accounts or investments are at risk, prompting you to act without verifying.
- 3 "Act now"
Rushes you before you can talk to family, friends, or trusted sources.
- 4 "Scan this QR code"
Directs you to send payments instantly to a scammer’s wallet. No legitimate agency will do this.
- 5 "Pay with Bitcoin to avoid arrest"
Scares you into sending money with threats of police or legal action.
Scam Warning Signs
- Unexpected urgency or threatsScammers push fast action to prevent thinking or fact-checking.
- Asked to pay or transfer money via Bitcoin ATM or QR codeLegitimate organizations never demand payments this way.
- Requested secrecyTold not to discuss the situation with anyone—including bank staff or family.
- Unsolicited contact by text, app, or callReal companies don’t start conversations this way.
- Requests for login details, 2FA, or remote accessA true support agent will never ask for your password or verification codes.
Legitimate Communications
- Companies use official, secure websites onlyLegitimate organizations do not contact you via random messages or ask for login info.
- Never rushed into decisionsReal support teams allow you time to think and verify their identity.
- No payments through Bitcoin ATMs or QR codesGovernment and reputable businesses do not request these payment methods.
- Encourage you to independently verify requestsLegitimate companies will welcome you checking their identity via published contact info.
- No secrecy or threatsGenuine organizations never instruct you to hide conversations from family or bank staff.
How to Protect Yourself
A few proactive steps can prevent most Bitcoin scams. Share these tips with older family members and anyone new to cryptocurrency.
- 1. Always Verify Using Official Contacts
Independently look up phone numbers or emails for banks, agencies, or exchanges—never trust contact details from unexpected messages.
Save official websites and phone numbers as bookmarks or in your contacts.
- 2. Never Pay via Bitcoin ATM or QR Code on Demand
No legitimate company or agency will ever tell you to pay bills, fees, or transfer money using a Bitcoin ATM or QR code.
- 3. Stop and Talk to a Trusted Person
Take a pause and discuss urgent requests with a family member, friend, or bank staff—scammers often succeed when you act alone.
A quick chat with someone you trust can save you thousands of dollars.
- 4. Enable MFA and Tighten Account Security
Turn on multi-factor authentication for your exchange and email accounts. Use unique, strong passwords and never share verification codes.
Change passwords regularly, especially if notified of a breach.
- 5. Do Not Click on Suspicious Links or Download Apps from Untrusted Sources
Scammers set up fake websites and apps that look nearly identical to real ones but are designed to steal your information.
- 6. Research Platforms and Only Use Regulated Crypto Exchanges
Before investing, look for state or federal registration, and search for complaints or fraud warnings online.
- 7. Watch for Recovery Scams
If you have already lost money, beware of offers to recover your funds for a fee—these are almost always scams.
Sign up for Lifeguard to get real-time scam alerts and family monitoring that protects your loved ones every day.
What to Do If You're a Victim
If you think you have sent funds or information to a Bitcoin scam, quick action can limit the damage. There is hope—many scams can be stopped or reduced by acting fast.
- 1. Stop Any Further Payments Immediately (Do immediately)
Do not send any more money or cryptocurrency, even if threatened or promised a return. Scammers will keep asking if they think you will pay again.
- 2. Contact Your Crypto Exchange or Bank Right Away (Do immediately)
Report the incident to your exchange or bank's fraud department, freeze accounts if possible, and ask about reversing recent transactions.
- 3. Capture Evidence for Reporting (Do immediately)
Take screenshots of all messages, wallet addresses, transaction IDs (TXIDs), and any communications with the scammer. Keep these for investigators.
- 4. Report the Scam to the FBI IC3 and FTC (Within 24 hours)
File complaints at the FBI IC3 (ic3.gov) and FTC ReportFraud (reportfraud.ftc.gov) with as much detail as possible, including wallet addresses and transaction hashes.
- 5. File a Local Police Report (Within 24 hours)
Let your local police know about the scam. This can assist in investigations and provide an official record for your bank or insurance.
- 6. Consider a Credit Freeze and Identity Theft Steps (Within 1 week)
If you shared personal info (Social Security number, driver's license, etc.), contact credit bureaus to freeze your credit and monitor for identity theft.
- 7. Be Alert for Recovery Scams
Scammers often target past victims with new promises to recover losses for a fee. Never pay anyone who contacts you with these offers.
You can find more detailed help and reporting links at the FBI Internet Crime Complaint Center (ic3.gov) and the Federal Trade Commission (reportfraud.ftc.gov).
Frequently Asked Questions
Be wary if you are promised guaranteed or high returns, asked to pay taxes/fees to withdraw, or pressured to keep the opportunity secret. Always verify platforms and never trust investments promoted by people you just met online.
No. Legitimate organizations never ask for payments or transfers using Bitcoin ATMs or QR codes. These requests are always signs of fraud.
Stop further payments, contact your exchange and file reports with the FBI IC3 and FTC. Gather all evidence and let your local police know. Be alert for follow-up scams targeting victims.
Recovering Bitcoin payments is very difficult because they are irreversible. Reporting quickly improves the chance of tracing funds, but most losses are unrecoverable—be cautious before sending.
Discuss common scam tactics and red flags with them, encourage talking to you or a trusted person before acting on urgent requests, and help set up safe browsing habits and account protections.
Recovery scams target previous victims by promising to get their lost money back for upfront fees. These are nearly always fake and should be avoided.
You can report to the FBI Internet Crime Complaint Center (ic3.gov), the FTC at reportfraud.ftc.gov, and your local police. Include evidence such as wallet addresses and transaction details.