What to Know About Cryptocurrency Scams

Protect yourself from criminals offering phony investments or the illusion of romance

Patrick J. Kiger,

Updated April 27, 2026

AARP

Reviewed by

Kathy Stokes

Comments

En español

Updated April 27, 2026

A hand dropping bitcoin tokens into a slot

Derek Abella

Key takeaways

Investment scams, including cryptocurrency investment scams, were responsible for $8.6 billion in reported losses in 2025, according to the FBI.
Many crypto investment scams use fake platforms or impostors to show false gains while blocking withdrawals.
Demands to pay fees or bills with cryptocurrency, especially through crypto kiosks, are a common fraud tactic.

Cryptocurrencies such as Bitcoin, Ethereum, Solana and hundreds of others may be touted as exciting, new commodities. But many people have experienced dramatic losses, some through bogus investment platforms touted by scammers as sure moneymakers.

The Federal Trade Commission (FTC) warns consumers that crypto investing comes with many risks, including scams.

Virtual money, unlike dollars, francs and other traditional currencies, isn’t backed by any government or central bank. Even so, you can use crypto to buy goods and services, exchange it for U.S. dollars on digital markets, and even obtain it at specialized ATMs, often referred to as crypto kiosks.

Unlike the value of government-backed money, that of virtual currencies is driven entirely by supply and demand. This can create wild swings that produce big gains for investors — or big losses. Crypto investments are subject to far less regulatory protection than traditional financial products such as stocks, bonds and mutual funds.

Cryptocurrency scams fall into two categories: investment and payment. The FBI reported that investment scams, including cryptocurrency investment scams, accounted for $8.6 billion in reported losses in 2025 — a massive share of the overall $20.9 billion that was reported lost to internet crimes last year.

When using cryptocurrency to pay scammers, victims reported having $1.8 billion stolen from them in 2025, according to the FTC, more than double the amount reported stolen in 2021, with actual amounts likely far higher due to underreporting. Criminals favor payments via crypto kiosks for their anonymity and general lack of oversight. (AARP is pushing for state laws to regulate these kiosks and protect consumers from scams.)

Types of cryptocurrency investment scams

Using investment platforms. Criminals lure unwary investors into setting up accounts on an online investment platform with the promise of fabulous returns. What the investors don’t know is that the platform is actually a Ponzi scheme, in which their returns come from money paid by other investors.

Phony investment managers. You may be contacted out of the blue by someone claiming to be an investment manager, who will promise to grow your money — but only if you buy cryptocurrency. They’ll guide you to an investment website that looks real but is a clever fake. When you try to withdraw some of your earnings, you can’t, or you’ll be told you first need to pay high fees.

Celebrity impersonations. Scammers impersonate celebrities, contacting fans through social media to offer a chance to make a killing on a cryptocurrency investment. They’ll ask you to send cryptocurrency to them by clicking on a link or using a QR code that supposedly belongs to the celebrity. In reality, your cryptocurrency goes straight to the scammer, and you’re not going to see it again.

Financial grooming/romance scams. “I’m convinced that these crypto romance frauds are the most common fraud in the world right now, and they’re really, really a problem,” says Steve Baker, a former FTC official who publishes the Baker Fraud Report newsletter.

Baker says crypto-related romance scams are so lucrative that organized crime organizations kidnap people to work in call centers in places such as Cambodia and Myanmar. The captive workers are forced to entice investors on the other side of the world with fake promises of romance to lure them into crooked investment schemes. (For more on these prison-like scam call centers, listen to this episode of the AARP podcast The Perfect Scam.)

Types of cryptocurrency payment scams

In this category, scammers running some form of fraud will pressure you to pay them in cryptocurrency, something no legitimate business or government agency would do.

For criminals, cryptocurrency has the advantage of being difficult to trace, without the same legal protections as credit or debit cards, and payments usually can’t be reversed.

“Do not invest in crypto with someone that sends you a text message, reaches out to you on social media or finds you online somewhere,” says Amy Nofziger, director of fraud victim support with AARP. “And if someone says that you owe a fee or payment and they [tell you to] directly go [to a] crypto kiosk certainly it’s a scam.”

Red flags

Claims that you’ll make big money. Someone you don’t know sends you a message out of the blue about an incredibly lucrative virtual currency investment opportunity with no risk and surefire profits.
Pressure to pay. A call, text, email or social media message claiming to be from a government agency, utility or other official body seeks a crypto payment to cover a bill, debt or fee.

Join Our Fight Against Fraud

Here’s what you can do to help protect people 50 and older from scams and fraud:

Tell lawmakers to stop criminals from using crypto kiosks to steal from us.
Sign up to become a digital fraud fighter to help raise awareness about the latest scams.
Read more about how we’re fighting for you every day in Congress and across the country.
AARP is your fierce defender on the issues that matter to people 50-plus. Become a member or renew your membership today.

How to protect yourself

If you want to invest in crypto, understand the risk. The virtual currency trade is speculative and volatile. As the FTC notes, “An investment that may be worth thousands of dollars on Tuesday could only be worth hundreds on Wednesday.”
Resist pressure to buy right now. Criminals often try to create a false sense of urgency around a supposedly red-hot cryptocurrency.
Check out any dealer in virtual currency options or futures contracts before you buy. The U.S. Commodity Futures Trading Commission (CFTC) has a tool for running an online background check. Avoid investing in or trading virtual currencies on the advice of someone you’ve only dealt with online, whether it’s an anonymous tipster on social media or a supposed romantic partner.
Do your research. Thoroughly research any virtual currency platform or digital wallet provider before providing any credit card information, wiring money or disclosing sensitive personal data.
Carefully read any agreement with a digital wallet provider. They likely will not accept responsibility for reimbursing you if your money is stolen, the Consumer Financial Protection Bureau warns. Note: Banks don’t accept responsibility for replacing your money if you were somehow connected to the theft through manipulation.
If you own crypto, never share your “private keys” — the long letter-and-number codes that enable you to access your virtual currency — with anyone. Keep them in a secure place.

What to do if you’ve been targeted

Submit a report to the FBI Internet Crime Complaint Center (IC3) or contact your local FBI Field Office and provide as much information about the transaction as possible.
Report it to your local police. If they resist taking your report, persist so you have a record of the loss.
File a report through the FTC’s online form at ReportFraud.ftc.gov.
For support and guidance, the trained fraud specialists at the free AARP Fraud Watch Network Helpline, 877 -908-3360, can share information on what to do next and how to avoid future scams. The AARP Fraud Watch Network also offers online group support sessions.

More resources

To learn more, check out the FTC’s page on cryptocurrency scams.

FINRA, a non-profit that supervises broker firms and educates the public about investments, has information on the risks of investing in cryptocurrency.

You can verify the registration status of anyone claiming to be a broker at the Commodity Futures Trading Commission.

Additionally, a prosecutor talks about investigating cryptocurrency crimes in this episode of the AARP podcast The Perfect Scam.

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The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

Patrick J. Kiger was a contributing writer for AARP. He has written for a wide variety of publications, including the Los Angeles Times Magazine, GQ and Mother Jones, as well as the websites of the Discovery Channel and National Geographic.

Kathy Stokes is the director of fraud prevention programs at the AARP Fraud Watch Network.