10 Things to Know About Cryptocurrency and Related Scams

4. Bogus crypto-investment websites can be very sophisticated. Scammers build sleek-looking sites, full of fake testimonials and cryptocurrency jargon, and even may make it appear that your investment is growing. But consumers who have invested on these fake platforms have reported that when they’ve tried to withdraw the purported profits, they are told to send even more crypto — and end up getting nothing back.

5. Romance scammers lurk behind many crypto schemes. Many victims said they thought they were in a long-distance relationship when their new love started chatting about a hot crypto opportunity he or she had acted on. About 34 percent of the staggering $1.3 billion people reported losing in romance scams in 2022 was sent in cryptocurrency.  

6. There’s no reason you should be required to pay for anything using crypto. “If a caller, love interest, organization or anyone else insists on dealing in cryptocurrency, you can bet it’s a scam,” the FTC says.

7. Cryptocurrencies can be legitimate investments. Investors make money by selling their cryptocurrency for more than they paid. But there’s no guarantee its value will go up; its value is based entirely on supply and demand.

8. Younger adults experience these scams more than older adults. Consumers ages 20 to 49 were more than three times as likely as older people to report losing money to a crypto investment scam in 2021, according to the FTC.

9. Some crypto scams are pyramid schemes. They’ll use new investors’ money to pay old investors, making it seem as though their investments are paying off. Four founders of a supposed cryptocurrency investment platform called Forsage were recently indicted in Portland, Oregon, and charged with running it as a pyramid scheme; they took in $340 million from people around the world, while promoting Forsage on social media as a legitimate, low-risk investment opportunity.

10.  If you’re a victim of any scam, report it to police. If they resist taking your report, persist so you have a record on the loss. Also report it to the FTC, at ReportFraud.ftc.gov. And to learn more, check out its additional guidance at ftc.gov/cryptocurrency.