How to Tell If Someone Is a Crypto Scammer: 8 Red Flags

Cryptocurrency scams are on the rise – in 2023, the FBI reported that U.S. victims lost over $3.9 billion to crypto investment frauds fbi.gov. With headlines constantly warning of “cryptocurrency fraud” and “crypto currency scams,” it’s natural to ask:

How can you tell if someone is a crypto scammer?
This guide will teach you the warning signs. By learning key red flags – from guaranteed profit promises to requests for untraceable wallets – you’ll be better equipped to protect your digital assets. We’ll also link to authoritative resources (FBI, CFTC, FTC, etc.) and helpful Brainstak articles so you can verify anyone’s claims and avoid costly mistakes.

Unrealistic Profit Promises

A classic hallmark of a crypto currency scammer is the promise of guaranteed, oversized returns. No legitimate investor can assure you that a volatile crypto will soar in value. In fact, regulators like the CFTC explicitly warn that “there is no such thing as a guaranteed or risk-free investment”cftc.gov. Scammers will claim you can “double your money in days” or “make 100% profit risk-free” – red flags of fraud. Legitimate crypto markets are highly volatile; even analysts can’t predict them. As Investopedia notes, anyone promising fast, big gains in crypto is likely trying to scam you investopedia.cominvestopedia.com.

For example, if a person contacts you online saying “send me $1000 now and I’ll give you $5000 tomorrow”, that’s a huge warning. They may use flashy charts or fake testimonials to entice you. Always remember: high returns require high risk cftc.gov. If someone claims otherwise, move on. The FTC plainly states “Only scammers will guarantee profits or big returns”consumer.ftc.gov.

High-Pressure Tactics

Scammers often pair wild promises with urgent pressure. They’ll rush you to invest right now, threatening you’ll miss out otherwise. Look out for phrases like “last chance,” “limited time,” or “exclusive deal.” The CFTC warns that fake offers often include urgent deadlines and promises of exclusivity cftc.gov. Phrases like “just today only!” or “we’re closing this deal” are meant to make you panic and skip due diligence.

Similarly, crypto fraudsters might brag about celebrity endorsements or fake news to create FOMO (fear of missing out). They may push you to “lock in” gains by sending money immediately. Always resist this pressure. Legitimate investments allow you time to think and ask questions. If someone becomes aggressive or threatens consequences for hesitating, they’re likely a scammer. As the FTC advises, “Never mix online dating (or social chatter) and investment advice”consumer.ftc.gov – pressure from any source is a bad sign.

Requests for Crypto-Only Payments

Another big red flag: the person only accepts cryptocurrency as payment. Scammers love crypto because transactions are irreversible. If someone insists you pay in Bitcoin, Ethereum, or another coin (instead of credit card or cash), be wary. The CFTC cautions that fraudsters often require payments in digital currency only cftc.gov, sometimes even walking victims through converting cash to crypto first.

The FTC puts it bluntly: “Only scammers demand payment in cryptocurrency. No legitimate business… is going to demand you send cryptocurrency in advance”consumer.ftc.gov. Likewise, if a “crypto com” representative asks you to “whitelist” some address or send crypto to an account they control, treat it as a scam. For example, many so-called “investment managers” will say, “Buy crypto and send it to me; I’ll invest it for you.” That’s almost certainly a fraud attempt.

If you hear chat about “which crypto wallet cannot be traced,” be especially cautious. Some scammers will push for obscure, supposedly untraceable wallets. In reality, no wallet is 100% untraceable. Privacy coins exist, but law enforcement can often trace transactions, especially if they eventually go to an exchange. The site ValueWalk explains that only non-custodial wallets (no KYC) have anonymity, but even then, blockchain analysis can reveal a lot valuewalk.com. A genuine advisor won’t focus on secret wallets – that’s usually scammers trying to launder funds.

Lack of Verifiable Identity

Legitimate crypto professionals have a track record or credentials. Crypto scammers, by contrast, often hide their identity. Be suspicious if the person you’re dealing with:

• Won’t answer questions about their background or experience. If you ask how long they’ve invested, which projects they’ve worked on, or for references, and they dodge or provide vague answers, that’s a warning sign investopedia.cominvesting.com.
  
• Has no online presence or scrubs their details. Check their LinkedIn, Twitter, or company page. Scammers often claim to be part of a project but you’ll find no credible info about them online. Investing.com points out that “poor-quality websites” and a lack of information about the creators of a project are key indicators of fraud investing.com.
  
• Provides no technical documentation. Real projects will have whitepapers or GitHub code you can review. A scammer usually has no whitepaper or one that’s full of jargon but no substance investing.com.

In short, a crypto currency scammer is likely to stay faceless. If you can’t independently verify who you’re dealing with – no company registration, no team bios, no track record – it’s safer to walk away. The Investopedia “cryptohunters” article also notes scammers often “can’t or won’t answer your questions” investopedia.com. If they dodge your inquiries or become defensive, they’re hiding something. A legitimate expert will welcome scrutiny; a scammer will resist it.

Fake Partnerships & Impersonation

Scammers love to name-drop or show fake credentials. They might claim to be partnered with big exchanges, endorsed by celebrities, or even that they work for a government or large company. These are almost always lies. For example, some Crypto.com scammers impersonate official support staff, claiming your account has an issue and asking for crypto payments. But Crypto.com itself clearly warns that they will never send unsolicited links or ask you to transfer funds help.crypto.com. If someone claims to be from Crypto.com (or Coinbase, Binance, etc.) and asks for money or private info, it’s almost certainly a scam.

Always double-check such claims:

• Verify company ties. If someone says they have an “exclusive deal with [Exchange X],” visit that company’s official site or contact their support to confirm. Many companies maintain alerts about known scammers on their official blog or support pages.
  
• Watch for domain tricks. A scammer might create a fake website with a URL similar to a real company (e.g. “crypto-com.com” instead of crypto.com). The Crypto.com security page advises ensuring “the website you are visiting is legitimate and that the URL is not manipulated” help.crypto.com.
  
• Check for language mistakes and branding. Official communications from big firms rarely have typos or generic templates. Scammers often copy logos poorly.

If someone insists they’re giving you early access or a secret deal via a “trusted partner,” pause and verify. Internal Brainstak articles can help – for instance, our list of fake crypto exchanges (2025) highlights known fraudulent platforms. Don’t be fooled by a quick claim; take a moment to confirm via multiple sources. In many cases, the red flags overlap: guaranteed gains and an unknown “partner” usually means a Ponzi scheme in disguise.

Suspicious Websites & Links

Often, scammers will direct you to a dubious website or app. Always double-check any link or downloadable content before clicking. Some tips:

• Check the URL carefully. The FTC warns to be sure you’re on the real website and not a look-alike (for example, an extra letter or wrong domain) help.crypto.com.
  
• Look for secure site indicators. A legitimate site should use HTTPS and have a valid certificate.
  
• Beware of unsolicited emails or downloads. If you receive a link to “install software” or “download an app” as part of a crypto transaction, do not click. Crypto.com states they will never send you unsolicited software links or remote-access requests help.crypto.com. Scammers use fake wallets or plugins loaded with malware to steal your keys.
  
  Many scammers create convincing but fake trading platforms. For a detailed breakdown of known frauds, check out our List of Fake Crypto Exchanges You Must Avoid in 2025.

If someone refers you to an exchange or wallet app, consider whether it’s reputable. For example, even the well-known Exodus wallet had a high-profile hack incident【18†】; scammers might use news like that to panic you into “safer” (but fake) alternatives. Always go through official app stores or verified links. If the website has poor design or broken English, those are big red flags. In short, any link you didn’t explicitly request to visit should be treated with extreme caution.

Social Media & Romance Scams

Many crypto scams start on social media or dating sites. The CFTC and FTC both note that “most digital asset scams begin on social media or through messaging apps”cftc.gov. A scammer might contact you via Facebook, Twitter, LinkedIn or even Tinder, posing as a friend, a love interest, or a fellow investor. They’ll slowly build trust and then steer the conversation to crypto investments. The FTC bluntly warns: “Never mix online dating and investment advice” – if a new friend or partner encourages you to invest in crypto, that’s a scam consumer.ftc.gov.

Romance scammers often say they’re overseas or can only meet online. They’ll eventually ask you to send crypto as part of a “business opportunity” or to help them out of a supposed emergency. Government impersonation is also common: for example, the FBI reports scams where fraudsters pretend to be IRS or law enforcement and demand crypto payments investopedia.comfbi.gov. Always be very skeptical of anyone who contacts you unexpectedly and then quickly asks for money or personal information. If the story sounds elaborate or too sympathetic, run your facts by a friend or do a quick search – often these stories turn up on scam alert forums or sites.

Promises of Anonymity or “Untraceable” Wallets

Some fraudsters try to lure you by emphasizing privacy or secrecy. Phrases like “which crypto wallet cannot be traced?” or “we use untraceable crypto” can be a red flag. No legitimate service will claim it’s completely untraceable (blockchain transactions are public by design). If someone is pushing anonymous wallets or mixing services before you invest, that’s suspicious. They might say you need a special wallet to avoid taxes or hide your transactions; often this is just a way to confuse you or launder stolen funds.

As noted, the truth is that only completely non-custodial wallets (no KYC, no record of identity) are “untraceable” in the sense that law enforcement can’t easily link them to you valuewalk.com. But even these aren’t 100% safe, and using them to avoid regulation is illegal in many countries. Instead of falling for anonymity pitches, stick with recognized wallet apps and exchanges. If someone won’t deal with normal wallets and insists on some obscure solution, it’s likely part of their scam playbook.

Other Warning Signs

While the above are the biggest red flags, watch out for these additional clues:

• Language and Grammar Errors: Scam communications often have awkward phrasing or spelling mistakes. The Crypto.com guide specifically advises to “look for language errors in communications or websites”help.crypto.com. If a person’s LinkedIn message or email is full of typos, double-check everything they say.
  
• Too Good to Be True Bonuses: Phrases like “refer 5 friends and earn double” or “matching funds” are classic Ponzi schemes cftc.gov. Genuine investments don’t pay you for recruiting others.
  
• Promises of Money Back Guarantees: No insurance or guarantee can protect you once crypto is sent. If you see claims like “100% money-back guarantee,” it’s a lie. The CFTC reminds that digital asset platforms aren’t insured like banks cftc.gov.
  
• Unverified or New Projects: If someone pushes a brand-new coin or token you’ve never heard of, check our guide on identifying fake crypto scam coins. Many scammers launch worthless tokens. Also see our list of fake exchanges to ensure you’re not being directed to a phishing site.
  
• Evasive Customer Support: If the person or “platform” they refer to has no real support channel or phone number, it’s a red flag. Legit companies provide ways to contact them; scammers do not.

Each of these clues on its own might not prove fraud, but taken together they paint a picture. If multiple items on this list apply to someone you’re dealing with, it’s safest to stop and do more research.

Protecting Yourself and Next Steps

If you suspect you’ve encountered a crypto scammer, here are steps to stay safe:

1. Stop Communication: Immediately cease contact with the person. Do not send any more money or personal info.
   
2. Verify Information: Look up independent sources. For example, consult official sites like the CFTC’s crypto fraud guide or the FBI’s cryptocurrency fraud report for similar scam descriptions cftc.govfbi.gov. Compare what you’ve been told against reputable news or financial outlets.
   
3. Check Social Proof: See if others have reported similar experiences. Forums like Reddit’s /r/cryptoscams or Trustpilot reviews can reveal common patterns.
   
4. Use Known Platforms: Only send crypto through reputable exchanges or wallets. If you need to create a wallet, use official apps and tutorials (see our how-do-I-create-a-crypto-wallet guide for safe practices).
   
5. Report the Scam: In the U.S., report to the FBI’s Internet Crime Complaint Center (IC3). The 2023 FBI report suggests everyone should immediately report any crypto scam fbi.gov. If you’re outside the U.S., check your local cybercrime agency. Reporting helps authorities track scammers.
   
6. Seek Official Help: If you’ve lost money, contact your bank or credit card company (if applicable) and ask about possible recovery. While crypto transactions are final, they may be able to trace funds if reported quickly. Also consider credit freezes or monitoring to prevent identity theft.
   
7. Educate Yourself: The best defense is knowledge. Follow trustworthy crypto news (for example, Brainstak’s Crypto Market Updates) and keep up with common scam tactics. Remember, scams evolve – stay skeptical of anything that sounds too easy or secretive.

By watching for the red flags above and taking these precautions, you’ll dramatically reduce your chances of falling victim to a crypto fraudster. Always ask questions and trust your instincts: if something feels off, it probably is.