How to Spot a Crypto Investment Scam Before You Deposit

Crypto scams cost people billions every year, and they work because they are built to feel urgent and exciting. The good news is that most follow the same patterns. Use this checklist before you deposit anything.

Red flags

• Promised or "guaranteed" returns. Real markets go up and down. Be especially careful with fixed daily, weekly or monthly percentages that never seem to vary.
• Pressure to act quickly. "Only 2 spots left" or "bonus ends tonight" is designed to stop you from checking.
• Payment for recruiting. If most of the income comes from bringing in new members rather than from an actual product or market activity, it may be a pyramid or Ponzi structure.
• Unsolicited contact. Investment tips from strangers on WhatsApp, Telegram, Instagram or dating apps are a classic entry point.
• Fake proof. Screenshots of profits, luxury photos and testimonials are easy to fabricate.
• Vague business model. If nobody can explain clearly where the returns come from, assume there is a problem.
• Extra fees to withdraw. Being asked to pay a "tax" or "unlock fee" before you can take your own money out is a strong warning sign.

Checks to run before depositing

1. Domain age. Look up the website address on a WHOIS service. A domain registered a few weeks ago is a concern.
2. Company registration. Confirm the business exists, and check whether the relevant regulator has issued a warning about it.
3. Reverse image search. Team photos and "customer" pictures are often stolen from elsewhere.
4. Independent reviews. Search the name with "scam", "withdrawal" and "complaint" and read the results critically.
5. The small test. Deposit a tiny amount, then withdraw it. A platform that makes withdrawals difficult at small scale will not improve at large scale.

Common scam types

• Romance or "pig-butchering" scams: a friendly stranger builds trust over weeks, then introduces a "great" investment platform.
• Impersonation: fake support agents, celebrity endorsements and cloned websites.
• Giveaways: "send 1 coin, get 2 back" never works.
• Recovery scams: after you lose money, someone offers to get it back for a fee. Do not pay.

Protect yourself

• Never share seed phrases, passwords, PINs or one-time codes.
• Type website addresses yourself and bookmark the correct ones.
• Use two-factor authentication and a unique password for every financial account.
• Invest only what you can afford to lose, and be wary of anything that feels too good to be true.

If you have been scammed

Act quickly. Contact your bank or mobile money provider to report the transaction, save every message, receipt and web address, and report the incident to the police or your country's cybercrime unit and the financial regulator. Do not send more money to "release" what you lost, and talk to someone you trust: scam victims are common and it is not your fault.