How to Spot a Fake Cryptocurrency or Crypto Scam

To spot a fake cryptocurrency or crypto scam, look for pressure, promises and payment demands. Real projects rarely guarantee profits or contact you first to “help you invest,” and they do not ask for your seed phrase. If a stranger, an ad or a “support agent” pushes you to send crypto fast, stop. Check the platform on a regulator list, search the name with “scam,” and talk to someone you trust before paying.

Why crypto scams are harder to spot now

In 2018 most warnings were about fake coin offerings. Today the biggest losses come from long, patient investment fraud. The FBI’s Internet Crime Complaint Center (IC3) says cryptocurrency investment fraud was the highest source of financial loss for Americans in 2025, with $7.2 billion reported. That is US data, but scam tactics cross borders.

The IC3 report also notes that these scams are largely run by organized groups in Southeast Asia, some using trafficking victims as forced labor. The people behind a friendly chat may themselves be victims.

Red flag checklist

Use this list before you send money, connect a wallet, or download an app.

1. Guaranteed or very high returns. The FTC says only scammers guarantee profits. Nothing in crypto is “low risk.”
2. Someone contacted you first. A text, a dating app match, a social media message or a “wrong number” chat that turns to investing.
3. Pressure to act now. “Last chance,” “only 24 hours left,” or “the price will jump.”
4. A request for your seed phrase or password. No honest company needs these.
5. Payment only in crypto, or by crypto ATM. The FTC says no legitimate business or government will demand crypto, and that this is always a scam.
6. You cannot withdraw. The site shows big profits, then asks for “tax,” “fees” or “release payments” before you can take money out.
7. No clear team, company or licence. Check a regulator list, not the website’s own claims.
8. Vague answers. The FTC notes that honest advisers explain how the money works. Scammers make big claims without details.
9. No public code or contract you can check. For a token, look up its contract on a block explorer and see who holds most of the supply.
10. Endorsements that you cannot verify. Celebrity videos, screenshots of profits and glowing reviews are easy to fake.

Treat any single red flag as a reason to stop and check. You lose nothing by waiting a day.

At a glance: scam check table

This table replaces the old infographic. Screenshot it or print it.

Question	Safe sign	Red flag
Who contacted whom?	You found and researched it yourself	A stranger or ad reached you first
What is promised?	Risk is stated plainly	Guaranteed profit or “zero risk”
How do you pay?	Regulated bank or licensed provider	Crypto only, gift cards or crypto ATM
Who asks for secrets?	Nobody	Anyone asking for a seed phrase or login
Can you withdraw?	Small test withdrawal works	New fees appear before you can withdraw
Is it registered?	Listed on a regulator register	Only “licensed” on its own website
Can you verify the code?	Public contract or code you can inspect	No code, hidden owners

Scam types reported in 2026

Pig butchering and crypto investment fraud

This is the largest category in the IC3 data. The IC3 describes the pattern: contact starts by text, social media, ads or dating apps, then moves to a messaging app. Victims are shown fake profits on a fake trading platform and sometimes offered loans to invest more. When they try to withdraw, they are asked to pay taxes and fees, and then the scammers disappear. The FTC adds a simple rule: never mix online dating and investment advice.

Impersonation

Scammers pretend to be your bank, an exchange, a delivery company, a government agency or a love interest. The FTC says some stay on the phone and walk victims through a crypto ATM, then give a QR code that sends the money into the scammer’s wallet. Real support never needs your seed phrase.

Deepfakes and fake celebrity promotions

An endorsement video can be made by software. The FBI and the ABA Foundation released an infographic in September 2025 to help people spot deepfake scams, and the IC3 report also flags voice spoofing and possible voice deepfakes in fraud. Do not trust a face or voice alone. Confirm through a channel you started, such as the company’s official site typed by hand.

Rug pulls and fake tokens

A rug pull happens when creators hype a new token, collect money from buyers, then drain the funds or stop the project. Some token contracts are built so that buyers cannot sell. The FTC also warns about scammers who pretend that a known business has launched its own coin. If a company really issued a token, established media will report it widely.

Wallet drainers and phishing

A wallet drainer is a fake site or link that asks you to connect your wallet and “approve” a transaction. The approval gives the scammer permission to move your tokens. Fake airdrop pages, fake mint pages and links in direct messages are common bait. Read every approval screen, and do not click links from unexpected messages.

Fake exchanges, apps and wallets

A copycat exchange or wallet app can look real. Download apps only from the provider’s official site or your phone’s official store, and check the developer name. A “trading platform” that a stranger gave you is not a platform you should trust with money.

Recovery scams

After a loss, people are targeted again by “recovery agents” who ask for an upfront fee. Crypto payments are usually not reversible, so be very careful with anyone who promises to get your money back.

Philippines angle: check before you send

If you use a crypto platform from the Philippines, start with the BSP list of virtual asset service providers (VASPs). The version we reviewed is titled “As of 15 July 2026.” Active non-bank VASPs on it include Betur Inc. (Coins.ph), Maya Philippines, Inc., Moneybees Forex Corp., Philippine Digital Asset Exchange (PDAX), TopJuan Technologies Corporation and WIBS PHP, Inc. Active bank VASPs include GoTyme Bank Corporation and Union Bank of the Philippines, Inc. The list changes, so open the current file yourself instead of trusting a screenshot.

Three practical checks:

• Name match. Make sure the company name on the list matches the one in the app and on the website exactly. Scam sites copy names.
• Offshore platforms. BSP memo M-2026-003 states that direct access by Philippine-resident retail customers to offshore virtual asset providers is not allowed unless they are registered with the BSP or SEC. An offshore platform that markets itself to Filipinos without registration is a warning sign.
• BSP Verifier. The BSP publishes a tool called BSP Verifier to check whether a firm is a BSP-regulated institution.

The SEC Philippines also regulates crypto-asset service providers under rules issued in 2025. We could not confirm a public list of SEC licence holders, so we do not name one here. If a platform claims an SEC licence, ask for the licence details and confirm them on the SEC website directly.

Being on the list is not a guarantee of profit or safety. It only tells you the company is registered. For how this applies to moving money home, see our guide to sending money to the Philippines and our USDT to PHP guide.

Protect yourself

• Keep your seed phrase offline and never type it into a website.
• Use an authenticator app or security key, not just SMS, for exchange accounts.
• Type exchange addresses by hand or use a bookmark you made yourself.
• Send a small test amount first, and read every wallet approval.
• Look up unfamiliar terms in our crypto dictionary.

What to do if you were scammed

1. Stop sending money. Do not pay a “release fee” or “tax” to get funds out.
2. Save the evidence. Keep screenshots, chat logs, wallet addresses, transaction IDs and website addresses.
3. Contact the exchange or app you used to send the funds. Tell them quickly.
4. Secure your accounts. Change passwords and move remaining funds to a new wallet if a seed phrase or approval was exposed.
5. Report it. The FTC lists these places for US reports: ReportFraud.ftc.gov, the CFTC at CFTC.gov/complaint, the SEC at sec.gov/tcr, and the IC3 at ic3.gov/Home/FileComplaint.
6. Philippine reporting channels. We have not confirmed current Philippine agency complaint channels for crypto fraud, so we do not list any here. Check the BSP and SEC websites directly, and report to the platform you used.
7. Ignore recovery offers. Anyone who contacts you offering to get the money back for a fee is a second scammer.

Crypto is risky even without scams, and none of this is financial advice. For a plain-English look at how coins and ledgers work, read blockchain explained simply, or browse the blog.