Investment & Crypto Scams
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Investment scams, particularly those involving cryptocurrency, cost consumers over $4.6 billion in 2023, making it the most financially damaging scam category reported to the FTC.
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How It Works
1
Scammers make contact through social media, dating apps, or unsolicited text messages and emails, often building a relationship or sense of trust over time.
2
They introduce a supposedly lucrative investment opportunity, frequently involving cryptocurrency, and promise guaranteed high returns with little to no risk.
3
Victims are directed to a fraudulent website or app that appears to be a legitimate investment platform. Early on, the platform may show fake profits and even allow small withdrawals to build credibility.
4
After the victim invests a significant amount, the scammer makes it impossible to withdraw funds, often demanding fake taxes or fees. Eventually, the scammer and the fraudulent platform disappear with the victim's money.
Red Flags
- Promises of guaranteed high returns with little or no risk.
- Pressure to act immediately or risk missing out on a limited opportunity.
- An online acquaintance or love interest quickly pivots to giving investment advice.
- Requests for payment exclusively in cryptocurrency, wire transfers, or gift cards.
- The investment platform or company is not registered with regulatory bodies like the SEC or FINRA.
- You are asked to pay fees, taxes, or other charges to withdraw your own money.
- The person who contacted you insists on moving the conversation to an encrypted messaging app like WhatsApp or Telegram.
What to Do If Targeted
- Stop all contact with the scammer immediately and do not send any more money.
- Take screenshots and save all communications, transactions, website addresses, and crypto wallet addresses involved.
- Contact your bank or financial institution to report the fraud and see if any transactions can be reversed.
- File a detailed report with law enforcement, including the FBI's Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC).
- Place a fraud alert or security freeze on your credit reports with Equifax, Experian, and TransUnion if you shared personal information.
- Beware of recovery scams where fraudsters claim they can get your money back for an upfront fee.
How to Report It
- FTC — Report the fraud to the Federal Trade Commission to help with law enforcement investigations.
- FBI IC3 — File a complaint with the FBI's Internet Crime Complaint Center, especially for internet-based crimes.
- SEC — Submit a tip or complaint to the U.S. Securities and Exchange Commission for investment-related fraud.
- CFTC — Report fraud involving commodities, futures, or certain digital assets to the Commodity Futures Trading Commission.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- Consumers reported losing more than $4.6 billion to investment scams in 2023, a 21% increase over 2022. — FTC 2024
- The FBI's Internet Crime Complaint Center (IC3) reported that investment fraud losses reached $4.57 billion in 2023, a 38% increase from the previous year. — FBI IC3 2023 Report
- Losses from cryptocurrency investment fraud schemes increased by 53%, rising from $2.57 billion in 2022 to $3.94 billion in 2023. — FBI IC3 2023 Report
- Investment and cryptocurrency scams were named the riskiest scam type in 2023, with a median dollar loss of $3,800 per victim. — BBB 2023 Scam Tracker Risk Report
- In 2023, adults 60 and older reported losing over $1.8 billion to investment scams, the highest loss category for that age group. — AARP / FBI 2024
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Frequently Asked Questions
A cryptocurrency investment scam is a fraudulent scheme where criminals convince you to invest in a fake crypto-related opportunity. They use deceptive tactics like promising high, guaranteed returns and creating fake websites or apps to steal your money. Scammers often exploit the complexity and lack of regulation in the crypto space to appear legitimate.
In 2023, consumers reported losing over $4.6 billion to investment scams, a 21% increase from 2022, making it the category with the highest reported losses. According to the FBI, losses from crypto-investment fraud specifically surged 53% to $3.94 billion in 2023. These figures represent only reported losses and the actual amount is likely much higher.
Recovering funds from a cryptocurrency scam is extremely difficult and rare. Crypto transactions are largely irreversible and designed to be anonymous, which scammers exploit. Be very wary of any service that claims they can recover your stolen crypto for a fee, as this is often another scam.
No, people of all ages are targeted by investment scams. While older adults often report higher individual dollar losses, FBI data from 2023 shows that victims aged 30 to 49 were the most likely group to report being victimized by investment fraud. Scammers use social media and dating apps to target a wide demographic.
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