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Common Cryptocurrency Scams

  • Updated

Scam activity has increased significantly and scammers often target cryptocurrency users because digital coins can be moved quickly and anonymously. This article explains how scams work, the warning signs to look out for and where to get help. For more information on identifying and reporting scams, check out our article Identifying Cryptocurrency Scams. 

The most common cryptocurrency scams are: 

Recovery scams

Recovery scams typically surface after someone has already fallen victim to an investment or crypto fraud. In these schemes, fraudsters contact you, often posing as law-enforcement officers, legal representatives or “recovery specialists” and promise they can retrieve your lost funds if you pay an upfront fee. They exploit the irreversible nature of cryptocurrency transactions and the difficulty of tracing transfers on the blockchain.

Common warning signs include:

  • Unsolicited offers to recover funds you never authorised.
  • Upfront fees or “processing charges” required before any recovery work begins.
  • Guarantees of a full refund or “guaranteed” recovery of your assets.
  • Instructions to stay secret, often claiming a limited-time opportunity.
  • Lack of verifiable credentials or pressure to avoid independent verification.

Once you pay the fee, the scammer cuts off contact and your money is never returned. No legitimate service can promise or guarantee the recovery of stolen cryptocurrency, and reputable law-enforcement or consumer-protection agencies do not charge fees to investigate fraud.
 

Phishing scams

Phishing scams typically begin with an unsolicited email, SMS or instant message claiming to be from a wallet provider, exchange or popular platform. The scammer will direct you to a website that looks almost identical to the real one, such as a cloned UniSwap webpage or a fake Exodus login page, and ask you to enter your seed phrase, private key or login credentials. Once you do, they can drain your funds. 

Common warning signs include:

  • an unexpected message asking you to verify your account or confirm a transaction;
  • links to websites with slightly altered URLs or misspellings;
  • urgent language threatening to suspend your account or alleging unauthorised activity; and
  • attachments or downloads you did not request, which could install malware.

The Australian Cyber Security Centre (ACSC) advises never to click links in unsolicited messages. They recommend typing URLs manually or using bookmarks to reach services, checking domain names carefully before entering any information, keeping your device software and antivirus up to date, and never sharing your seed phrase or private keys. No legitimate service will ever ask for them.

Investment scams and crypto-related fraud

Many crypto scams begin with an unsolicited phone call, text, email or social-media message from someone claiming to be a broker or investment manager. Scammers may promise guaranteed, quick returns or tax-free benefits. They often promote investments in shares, cryptocurrency or other assets with “high returns,” or offer commissions for recruiting others. They might impersonate well-known companies, regulators or celebrities to appear credible. Typical tactics include:

  • Unexpected contact – out-of-the-blue offers via phone, email, text or social media.
  • Pressure to act fast – you’re pushed to transfer crypto off your exchange to an unfamiliar platform or pay extra fees before you can withdraw.
  • Guarantees of high returns or “free” money – legitimate investments can never promise profits.
  • Payment in crypto only – a genuine financial services firm rarely asks you to pay using cryptocurrency.
     

By staying vigilant, doing your own research and treating any “too good to be true” offer with scepticism, you’ll greatly reduce the chance of falling victim to an investment fraud.

Social media (Facebook and Instagram) scams

Scammers set up fake profiles on social-media sites, messaging platforms and apps. They may pretend to be a friend, family member or even a government agency or business and often impersonate celebrities or use logos from legitimate organisations to appear convincing. Once they gain your trust, scammers might:

  • convince you to invest in a crypto scheme with “guaranteed” returns;
  • invite you to enter competitions or special offers that require payment or personal details;
  • claim to be overseas and ask you to pay for shipping or other costs before a sale can be completed; or
  • send a link to a fake login page to steal your account credentials (phishing).

You can reduce your risk by verifying social-media accounts: check how long the account has been active and look at follower numbers and posts. They also advise being cautious of unsolicited job offers or investment opportunities; legitimate recruiters conduct interviews and verify your qualifications. ScamWatch warns never to send money, personal photos or identity documents to someone you only know online and to act quickly if you suspect a scam by contacting your bank, changing your passwords and reporting the incident.

Romance scams

Romance scams occur when fraudsters form a relationship with victims through dating sites, social media or gaming apps. They build trust quickly and may claim to have strong feelings for you. Once an emotional connection is established, the scammer may:

  • encourage you to move the conversation off the dating platform to private messaging apps;
  • ask for money to help with an “emergency” or to invest in a crypto opportunity they say is legitimate;
  • pressure you to set up accounts or transfer crypto on their behalf; or
  • refuse to meet or video chat, claiming they’re overseas or have technical issues

Other red flags include profiles that don’t match their story, requests for intimate photos or personal information, and anger or threats if you don’t comply. ScamWatch stresses that you should never send money or disclose your bank or crypto account details to someone you haven’t met in person. They recommend taking time to verify who they are by doing a reverse image search or searching their name together with the word “scam,” and talking to trusted friends or family before sending money.

Lottery scams

Lottery scams begin with an unexpected notification, often a letter, postcard, email or even a scratch-and-win card. They claim you’ve won a prize or lottery you never entered. The communication will instruct you to call a number, pay a “processing fee” or transfer money before your “winnings” can be released. Once you engage, the scammer either pockets the fee or steals your personal and financial information.

Common warning signs include:

  • Receiving a scratch-and-win card or notification by mail out of the blue claiming you’ve won;
  • Being asked to pay an advance fee, tax or processing charge to release your prize;
  • Instructions to keep the win secret or to act quickly to claim your prize;
  • Claims that you didn’t have to enter or register to win;
  • Requests for payment via wire transfer, gift cards or cryptocurrency; and
  • Calls or messages coming from unrecognised numbers or overseas locations.

The Australian Cyber Security Centre (ACSC) advises that legitimate lotteries never require you to pay fees to claim a prize and always allow you to verify a win through their official channels. They recommend ignoring unsolicited prize notifications, never providing personal or banking details in response, and reporting any prize-claim scams to ScamWatch. If you’re uncertain, contact the organisation directly using publicly listed contact details rather than those provided in the notification.

Learn more in our full guide: Crypto Lottery Scams Explained: How to Spot and Avoid Them

Remote access scams

Remote access scams start with a phone call or pop-up message from someone pretending to be from a well-known telecommunications or computer company, such as Telstra or Microsoft. The scammer claims your computer has a virus or a problem with your internet connection and asks for remote access. Once they control your device, they may steal personal information, demand payment for unnecessary software or ask for your bank or credit card details. Common warning signs include:

  • an unsolicited call or message about a technical problem;
  • requests to download remote-access software;
  • demands for payment or personal information; and
  • a caller who becomes aggressive or persistent.

The Australian Cyber Security Centre (ACSC) advises people to never allow an unsolicited caller to access their computer. They recommend hanging up and contacting the company using a phone number found on an official website, keeping devices updated with reputable antivirus software and not providing personal or banking details over the phone.
 

Fake crypto exchange scams

Fake crypto exchanges pose as legitimate trading platforms but are designed to steal your funds or personal information. They often mimic the look and feel of real exchanges—complete with similar domain names, logos, trading interfaces and “helpful” features—to lure victims into depositing money. Once you transfer crypto or fiat into your account, the site may lock you out, refuse withdrawals or vanish altogether.

Common warning signs include:

  • No regulatory compliance
    The exchange does not display any licence or registration details, nor does it require standard customer protections like Know Your Customer (KYC) checks.
  • Unrealistic promises
    Claims of “risk-free” trading, guaranteed high returns or extremely low fees that sound too good to be true.
  • Poor security measures
    Lack of two-factor authentication (2FA), no evidence of cold-storage for user funds, or missing encryption protocols.
  • Lack of transparency
    No clear information about the team behind the platform, company location or how user assets are stored and protected.
  • Artificial trading volume
    Inflated or inconsistent volume figures that don’t match other data-aggregation sites, suggesting fake liquidity.
  • Withdrawal problems
    Inability to withdraw your own funds or unexplained delays once you request a payout.
     

Job scams

ScamWatch warns that job scams deceive people by offering high-paying work with little effort. Scammers may pretend to be recruiters for reputable companies or online shopping platforms and can even impersonate well-known recruitment agencies. They often ask applicants to pay a “recruitment fee” or purchase training materials, promising reimbursement once you start working. Cryptocurrency or bank transfers are common payment methods, and it’s extremely difficult to get money back once sent. Warning signs include:

  • Unexpected messages via WhatsApp, Signal or Telegram from a recruiter;
  • Promises of high income while working from home with little experience or effort;
  • No interview or discussion about your qualifications; the hiring process is extremely quick;
  • Requests to top up an account with your own money or crypto to complete tasks;
  • Jobs involving transferring money or packages for someone else (you may unwittingly become a “money mule”); and
  • Upfront fees for recruitment or training.

To reduce the risk of job scams, ScamWatch advises not to trust a job advertisement solely because it appears on a popular platform. They highlight that you should never send money or share your bank, credit-card or crypto-account details with someone you’ve only met online. 

Final tips and getting help from Cointree

  • Stay vigilant. ScamWatch emphasises being sceptical of unsolicited offers, whether for romance, investment, jobs or giveaways. Take time to think before acting and don’t feel pressured to send money quickly.
  • Contact Cointree support directly. We will never ask you to send cryptocurrency to an external wallet or to download remote-access software. If you receive a suspicious message claiming to be from Cointree, avoid clicking links and contact us via our official support channels so we can verify the communication.
  • Report scams. By reporting scams to ScamWatch and ReportCyber, you help authorities warn others and disrupt scam networks.

Staying informed and practising good security habits are the best defences against scams. Cointree is committed to supporting our members and educating the community so we can all trade safely.


 

 


 

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