How to recognize crypto fraud: 10 signs you may have become a victim

An increasing number of people are falling victim to crypto fraud without realizing it at first. The websites look professional, personal guidance is provided, and profits appear visible in an online dashboard. Only later does it become clear that it was a crypto scam all along.

How can you tell whether you have become a victim of crypto fraud? Below, you will find the 10 most common warning signs to help you recognize them.

What is crypto fraud?
Crypto fraud is a form of online fraud in which scammers present themselves as legitimate investment platforms, trading coaches, or crypto experts.

Increasingly, they also present themselves as potential romantic partners through dating apps or social media. The scammer first builds a personal or romantic relationship with the victim before introducing a supposedly profitable crypto investment.

High returns are promised with little to no risk. In reality, the goal is to persuade victims to deposit increasingly larger amounts of money until withdrawals are no longer possible.

These schemes often involve:
•    Fake trading platforms
•    AI trading bots
•    So-called crypto accountmanagers
•    WhatsApp or Telegram groups
•    Dating apps and social media

The 10 most Common signs of crypto fraud

1. Personal contact first, investment later
You meet someone online, for example through social media or a dating app. Trust develops over time. Eventually, the conversation turns to investing in crypto. The person offers guidance and appears knowledgeable.

This may indicate a form of crypto fraud known as a Pig Butchering Scam.

2. Someone monitors or takes control of your device
You receive assistance in carrying out transactions. They may ask to view your screen or even take control of your computer or phone. This poses a serious risk, as actions can be performed without your full awareness. 

The other party uses software such as:
•    AnyDesk
•    TeamViewer

3. Pressure to make quick decisions
You are told you must act quickly, for example because:
•    The market is “about to break out”
•    An “exclusive opportunity” is closing soon
•    You will miss out on profits otherwise

This sense of urgency is a well-known manipulation tactic used in crypto scams.

4. Communication only through chat apps
There is no physical address, no company registration number, and no verifiable business entity. All contact take place through WhatsApp or Telegram.

If problems arise, it becomes difficult to reach anyone or hold them accountable. Legitimate financial institutions are transparent about their identity and registration.

5. Promises of high or guaranteed returns
You hear about high profits with little risk. Fraudsters often use phrases such as “guaranteed profit,” “risk-free trading,” or “advanced AI trading bot.”

These are clear red flags. All investments involve risk.

6. You can withdraw at first, but not later
In the beginning, you may be able to withdraw a small amount. This builds trust and encourages you to invest more. Later, withdrawals fail or new conditions are introduced.

7. Additional payments required to release funds
You are asked to pay extra fees, taxes, or verification costs before receiving your profits. Reputable platforms clearly communicate fees in advance and do not require additional deposits to release your own funds.

8. The platform disappears
The website or app suddenly stops working. You can no longer log in or receive responses. This often happens when you start asking critical questions or attempt to withdraw your money.

9. Your contact person stops responding
The individual you were in contact with disappears or no longer responds to messages. This frequently occurs once you stop depositing money.

10. An offer to recover your money
You discover that your crypto investment is gone. Shortly afterward, someone contacts you claiming they can guarantee the recovery of your funds: for a fee. 

This is a second type of fraud known as a Recovery Scam. You pay for the service, but the promised recovery never happens.

If you believe you have been a victim of a crypto scam: 

Step 1: Stop making payments
Do not transfer any additional funds, even if you are told that you must first pay “recovery fees,” “taxes,” or “verification costs.” These are almost always attempts to obtain even more money.

Step 2: Gather and preserve evidence
Save chat conversations, emails, transaction records, and screenshots. Write down names, phone numbers, and the websites used. This information may later prove essential for an investigation.

Step 3: Report the scam
File a report with the police as soon as possible. 
You can also read our detailed article about what to do if you have been scammed through crypto.

If you have become a victim or suspect fraud, feel free to contact us. We may be able to assist you with advice, investigation into possible recovery options, and/or prevent further damage.
Contact us at: crypto@dataexpert.nl