Investment and cryptocurrency scams

What is an investment scam?

An investment scam is a pitch to put money into something that doesn’t exist, or that exists only to take your money. The promises are always similar: high returns, little or no risk, and a reason you must act now.

It is the most expensive fraud reported by older Americans. In its 2025 annual report, the FBI’s Internet Crime Complaint Center (IC3) recorded 16,926 investment-fraud complaints from people 60 and older, with losses of about $3.5 billion. Most of that involved cryptocurrency: people 60 and older filed 13,685 complaints about crypto investment fraud, reporting about $2.76 billion in losses, more than any other age group.

The SEC’s Investor.gov lists the red flags to watch for:

• Promises of great wealth and guaranteed returns, or “risk-free” opportunities.
• Offers that sound too good to be true.
• Pressure to invest right now.
• “Everyone is buying it” pitches and flashy testimonials that may be fake.
• Sellers who aren’t licensed or who exaggerate their credentials.
• Requests to pay by credit card, gift card or a wire to a personal account or overseas.

How do ‘wrong number’ texts turn into investment scams?

Many crypto scams don’t start with a sales pitch. They start with a friendly message: a text “sent to the wrong number,” a new connection on social media, or a match on a dating app. The stranger chats for days or weeks before mentioning how well their investments are doing.

Eventually they offer to show you how. You’re directed to an app or website that looks like a real trading platform. The FTC’s 2026 review of social media scams describes how these fake platforms show growing profits and may even let you withdraw a small amount at first. That builds trust, so people invest more. When you try to take out the rest, you’re told to pay taxes or fees first, and the money never comes back.

Investment scams that began on social media accounted for $1.1 billion in reported losses in 2025, more than half of all social media scam losses, according to the FTC. See how fake trading scams unfold step by step.

Why are crypto ATMs used in scams?

Cryptocurrency ATMs, also called Bitcoin ATMs or kiosks, turn cash into crypto in minutes and send it straight to a wallet the scammer controls. Once it’s gone, it is very hard to trace or recover.

The FBI reports that in 2025 it received 13,460 complaints involving crypto ATMs and about $389 million in losses. Losses rose 58% from 2024. People 60 and older reported $257 million of those losses, more than any other age group.

Crypto ATMs show up in many scams, not only investment pitches. Impostors posing as banks, government agents and tech support also tell people to “protect” their money by depositing it at a kiosk. Our guide to Bitcoin ATM scams explains the one rule that stops them.

How can you check an investment or adviser first?

Before you put in any money:

1. Look up the person and the firm. Investor.gov offers a free search that shows an investment professional’s background and registration.
2. Research the opportunity. Search the company and the platform’s name with words like “scam,” “review” or “fraud.”
3. Ask questions and get answers in writing. A real professional won’t rush you.
4. Never let someone you met online direct your investments. This is the FTC’s advice for anyone who meets an “investor” on social media.
5. Talk to someone you trust before you send money, especially if you’ve been told to keep it secret.

If you’ve already sent money, contact your bank or the exchange right away, and report it at IC3.gov and ReportFraud.ftc.gov (see where to report a scam). Be ready for a second wave: the FBI says people 60 and older reported about $540 million in losses to recovery scams in 2025, often from fake law firms or “officials” offering to get stolen crypto back for a fee. Our first-hour checklist covers what to do next.

More guides: recovery scams: when “we’ll get your money back” is a trap.