Only scammers demand payment in cryptocurrency (crypto). While there are legit uses for this digital currency, it is a popular payment method used by scammers. The scammer walks you through the payment process from withdrawal of cash to deposit into the ATM. 

Crypto is not backed by the government and is not insured like money deposited into a bank. Investments and payments involving crypto do not come with the same legal protections if something goes wrong. It’s like sending someone cash and payments typically are not reversible. 

While the stories scammers use may vary, the red flags of a crypto scam remain the same:

• Scammers try to gain your trust by pretending to be from a well-known business, law enforcement or another government agency.
• There’s a problem - you missed jury duty, you’re bank account is in danger- or a money making opportunity- a great investment, you won the lottery!
• You must act NOW! Scammers are in a rush to scam you before you can catch onto their act. They want you to act before you have time to think. Scammers often stay on the phone with you for hours to prevent you from talking to someone you trust about what’s going on.
• Only scammers insist you can only pay with crypto. No legitimate business or government agency is going to demand payment in crypto.  

Think something is suspicious? Stop and talk to a friend, family member or neighbor about what happened. Consumers are encouraged to report scams to SCDCA by either calling 844-TELL-DCA (835-5322) or clicking Report a Scam (PDF).

Cryptocurrency ATMs

Scammers may call or send you messages pretending to be financial institutions, government agencies or real businesses. The claims often involve bank accounts that are frozen, a missed court date or that you owe money.  To avoid this scam: 

• Never withdraw cash in response to an unexpected call or message. Only scammers will tell you to do that. They often instruct you to lie to bank employees about why you’re making the withdrawal.
• Don’t believe claims that you need to use a cryptocurrency ATM to protect your money or fix a problem.
• If you think there’s a real problem, use a phone number, website, or app you know is real to verify the story. Don’t use the contact info provided by the caller or that’s in the message. 

Investment Scams

These fake investment opportunities often promise huge returns. An online love interest may encourage you to invest or you may be contacted by an “investment manager” out of the blue.   

To avoid this scam:

• Research before you invest. Do an online search of the name of a digital currency, the investment company, and agent involved.
• Stick to investment apps in your device's official app store. Do not use unfamiliar sources to download apps or software.
• Be wary of promises of big returns. No investment is guaranteed to make money.
• Don’t mix online dating and investment advice.

Imposter and Giveaway Scams

Online videos, social media posts or direct messages may claim to be from a celebrity, influencer or well-known businessperson. Scammers promise to match or multiply the money you send them. In the end, all they do is steal it.

To avoid this scam:

• Search online for the celebrity's name plus the word "scam" to see if others are getting the same messages.
• Never send money to someone that you haven't met in real life.
• If you see a video, post or message claiming to be a celebrity asking for crypto, report it to the social media platform you’re using.

Phishing Scams

Crypto payments aren't the only targets for scammers. They also want access to crypto wallets. Scammers use a variety of schemes to trick people into clicking on links to fraudulent websites that ask for credentials to access their wallet.

To avoid this scam:

• Do not click on links or call numbers listed in an unexpected message.
• Do not reply to messages asking for login credentials or account details.
• Think the message may be legit? Do not use the contact info in the message. Look up customer support numbers or website addresses yourself. 

Blackmail Scams

Scammers may send emails, text messages or even mail to your home claiming that they have embarrassing or compromising photos or videos of you. The claims are often vague with an intention to scare the victim into providing cryptocurrency payments. If you receive these types of messages, contact the FBI immediately.