In regular banking, a stolen charge can often be reversed. In crypto, it usually can't. Once funds leave your wallet, they're gone—no chargeback, no fraud department, no undo. That single fact changes everything: you can't rely on getting money back, so you have to avoid losing it in the first place.
The good news? Almost every scam trips at least one of six wires. Learn them, and you can spot a con in about ten seconds.
The six red flags
- Guaranteed or unusually high returns. "Guaranteed profit" doesn't exist. Big promised returns signal big risk—or outright fraud.
- Urgency and pressure. "Act now or miss out" exists to stop you thinking. Real opportunities don't evaporate in five minutes.
- Anyone asking for your seed phrase or private keys. No legitimate person or company ever needs these. This request alone means scam.
- Unsolicited contact. A stranger, "support," or a "celebrity" messaging you first is almost always a setup.
- "Send crypto to receive more." Any "send 1, get 2 back" offer is a giveaway scam. Always.
- Too good to be true. The oldest rule still works. If it seems impossibly good, it is.
Does it guarantee returns, pressure you to hurry, or ask for your recovery phrase? Any one of those is your answer. Disengage.
Why prevention is the whole game
Because crypto transactions are irreversible, there's no cleanup after the fact. The only reliable defense is recognizing the trap before you step in it. That's not paranoia—it's literacy. And once you can see the pattern, you'll spot it everywhere.
If it happens anyway
Getting scammed is not your fault, and reporting helps others. In the U.S., report to the FBI's IC3 (ic3.gov) and the FTC (reportfraud.ftc.gov). Save screenshots, tell your platform fast, and never send anything more.