Investment & Cryptocurrency Scams
Last updated September 18, 2026
The short answer
Someone is telling you about an investment opportunity with guaranteed high returns and little or no risk. They might have approached you on social media, a dating app, or through a friend. No legitimate investment guarantees returns. This is almost certainly a scam.
How it works
- 1
They build a relationship first
They approach you on social media, a dating app, or messaging platform. Sometimes a "friend" or family member who's already been tricked recruits you. They spend time earning your trust before mentioning investing.
- 2
They show you "proof" it works
They show screenshots of huge returns, a polished-looking trading platform, or let you make a small investment that seems to grow. The platform is fake. The numbers are made up.
- 3
They encourage you to invest more
Once you see your initial "investment" growing, they push you to add more money. "The market is hot right now." "This window won't last."
- 4
You can't withdraw your money
When you try to cash out, they say you need to pay "taxes," "fees," or a "security deposit" first. Each payment leads to another fee. The money is already gone.
Warning signs
- Someone you met online is giving you investment advice
- They promise guaranteed returns with no risk
- The "investment platform" isn't registered with the SEC or FINRA
- They pressure you to invest quickly before the opportunity disappears
- You can see your balance growing but can't actually withdraw money
- They ask you to pay fees or taxes before you can withdraw
- They want you to move money through cryptocurrency
- A friend or family member is pushing you to invest in something they just started doing
What it looks like
"My friend taught me to trade crypto"
Someone on Instagram shows off their lifestyle and casually mentions making money with crypto trading. They send you a link to a trading platform. You invest $500 and your balance "grows" to $2,000 in a week. When you try to withdraw, the platform says you need to pay a 20% "tax fee" first.
"Pig butchering" through a dating app
You match with someone on Hinge. After weeks of chatting, they mention they've been making great returns on a crypto platform. They walk you through setting up an account and making a first deposit. Over months, you invest $50,000. The platform, the returns, and the relationship are all fake.
A group chat "accidentally" adds you
You get added to a WhatsApp or Telegram group where people are sharing investment tips and showing profits. It feels like you stumbled into a goldmine. Everyone in the group is part of the scam, performing for you.
What to do
- Stop sending money immediately. Don't pay any "withdrawal fees." That's part of the scam.
- Don't trust the platform's balance. The numbers are fake.
- Document everything: screenshots of the platform, all conversations, transaction records.
- Report to the SEC at sec.gov/tcr and file with the FBI's IC3.
- Contact your bank or crypto exchange about the transactions.
- Warn anyone you know who may have been recruited into the same scheme.
Who gets targeted
Investment scams target everyone, but they're increasingly reaching younger people through social media. "Pig butchering" scams combine romance and investment fraud. The scammer builds a personal connection, then steers the conversation toward investing.
Smart, successful people fall for these scams. The fake platforms are sophisticated and the social engineering is expert-level.
By the numbers
- $8.65 billion lost to investment fraud in 2025, the largest loss category of any cybercrime
- FBI IC3, 2026
- Cryptocurrency investment fraud alone took $7.2 billion of it
- FBI IC3, 2026
- People 60 and over lost $3.5 billion to investment fraud in 2025
- FBI IC3, 2026
Frequently asked questions
What is a pig butchering scam?
A long-term scam where criminals build a relationship (often romantic) with victims before steering them toward fake investment platforms. The name comes from "fattening the pig," meaning building trust with small wins before the large theft. Losses often reach tens of thousands of dollars.
Can I get my money back from a crypto scam?
Cryptocurrency transactions are generally irreversible. Report immediately to the SEC, FBI IC3, and your crypto exchange. In some cases, law enforcement has frozen funds before they were withdrawn. Recovery services that promise to get your crypto back are usually scams themselves.
How do I check if an investment platform is legitimate?
Check if the company is registered with the SEC at investor.gov or FINRA's BrokerCheck. Legitimate platforms are registered, have verifiable contact information, and don't guarantee returns. If someone you met online recommended it, be extremely cautious.
Companies used in investment & cryptocurrency scams
These are the brands scammers hide behind in this scam. Each guide covers what that company will never ask you for, and how to report it to them directly.