How to Spot a Crypto Scam Before It Takes Your Money

My name is Pete Miller. I'm the founder of Scam-Proof Senior, and I lost a significant amount of money to a cryptocurrency scam. That experience is why I know what I'm about to tell you.

Crypto scams are now one of the most common ways seniors are defrauded in the United States. In 2023, the FBI reported that Americans over 60 lost more than $3.4 billion to investment fraud, and cryptocurrency was involved in the majority of those cases. Knowing how to spot a crypto scam before money changes hands is one of the most valuable things you can do for your financial safety.

The Setup Almost Always Looks the Same

Someone contacts you, or you see an ad, and they introduce a seemingly simple idea: invest a small amount of money in cryptocurrency and watch it grow quickly. They may claim to have insider knowledge, a special algorithm, or a proven track record. The contact often comes through social media, a dating app, a text message, or even a phone call from someone pretending to be a financial advisor.

They are patient. They do not rush you on day one. They may talk to you for weeks, building trust before they ever mention money. This approach has a name: pig butchering. You are the pig, and they are fattening you up before the slaughter.

The Red Flags to Watch For

Any promise of guaranteed returns is a lie. No investment guarantees profit, and cryptocurrency is particularly unpredictable. If someone tells you that you cannot lose, that is the moment to stop and walk away.

A second warning sign is urgency. Real investments do not disappear in 24 hours. If someone tells you that you need to act today or the opportunity will be gone, they are manufacturing pressure to stop you from thinking clearly.

A third flag is a request to move your money to a platform you have never heard of. Legitimate investment platforms are regulated and well-known. If someone asks you to send funds to an unfamiliar website, a cryptocurrency wallet address, or a wire transfer, that money is almost certainly gone the moment you send it.

What Real Investment Advice Looks Like

A legitimate financial advisor is licensed, registered, and easy to verify. You can look up any registered investment advisor at investor.gov, a free tool maintained by the U.S. Securities and Exchange Commission. If someone pushing a crypto investment cannot be found there, they are not who they say they are.

If Something Feels Wrong, It Probably Is

You do not need to be an expert in cryptocurrency to protect yourself. The scams that cost seniors billions of dollars every year do not succeed because their victims are uninformed. They succeed because the people running them are skilled at building false trust.

If someone contacts you about a cryptocurrency investment, slow down. Talk to a trusted friend or family member before you do anything. And if you want a straightforward resource to check your situation against, ScamProofSenior.com is free and built specifically for situations like this one.

Pete Miller, Founder — Scam-Proof Senior