How to spot a crypto scam

Crypto scams change their names every few months, but the patterns behind them barely change. If you learn the patterns, you can recognise a new scam the first time you see it.

Seven warning signs

1. A promised or fixed return

“2% daily.” “Double your money in 30 days.” Real markets don’t pay fixed returns. Anyone who promises one is either lying about the risk or paying early investors with later investors’ money.

2. You can’t withdraw without paying first

You see a growing balance on the app, but to withdraw you’re asked for a “tax”, “unlocking fee” or “verification deposit”. This is the most common end stage of a fake platform. The balance was never real. Paying more only increases the loss.

3. Pressure and secrecy

Countdown timers, “last few slots”, requests not to tell family. Real opportunities don’t disappear in an hour. Urgency is there to stop you thinking or asking anyone.

4. It started with a message from a stranger

A wrong-number WhatsApp, a friendly contact on Instagram, a “part-time job” rating videos or hotels. These conversations can run for weeks before crypto is mentioned. If someone you’ve never met in person steers you towards an investment app, stop.

5. Returns depend on recruiting others

Referral bonuses that matter more than the product are the mark of a pyramid scheme dressed up as crypto.

6. A famous face, a fake video

Scammers use celebrity photos and AI-generated videos of business leaders and finance creators to sell schemes. A real public figure will not DM you an investment link.

7. The token itself is built to trap you

Some new tokens are designed so buyers can’t sell. Others have anonymous teams, no audit, a few wallets holding most of the supply, or liquidity the creators can pull at any time. If you can’t find who built it and how supply is distributed, don’t buy it.

Five checks before you pay anyone

1. Search the platform’s name with the word “scam” and read what comes up.
2. Check the platform is registered with FIU-IND, which Indian crypto service providers must be.
3. Download apps only from official app stores, never from a link or an APK file someone sends.
4. Try withdrawing a small amount early. If you can’t, stop depositing.
5. Tell someone you trust before sending money. Scams depend on you not doing this.

If it has already happened

• Stop all further payments, whatever you’re told about recovering funds.
• Report it immediately at cybercrime.gov.in or call 1930. Speed matters for freezing money in the banking system.
• Save screenshots, transaction IDs, wallet addresses and chat history.
• Be wary of “recovery agents” who contact you afterwards. Many are the same scammers again.

Encume will never ask you to invest, send money or share account details. If someone claiming to be from Encume does, it is a scam.