Bitcoin Scams: What They Are, Why They Work, and How to Protect Yourself
Bitcoin has been around for more than a decade, and with it has come an entire ecosystem of legitimate innovation, investment communities, and scams. If you’ve spent any time online in the last decade, you’ve probably seen promises of guaranteed returns, “once-in-a-lifetime opportunities,” and strangers insisting they can help you grow your crypto portfolio with 70% weekly investments week after week.
For most people, it’s confusing about how crypto really works. For victims, it’s devastating. And for law enforcement, banks, family members, it’s often overwhelming.
Through Intelligence for Good and Anti-Scam Education, I’ve worked with countless victims and analysts to understand how these scams work. The good news is that many of the patterns are consistent, predictable, and preventable once you know what to look for.
This guide breaks down what bitcoin scams look like, why people fall for them, and what you can do to stay safe.
What Exactly Is a Bitcoin Scam?
A bitcoin scam is any scheme where someone manipulates or deceives you into sending cryptocurrency to a wallet they control with no intention of giving it back. The technology is legitimate. The criminals are not.
Some of the most common approaches include:
1. “Guaranteed profit” investing
Scammers pose as investment coaches, traders, or financial advisors who promise to “manage” your money for you. They use screenshots, fake dashboards, and social-media testimonials to look convincing. One of the largest red flags? If anyone who guarantees returns in crypto they are lying.
2. Pig-butchering (“romance + investing”)
This is one of the fastest-growing crypto fraud types. Criminals build long-term emotional trust, often weeks or months, then slowly introduce a “special investment opportunity” that you can be a part of. You’re being groomed if someone you’ve never met is making you a “pitch of a lifetime.”
3. Impersonation scams
Scammers pretend to be a well-known exchange, support team, government agents, and celebrity. They claim your wallet is locked, your tax bill is overdue, or your funds must be “verified.” Keanu Reeves is not in love with you, Jennifer Anniston is not your long lost lover, and Avril Lavigne and Brittany Spears are not in a fight over you.
And yes, these are conversations I’ve had with victims to try and convince them that no, you are not in a relationship with a celeberty.
4. Recovery scams
After someone realizes they’ve been defrauded, scammers pose as investigators or “asset recovery specialists” who claim they can get the money back for a fee. While there are asset recovery organizations such as Rexxfield who have staffing for investigating fraud, many social media providers that claim to investigate fraud are just that: frauds. If someone comments in the posts that they can help, it’s more than likely a scam to prey on you.
Why Smart, Capable People Fall for Bitcoin Scams
I hear “I can’t believe I fell for it, I should’ve known better” with every single victim I’ve worked with. The truth is, bitcoin scams aren’t about intelligence. They’re about emotion, pressure, and the nervous system. Scammers use urgency, fear, and manufactured trust to push people into a reactive state where logic temporarily shuts down.
Common triggers include:
Financial stress (“I finally found something that could help me get ahead.”)
Loneliness (“Someone finally understands me.”)
Fear (“Your account will be frozen if you don’t act now.”)
Hope (“This could change my life.”)
When your body goes into protection mode, it’s easy to click, send, or move money before your brain catches up.
The Playbook Scammers Use
Across thousands of cases, the script barely changes:
They hook you emotionally
Through kindness, urgency, authority, or flattery.They isolate you
“Don’t tell anyone—they won’t understand.”They create fake validation
Screenshots, dashboards, fake profits, fake support staff.They escalate the investment
“Just a little more and you can withdraw.”They hit you with a final fee or tax
The last squeeze before they disappear.They cut contact
Or pass your information to other criminals.
Once you know the steps, you see them everywhere.
What to Do If You Think You’re Being Scammed
You don’t need technical expertise. You just need a few grounding steps:
1. Stop sending money
This sounds obvious, but scammers push hard to keep you moving. Stopping breaks the cycle and BLOCK THEM. When they try to contact you again, BLOCK THEM AGAIN. Scammers will come back weeks and months later if they still believe they can extract money from you.
2. Talk to someone you trust
A second opinion interrupts emotional pressure. You’d be surprised how fast clarity returns when someone confirms those gut feelings of “I don’t know if I should be doing this, what do you think?”
3. Save every screenshot, wallet address, and message
This helps investigators, banks, and platforms track the case. You are NOT the only victim, and scammers engage with others in every single case. By saving your notes, you can help save 10, 15, or 100 other victims.
4. Report the scam
While recovery is rare, reporting helps disrupt networks and protect others. I don’t want to tip our hands to everything that we as researchers can do, but we can really put the hurt on scammers.
5. Regulate your nervous system
Your body is in a high-alert state. A few deep breaths, grounding exercises, or a moment away from the screen can help bring logic back online. (This is a major theme I teach through Anti-Scam Education.)
If You’ve Already Lost Money
You are not alone, and you are not foolish.
Victims often describe feeling embarrassed, angry, heartbroken, or ashamed. These reactions are normal. Scammers create emotional manipulation as precisely as they build their fake platforms.
A few truths I want every victim to know:
You were targeted because you’re human, not because you’re weak.
Your nervous system did exactly what it’s designed to do under threat.
Recovery of funds is uncommon, but recovery of yourself is absolutely possible.
Talking about it is the first step out of the fog.
How to Stay Safe Going Forward
A few simple principles go a long way:
No legitimate investment requires crypto payments.
No legitimate person online guarantees returns.
Do not mix relationships and investing. Ever.
If someone pressures you to keep a secret, it’s a scam.
Slow is safe. Fast is dangerous.
Education is the most reliable defense we have. Not fear, not shame—knowledge.
Final Thoughts
Bitcoin and other cryptocurrencies aren’t inherently dangerous. What is dangerous is the way criminals weaponize trust, emotion, and urgency to manipulate people into decisions that don’t reflect who they truly are.
The more we talk about these scams openly—and without judgment—the harder it becomes for criminals to succeed.
If you or someone you know is struggling with a crypto scam, emotional fallout, or the stress that comes with it, Anti-Scam Education offers tools, resources, and practical guidance to help you navigate the process.
Knowledge protects people. Connection helps them heal. And awareness keeps others safe.
