Dealing with virtual currency scams
Last updated: 29/07/2026
This Guide is designed to support individuals who have become a victim of a virtual currency scam. The Guide includes what practical steps you can take to limit the damage, how to preserve evidence, look after your well-being and where you can get specialist support and report the crime in the UK.
What is a virtual currency scam?
The growing popularity in digital currencies (cryptocurrencies) has resulted in a greater number of people wanting to invest in this form of digital currency.
Unfortunately, cyber criminals have taken advantage of this opportunity by scamming victims into sending money to an investment that will never materialise. Scammers use fake investment opportunities, impersonation, hacking, or manipulation to steal money or cryptocurrency from victims.
A virtual currency scam is a fraud involving digital currencies such as Bitcoin, Ethereum, stablecoins, or other crypto assets and include:
Fake Investment Websites – These sites aim to promote a “get rich quick” scheme whereby a user deposits fiat (currency is a government-issued money that is not backed by a physical commodity like gold or silver) money or cryptocurrency into a user account or wallet with the hope of receiving a large return. However, once the funds have been transferred, victims may find that they are unable to withdraw any of their fiat or crypto inside of that account. Scammers take advantage of this further and may demand further payment in order to be able to ‘unlock’ the funds, or disappear altogether.
‘Pump and Dump’ Schemes – This scheme works by scammers misleading victims to invest into a particular cryptocurrency (hence ‘pumping’ up its value). Once the price of that cryptocurrency goes up due to increased demand, scammers ‘dump’ and sell off what cryptocurrency they have to rake in large profits. Victims find that the value of their cryptocurrency falls sharply and in return lose money.
Fake ICO’s (Initial Coin Offering) – When a start-up or company wishes to raise funds, it may launch an ICO and entice investors to invest a certain amount of bitcoin (or other forms of cryptocurrency) to purchase the company’s newly introduced coin. A fake ICO involves a scammer enticing victims to invest in a coin that does not, and never has, existed.
Crypto Giveaway Scams – This type of scam is prominent on social media platforms. Scammers would hack or impersonate legitimate accounts (usually celebrities and high-profile figures) and pretend to be giving away crypto. Victims are asked to send a certain amount of crypto to the scammer, for which they receive double the amount that they initially put in.
Pig Butchering Scams - A form of romance fraud where a scammer builds an online relationship over weeks or months, using a fake profile (also known as catfishing), then encourages the victim to invest in cryptocurrency through a fraudulent platform.
Phishing and support scams - Victims receive fake emails or messages pretending to come from exchanges or wallet providers. The fraudster will ask for passwords or recovery phrases to obtain access to the wallet and withdraw funds, which can then not be recovered.
If your virtual currency has actually been hacked from your wallet then visit our Hacked Virtual Currency Guide.
Being targeted by this kind of scam can leave you feeling embarrassed, anxious, or worried about your finances, but it is never your fault and you are not to blame for someone else’s criminal behaviour.
In the UK, virtual currency scams may be investigated under fraud laws such as the Fraud Act 2006, which makes it a crime to dishonestly make a gain or cause a loss through false representation.
We want to better understand the impact of you experiencing this issue, can you share your experience by filling in this online form? This will help us better protect future victims.
How do you know if you have been a victim of a virtual currency scam?
You are not able to withdraw funds from your crypto wallet.
You are no longer able to access the crypto wallet platform.
You are being asked for the password or passphrase of your cryptowallet.
Approaches to dealing with a crypto scam
Don’t send any further fiat money or crypto – Fiat money is traditional government-issued money. If you have any suspicions that you might have been scammed, don’t send any more money or crypto. Trust your instinct.
If you have paid money or provided card/bank details - contact your bank immediately and explain what has happened. Ask your bank to review recent transactions, consider freezing or changing your account details if needed, and follow any fraud or chargeback process they recommend. You can find more information in our recovering money from cyber scams guide.
Contact the exchanges - It is possible to track down the scammer’s identity, which can help to lead to his/her arrest. You can share the scammer’s wallet address and any transaction details with the police and, if requested, with the relevant exchange, so that they can review activity and take any appropriate action.This is why it is important for you to file a police report as soon as the incident has taken place.
Document evidence - If you are unsure what to do next, try to write down a timeline of what happened (dates, amounts, websites, usernames, wallet addresses) and keep this somewhere safe to share with the police, your bank, or support services. Save all wallet addresses, screenshots and transaction hashes.You can find more information on preserving evidence.
Will you get your money back?
Cryptocurrencies are globally traded and are very lightly regulated in the UK. They do not have the same level of protection as other financial products (for instance a debit or credit card). From a technical point of view, crypto transactions are irreversible and therefore it is very unlikely that you will be able to recover your money. Transactions are decentralised and often hard to trace across jurisdictions, especially as scammers often move funds rapidly through multiple wallets and exchanges.
In some cases, banks or card providers may be able to help you recover part of your loss, especially if you acted quickly, so it is still worth contacting them and following their fraud procedures even if recovery is not guaranteed.
Report the crime
If you feel in immediate danger or someone is threatening you, call the police on 999; for non-emergencies you can call 101 or report online via the police website.
If you are in England, Wales or Northern Ireland you should report all fraud to Report Fraud on 0300 123 2040 or via their website https://www.reportfraud.police.uk/ who can provide a crime reference number and investigate what has happened. In Scotland, you can see details of reporting to Police Scotland.
Report the scam to the Financial Conduct Authority (FCA) – they will try to stop the scam and warn others before they fall victim. You can report suspected virtual currency scams via the FCA website at https://www.fca.org.uk/ or via their consumer helpline on 0800 111 6768.
How to avoid being a victim of a virtual currency scam
Avoid unsolicited attempts to get you to invest – You may get contacted via social media, email or a cold call about an investment opportunity. These methods are commonly used by criminals in a scam.
Use a crypto exchange with an established reputation - create a new account with a well-established exchange like Kraken or Coinbase.
Do your research – Like with any other important decision, it’s best to do your research. Research the cryptocurrency, the company, the individuals involved, but more importantly, whether they are associated with any scams.
Never rush your decisions – If you feel you’re being rushed into making an investment e.g., a limited time offer – distance yourself and do your research until you are confident.
Too good to be true? – If it sounds too good to be true – it probably is. Any sort of investment requires some degree of risk and those that claim to give you guaranteed returns are the riskiest of them all.
Withdrawing funds - ensure there is a transparent and unrestricted way to access the funds held in a wallet
Communication - if you are being asked to communicate only through messaging apps rather than a formal email account or a company app, ensure you conduct additional research to assess the validity of the organisation.
Wallet security - stop all communication if someone asks for your recovery phrase/private key. Ensure you do not write your password down and that it is stored securely. If you suspect your wallet has been compromised, create a new wallet and passphrase and move funds to the new wallet immediately.
Check with the Financial Conduct Authority (FCA) - In the UK, a new regime for regulating cryptoassets is being implemented by the FCA. Full implementation is expected by the end of October 2027. You can find more information about this process here: https://www.fca.org.uk/firms/new-regime-cryptoasset-regulation
The FCA will require all cryptoasset firms to be authorised and will likely add them to the Financial Services Register on the FCA website. This is a public website where you can see if a company is registered and also check that it is allowed to offer the product or service they are selling to you.
Influencers - be cautious of adverts or messages that use the names or images of celebrities, influencers, or well-known companies, as these are often fake or used without permission to make a scam look more convincing. Conducting further research should reveal if an endorsement is valid or not, either on the celebrity’s own website, news articles, the endorsed company, online reviews, or linking the company name to the “scam” or “fraud” in a web search.
Some offenders may use AI-generated content, such as deepfake images, videos, or cloned voices, to impersonate people or create convincing false material. This can make scams, harassment, or blackmail feel more realistic and harder to identify. If something feels unusual or out of character, try to verify it through a trusted, separate method before taking action or responding.
Additional signposting
Keeping your security and privacy strong online will go a long way to protect you and your information. The National Cyber Security Centre has advice on how to stay secure online.
The National Cyber Security Centre has a suspicious email reporting service – all you have to do is forward suspicious emails to report@phishing.gov.uk .
You can contact Victim Support (https://www.victimsupport.org.uk/ or 08 08 16 89 111) for free, confidential emotional and practical support after fraud or online crime, whether or not you have reported to the police.
If you are under 18, you can speak to Childline on 0800 1111 or via online chat at https://www.childline.org.uk/ if you are worried about money, scams, or pressure to invest in cryptocurrency.
Consider telling a trusted friend or family member what has happened, if it feels safe to do so, so they can support you and help you keep an eye on your accounts and devices.
If you’re struggling with money, you can get guidance on dealing with debt from MoneyHelper
Donate
Your generosity makes our free support possible. Please consider giving today.
As a not-for-profit, every donation goes straight toward keeping our service free for individuals who were targeted online — donate now and help us reach more people affected by hacking, scams and online abuse.