Only scammers demand payment in cryptocurrency, says the FTC. Crypto payments generally lack the dispute protections of cards and are typically irreversible. Promises of guaranteed profit, a romantic contact giving investment tips, or a threat to release material unless you pay are all warning signs.
Why crypto is attractive to scammers
The FTC explains that crypto is digital money you can buy through exchanges, apps, websites or crypto ATMs and keep in digital wallets. If a wallet is lost or stolen, or funds go to the wrong person, recovery is often not possible. Unlike dollars in an insured bank account, crypto is not backed by a government and its value can swing sharply.
Payments generally lack the dispute rights that credit and debit cards offer. You usually get money back only if the recipient sends it back.
Common scam types
- Investment scams. Fake "investment managers" or celebrity impersonators ask you to buy crypto and send it to them. Withdrawals are then blocked or come with high fees.
- Impersonation scams. Someone poses as a company, agency, utility or employer, often claiming fraud or unpaid debts. Fake coins and crypto job offers, sometimes involving fake checks, also appear.
- Romance and investment mixes. The FTC says a romantic contact who gives investment advice or asks for crypto is a scam. See romance scam signs.
- Blackmail. Threats to release compromising material unless you pay. The FTC advises not paying and reporting to the FBI. If a teen is targeted, see these first steps.
Rules for the household
- Nobody pays in crypto because someone asked them to.
- Guaranteed returns do not exist.
- Before sending anything, tell another family member.
- Teens who trade or game with digital currency should agree the limits with a parent.
Where to report
The FTC lists ReportFraud.ftc.gov, the CFTC at CFTC.gov/complaint, the SEC at sec.gov/tcr, the FBI's IC3 at ic3.gov, and the crypto exchange used to send the money. Report fast, even if you are unsure.
What it means for kids
A teenager who sees a post about quick returns may not understand that transactions cannot be reversed. Explain it plainly: unlike a card payment, there is usually no "dispute" button. Talk about why a stranger who insists on crypto deserves suspicion.
Quick check
Can I dispute a crypto payment like a card payment?
The FTC says crypto payments generally lack card dispute protections and are typically irreversible.
A stranger offers a guaranteed return if I send crypto. Is that normal?
No. The FTC lists promises of guaranteed profits or quick, easy returns as a warning sign.
Sources
Last reviewed: 19 October 2026.
