Investment & Crypto Scam Defense Guide
Verify brokers and crypto platforms, recognize pig butchering and recovery scams, and report investment fraud to the SEC and FBI.
Last updated: 2026-07-02
Why investment scams dominate US fraud losses
Investment and cryptocurrency fraud consistently ranks among the highest-loss categories in FTC Consumer Sentinel data. Victims often lose tens or hundreds of thousands of dollars.
Scammers combine fake trading platforms, romance manipulation (pig butchering), and impersonation of regulators to appear legitimate.
Verify before you invest
Check SEC registration at Investor.gov. Search the SEC PAUSE list for unregistered soliciting entities. Be skeptical of guaranteed returns and pressure to act fast.
- •Promised returns above market norms
- •Platform only accessible via mobile app or obscure URL
- •Withdrawal blocked until you pay "taxes" or "fees"
- •Advisor met you on dating or social apps
Frequently asked questions
- Is crypto always a scam?
- No, but unregistered platforms promising guaranteed returns are a major fraud vector. Verify registration and use established US exchanges.
Related resources
Cluster guides in this silo
How to Verify SEC Registration
Use Investor.gov and the SEC PAUSE list before sending money to any broker or investment platform.
Pig Butchering Scams — Red Flags
Romance-linked investment fraud: how scammers build trust before draining savings.
Fake Trading Platforms — Warning Signs
Identify fraudulent forex, crypto, and options platforms before you deposit.
Recovery Scam Trap — Second Fraud Wave
After losing money, victims are targeted by fake recovery firms demanding upfront fees.
Crypto Rug Pulls and Token Scams
How developers drain liquidity and leave investors with worthless tokens.