Last reviewed: 2026-06-12. This guide is for education and risk awareness only. If you already sent money or crypto, preserve evidence and contact 165, police, your bank, or official exchange support as quickly as possible.
Short Answer: Most Crypto Scams Control the Process, Not the Blockchain
Many crypto scams do not hack your wallet. They persuade you to transfer funds voluntarily. The scammer builds trust, creates urgency, then demands more money for withdrawal, tax, verification, account unfreezing, or a guarantee deposit. FTC, CFTC, SEC, and Taiwan 165 all warn that social media, dating apps, investment groups, and fake platforms are common attack surfaces.
Remember one rule: if a platform asks for more money before allowing withdrawal, treat it as high risk.
7 Common Crypto Scam Scenarios
| Scenario | Common Script | Red Flag | What to Do |
|---|---|---|---|
| Fake exchange | Download this app or use this private URL | Domain looks unofficial, support only through private chat | Stop deposits and verify official domains |
| Investment group | Mentor signals, assistant reminders, guaranteed profits | Profit screenshots everywhere, no open discussion | Do not hand over accounts or send to their address |
| Romance investment scam | Online partner teaches crypto investing | Relationship pressure plus investment advice | Treat as a scam pattern and check FTC/CFTC warnings |
| Withdrawal tax trap | Pay tax, guarantee, or verification fee first | No payment, no withdrawal | Do not add funds; preserve evidence |
| Fake support | Account abnormal, provide seed phrase | Remote control, private keys, codes requested | Official support will not ask for seed phrases |
| Recovery scam | 100% recovery for wrong-chain funds | Upfront fee or wallet signature required | Use only the receiving platform's official process |
| AI trading bot | Daily fixed yield, zero risk | No strategy details, only dashboard numbers | Verify company, cash flow, and withdrawal ability |
12 Red Flags
- Guaranteed profit, principal protection, insider information, or risk-free returns.
- The platform can only be downloaded from a link sent by the other person.
- Support exists only in LINE, Telegram, WhatsApp, or private accounts.
- You cannot freely deposit or withdraw through your own bank or exchange.
- You are told to buy USDT and send it to a specific address.
- Withdrawal requires tax, verification, unfreezing, guarantee, or credit-score payments.
- The dashboard shows large profits but actual withdrawal fails.
- The person pushes a deadline, quota, or limited opportunity.
- You are asked to install an APK, configuration profile, remote-control tool, or unknown app.
- They request seed phrases, private keys, exchange passwords, or 2FA backup codes.
- The website lacks company information, compliance details, public fees, support center, or risk disclosures.
- When questioned, the person pressures you not to ask family, banks, or official channels.
How to Verify an Exchange
Do not judge only by web design. Use a verification workflow:
- Cross-check the official domain through search engines, official social channels, App Store, or Google Play.
- Look for strange spelling, short URLs, recently registered domains, and brand impersonation.
- Check whether the platform publishes fees, terms, risk disclosures, company information, and support channels.
- For Taiwan local operators, check FSC VASP-related announcements and public information.
- Test a small withdrawal to an account or wallet you control, not just the dashboard balance.
- If someone tells you to keep it secret or not ask your bank or family, escalate the risk level.
Legitimate platforms may require KYC and account reviews, but they do not ask you in private chat to transfer funds to a support address to unfreeze withdrawals.
Withdrawal Tax Traps
Scam platforms often say you made a profit but must pay tax before withdrawal. Separate two concepts:
- Real tax compliance: you report income under applicable tax rules and deal with tax authorities or professionals.
- Scam script: the platform demands USDT, a guarantee deposit, credit score payment, or verification fee before withdrawal.
If a platform blocks withdrawal until you send more money, stop paying. Save the platform page, chat logs, wallet address, TxID, bank records, and submitted identity documents.
Tax guide: Taiwan crypto tax guide.
First 30 Minutes After Sending Funds
- Stop sending more money, even if the person claims one more transfer fixes it.
- Screenshot all chats, platform pages, URLs, support names, group members, and payment requests.
- Save TxIDs, receiving addresses, token, network, amount, date, and time.
- If bank transfer or card payment was involved, contact your bank immediately.
- If crypto was withdrawn from an exchange, contact official exchange support with TxID and address.
- Contact 165 or police reporting channels and prepare evidence.
- Change exchange, email, and social account passwords, reset 2FA, and check for remote-control software.
Related guide: First 30 minutes after a suspected crypto scam.
Evidence Checklist
Organize a folder with:
- Counterparty account, nickname, phone, email, and social profile.
- Chat screenshots with timestamps and context.
- Platform URL, login page, account dashboard, support page.
- Bank transfer records, withdrawal records, exchange withdrawal history.
- Wallet addresses, TxIDs, token, network, and amount.
- Any tax, guarantee, unfreezing, or verification payment demand.
- Police report number, bank case number, and exchange support ticket.
Complete evidence helps banks, exchanges, police, or investigators trace funds, but blockchain transactions are generally irreversible.
Avoid Recovery Scams
After a scam, another scammer may pretend to be a lawyer, hacker, exchange employee, police officer, or recovery company. They may promise 100% recovery and ask for upfront payment, seed phrases, wallet signatures, or remote access.
Use these rules:
- No one can guarantee recovery of on-chain funds.
- Never provide seed phrases, private keys, 2FA, or exchange passwords.
- Do not allow strangers to remotely control your phone or computer.
- Do not sign wallet transactions you do not understand.
- Use official support, 165, police, banks, and licensed professionals.
Related guide: Crypto recovery scam warning.
Official Sources
- Taiwan 165 Anti-Fraud
- Taiwan FSC MoneyWise anti-fraud resources
- FTC: What to know about cryptocurrency scams
- FTC: Online love interest teaching investing is a scam warning
- CFTC: Relationship investment scam
- CFTC: Digital asset frauds
- SEC: Social media investment fraud alert
FAQ
Q: The dashboard shows real profits. Can it still be fake?
A: Yes. A fake platform can display any number. The real test is whether you can withdraw a small amount to an account or wallet you control.
Q: Is paying tax before withdrawal always a scam?
A: Tax compliance should be handled through tax authorities or professionals, not by sending USDT to a private support address. A platform demanding payment before withdrawal is high risk.
Q: Can an exchange recover USDT I already sent?
A: Not guaranteed. Provide TxID and address to the sending exchange and police, but on-chain transfers are usually irreversible.
Q: A hacker says they can recover my assets. Should I pay?
A: Be extremely cautious. Guaranteed recovery, upfront fees, seed phrase requests, or wallet signatures are common recovery-scam signals.
Language: 繁體中文版本
Sources and Risk Notice
This article is educational only and does not provide financial, legal, or tax advice. Exchange rules, fees, campaigns, and regulations can change; verify official sources before acting.