How to report a crypto scam: Key agencies and steps to take

Key takeaways

• Contacting authorities for crypto fraud including the United States CTFC, SEC and FTC is critical for eliminating scams and potentially recovering your funds.
• Protecting yourself from crypto scams requires that you understand how to spot common fraud tactics like unsolicited offers, phishing attacks, Ponzi schemes and fake ICOs
• Reporting fraud in cryptocurrency investments will require the inclusion of scam details, dates and times, communication methods, public wallet addresses and financial transactions.
• During the investigations, authorities might partner with blockchain analysis companies and international agencies for cryptocurrency scams.

Do you ever feel like you’re about to step on a landmine at every turn in the crypto world? It can be hard to tell a legitimate investment apart from the next big scam. Fortunately, regulators and law enforcement are cracking down on the industry, with a particular focus on helping protect consumers.

This crypto scam report guide gives you essential crypto scam reporting tips and a step-by-step guide to handle crypto fraud and help law-enforcement agencies catch fraudsters and recover stolen funds. 

Recognizing fraudulent crypto activity

In the process of reporting cryptocurrency scams, you first need to be able to spot fraudulent activities. It’ll help protect you against being deceived while also enabling you to share suspicious behavior with the relevant authorities.  

Here are the telltale signs of common crypto scams to report: 

• Unsolicited investment offers are one of the most common scams. You might be presented with an ad on social media or receive a direct message. The uninvited approaches often promise high returns with little risk. Almost 50% of people who report crypto scams say it starts with an ad, post or message on social media platforms.
• Phishing attacks are prevalent in financial scams. According to Chainalysis, approval phishing scams stole more than $375 million in 2023. Criminals attempt to mimic legitimate crypto organizations. They can be convincing in using similar branding and professional designs. Phishing scams aim to steal your login credentials and sensitive information or sign fake crypto transactions on a spoof website. 
• Ponzi schemes have been around for a century and account for some of the largest financial scams in history. This includes the crypto industry. The infamous BitConnect Ponzi scheme defrauded over $2 billion from investors! Funds are not invested. Instead, profits are made from new investors rather than legitimate business operations.
• Fake initial coin offerings (ICO) have risen as a unique type of fraud in the crypto world. It involves projects gaining investment for their company by selling crypto tokens with the promise to build the platform or technology on the back of the investment — except many never intend to develop anything and simply disappear with the money. 

Did you know? Research from the Satis Group, an ICO advisory company, conducted research that showed 80% of ICOs with a market cap of over $50 million turned out to be scams. 

Key agencies for crypto scam reporting

If you think you’ve identified a crypto scam or have fallen victim to one, there are a number of government agencies for crypto scam reports you can contact. 

Where to report crypto fraud: 

• Commodity Futures Trading Commission (CTFC): The CTFC regulates the US commodities and derivatives markets, including digital assets. They operate a whistleblower reward plan where you can report information on fraud. 
• Securities and Exchange Commission (SEC): The SEC regulates securities markets and aims to protect investors, including those in crypto. Its Crypto Assets and Cyber unit enforces reports against unregistered and fraudulent crypto operations.
• Federal Trade Commission (FTC): The FTC has been protecting US consumers against deceptive business practices for more than 100 years. This includes crypto investments, which can be reported and investigated by the FTC.
• Internet Crime Complaint Center (IC3): Run by the FBI, the IC3 works as a central hub for cyber-enabled crime. It allows the FBI to investigate crime reports, track threats and even freeze funds.

How to file a cryptocurrency scam report

Reporting crypto scams to authorities through a detailed and accurate process increases the chances of successful investigations. Although not guaranteed, using the correct steps to report cryptocurrency scams might help recover lost funds. 

Knowing the crypto scam reporting process and how to file a crypto fraud report can help authorities build a strong case to catch scammers. 

Here’s how to report a crypto scam:

1. Collect evidence: Gather all the relevant information about fraudulent behavior. This should include communications, transaction records, screenshots, advertising claims and website links.
2. Visit the agency's website: Use the crypto scam hotline and online reporting on the FTC, IC3, SEC or CTFC websites. You can also contact any relevant crypto exchange platforms that the scammers are using. For example, Coinbase allows you to report potential scams and fraud on its platform. 
3. Provide detailed information: In your report, include how you came across the scam, dates and times, communication methods, public wallet addresses and any financial transactions. In addition, provide anything that might help identify the fraudsters, such as contact details and names. 
4. Follow-up: Don’t expect updates, as investigations are generally kept confidential. If you want to keep track of your report, be sure to follow up to ensure action is being taken.

Did you know? The biggest heist in crypto history was the 2016 Bitfinex hack, where 120,000 BTC were stolen. The value of the stolen Bitcoin is now more than $8 billion in 2024. 

Protecting yourself when reporting a crypto scam

If you’re nervous about reporting a crypto scam, then it is important to protect yourself from any repercussions during investigations. Official agencies should provide you with anonymity for the report and during the case. It is imperative to use secure channels and make complaints through the official websites. 

Only provide necessary details and avoid sharing your personal information unless specifically requested. You can use a lawyer to file reports on your behalf if you want to protect your identity. If you’ve been the victim of a scam, pay close attention to your accounts for any suspicious transactions. You should contact your bank and double-check the security of your crypto wallets.

This proactive approach will help to safeguard you from additional harm, protect your finances and contribute vital information to the authorities.

Did you know? The true number of losses from crypto scams is unknown due to unreported cases, but in 2023, $5.6 billion was reported as stolen in the US.

How law enforcement handles crypto scam reports

Law enforcement agencies and regulators should confirm receipt of your report and look into its validity. If the investigation proceeds, they will look at the details of the scam and even collaborate with other agencies and institutions. 

Uncovering cryptocurrency scams often requires blockchain analysis. The transparent design of blockchains allows investigators to track funds and wallet addresses while also highlighting suspicious trading activities. 

Investigators might partner with companies like Chainalysis, which famously helped recover more than $1 billion from the fall of the Silk Road dark web marketplace. 

If successful, legal action will be pursued against the alleged scammers and crypto recovery efforts will take place.