BBB Cryptocurrency Scams: 3 Common Schemes and How to Avoid Them

The Rise of Cryptocurrency Scams: Why the BBB Is Sounding the Alarm

Cryptocurrency scams are surging, and the Better Business Bureau (BBB) has flagged them as a growing threat to consumers. With the rise of decentralized finance (DeFi), NFTs, and speculative trading, scammers are exploiting the hype to trick victims into losing money. The BBB’s Scam Tracker and consumer alerts highlight how fraudsters use fake platforms, phishing tactics, and too-good-to-be-true promises to steal crypto assets. In this article, we’ll break down three common BBB-reported cryptocurrency scams and share actionable tips to stay safe.

3 Cryptocurrency Scams the BBB Warns About

1. Fake Crypto Exchanges and Investment Platforms

Scammers create fraudulent websites or apps that mimic legitimate exchanges like Coinbase or Binance. These platforms often promise:

• “Guaranteed” high returns with zero risk
• Exclusive access to “new” cryptocurrencies
• Pressure to act quickly with limited-time offers

Red Flags: Poor website design, lack of customer support, and requests for upfront fees.

2. Phishing and Social Engineering Attacks

Fraudsters impersonate trusted entities (e.g., wallet providers, crypto influencers) via email, SMS, or social media. Tactics include:

• Fake security alerts urging you to “verify” your wallet credentials
• Imposter giveaways requiring a small deposit to claim rewards
• Fraudulent tech support offering to “fix” non-existent issues

Red Flags: Unsolicited messages, misspelled URLs, and demands for private keys.

3. Ponzi Schemes Disguised as Crypto Projects

Scammers promote fake investment pools or “staking” programs that pay early investors with funds from new victims. These schemes often collapse once recruitment slows. The BBB notes warning signs like:

• Overly complex explanations of returns
• Requests to recruit friends/family for bonuses
• Delays or excuses when withdrawing funds

How the BBB Helps Combat Cryptocurrency Scams

The BBB tracks scam reports, issues alerts, and educates consumers through resources like:

• Scam Tracker: A database of real-time scam reports
• Business Profiles: Verify the legitimacy of crypto companies
• Consumer Education: Guides on spotting red flags

7 Tips to Avoid Cryptocurrency Scams (BBB-Approved)

1. Research companies on BBB.org before investing.
2. Never share private keys or recovery phrases.
3. Use hardware wallets for large crypto holdings.
4. Ignore unsolicited investment offers.
5. Verify URLs and social media accounts carefully.
6. Be skeptical of “risk-free” crypto opportunities.
7. Report scams to the BBB and FTC immediately.

FAQ: BBB Cryptocurrency Scams

Q: How does the BBB handle crypto scam reports?
A: The BBB logs reports into its Scam Tracker, shares data with law enforcement, and publishes alerts to warn others.

Q: Can the BBB recover my stolen cryptocurrency?
A: No, but reporting helps track scam patterns. Contact your bank, wallet provider, and local authorities for recovery steps.

Q: Are all crypto platforms BBB-accredited?
A: No. Check a company’s BBB profile for accreditation status and reviews before trusting them with your funds.