A stranger offers to manage your crypto. Is it real?

The problem

A message arrives from someone you do not know. It might come on social media, a messaging app or a dating site, or it might be a call from a so-called investment manager. They say they have made large profits in cryptocurrency and offer a special deal with strong returns and little or no risk.

They send a link to a website or app where you can invest and watch your account grow. The first small amount may even appear to grow and may be paid out. Then they encourage you to add more.

How it can happen

The FTC describes how this ends. The site looks real but is fake. Once the scammers have taken as much money as they can, they close the account and disappear, or they block withdrawals and demand high fees to release your money.

The FTC's cryptocurrency guidance lists related versions. A fake investment manager contacts you and points you to a convincing but fraudulent site. A person posing as a celebrity claims they can multiply any crypto you send. A new online contact asks you to send money or crypto, or offers to help you invest. Another version pretends to be a bank or agency, claims fraud or a frozen account, and tells you to buy crypto to protect your money.

Crypto adds a risk of its own. The FTC says crypto payments generally lack the legal protections that credit and debit cards offer, such as dispute processes, and payments are typically irreversible unless the recipient returns them.

How to avoid it

1. Do not reply to unexpected investment messages. The FTC says unexpected messages on social media about investment opportunities almost always lead to scams.
2. Treat guarantees as a warning. All investments carry risk. Be sceptical of anyone promising high returns with little or no risk.
3. Do not pay with crypto, wire or gift cards on someone's instruction. The FTC says anyone demanding crypto payment, especially in advance, is a red flag.
4. Search first. Look up the company, its officials and promoters with words such as review, scam or complaint.
5. Check registration. The FTC points to Investor.gov, the SEC's EDGAR database and your state securities regulator for checking people and products.
6. Slow down. Do not commit money under time pressure, and talk to someone you trust. Be wary of anyone who discourages you from researching.
7. Do not click links or call numbers from unexpected messages or pop-ups.

If you have already sent money, contact the exchange or payment company you used at once and say that the transaction was fraudulent. Report at ReportFraud.ftc.gov, with the SEC at sec.gov/tcr, with the CFTC at cftc.gov/complaint for commodities, and with the FBI's IC3 at ic3.gov. The FTC adds that if someone uses blackmail, you should report it to the FBI immediately.

A common beginning for this scam is a friendly chat that seems accidental. See the wrong number text and romance scams for those versions. If a caller pushes you towards a crypto machine, the Bitcoin ATM article explains why that is a sign of fraud.

Things to watch

• A contact you did not seek, who is eager to help with your money.
• Promises of guaranteed profits or zero risk.
• A website or app that shows growth but will not let you withdraw.
• A new fee needed to release funds.
• Requests to send crypto to a wallet or ATM.
• Pressure that a chance will pass.
• Few details and no written documents.

Real financial professionals can be checked and do not need secrecy or speed. A short pause, and a search with the words review and scam, will settle most cases.