Those numbers on the screen do not necessarily represent real investments. The FBI warns that the platform itself may be controlled by the criminals, meaning reported balances, gains and transaction histories can be fabricated while the victim's actual cryptocurrency has already been transferred into wallets controlled by the fraud network.
Fake sites may include customer-service portals, two-factor authentication and designs that resemble legitimate financial platforms. Some use web addresses that differ only slightly from authentic investment or cryptocurrency companies, making them difficult to recognize as fraudulent without independent verification.
Scammers May Even Allow an Early Withdrawal
Seeing a profit on a screen is one thing. Successfully withdrawing money can be far more persuasive, and federal investigators say criminals understand that.
The FBI warns that victims are sometimes permitted to withdraw part of their initial investment, including supposed profits, early in the scheme. That small successful withdrawal is deliberately used to convince the victim that the platform works and that larger amounts can safely be deposited.
After that, fake returns can become increasingly lucrative on the screen. The scammer may point to those gains as proof that the investment strategy is working and encourage the victim to increase the amount committed to the platform.
Other tactics include offering supposed matching funds, presenting time-sensitive investment opportunities or suggesting that a larger account balance is necessary to qualify for more profitable trades. By the time a victim tries to remove a substantial portion of the money, the amounts sent can be dramatically larger than the initial investment.
Crypto Investment Fraud Produced More Than $7 Billion in Reported Losses Last Year
For the Sun City Hilton Head victim, the reported loss ultimately exceeded $800,000. The Hilton Head loss is large for one person, but it sits inside a fraud category generating billions of dollars in reported losses nationwide.
The FBI said cryptocurrency investment fraud accounted for more than $7.2 billion in reported losses during 2025, up approximately 24% from the prior year. Investment fraud overall remained one of the largest financial-crime categories reported to the Internet Crime Complaint Center.
Confidence and romance fraud also remains a major category in its own right. IC3 recorded approximately $929 million in reported Confidence/Romance losses during 2025. Victims may never report what happened, particularly after a long relationship in which they believed they knew the person who took their money.
The FBI Is Finding Victims Who Still Believe Their Investments Are Real
The scale of the deception became particularly clear through the FBI's Operation Level Up, an initiative created to identify people actively sending money into cryptocurrency investment schemes and warn them before additional losses occur.
As of March 2026, federal officials said the operation had notified 8,935 suspected victims. Remarkably, 77% were unaware they were being scammed when the FBI contacted them.
The bureau estimated that those interventions prevented approximately $562.7 million that victims otherwise might have sent to criminals. Some people had already begun liquidating retirement accounts, considering the sale of their homes or preparing to borrow substantial amounts before agents reached them.
Victims Can Be Targeted Again by Fake Recovery Services
The FBI warns that cryptocurrency investment victims are frequently contacted by people claiming to be lawyers, investigators, law-enforcement representatives or recovery companies that promise to retrieve stolen cryptocurrency for an upfront payment.
Some recovery scammers may already know detailed information about the original loss. That can make the approach appear credible, particularly if the victim is desperate to recover retirement savings or other large amounts.
The FBI says legitimate agents will not ask a cryptocurrency fraud victim to pay money, move the conversation onto a private messaging app or provide bank-account information as a condition of receiving government assistance.
Anyone promising guaranteed recovery in exchange for a fee should therefore be treated with extreme caution. Paying a second scammer can turn one major financial loss into another.
Do Not Take Investment Advice From an Online Love Interest
The Federal Trade Commission warns that someone met online who offers to teach a person how to invest in cryptocurrency should be treated as an investment scammer. Before sending money, independently investigate the investment rather than relying on screenshots, testimonials, account balances or links supplied by the person recommending it.
A reverse-image search of profile photographs can also reveal that pictures belong to someone else or have appeared under different names. Refusal or repeated inability to meet in person, pressure to move conversations away from the original dating or social platform, guaranteed investment returns and claims that cryptocurrency trading carries little or no risk are additional warnings.
Anyone who has already transferred cryptocurrency and suspects fraud should stop sending more money immediately. The FBI asks victims to report the scheme through IC3.gov and provide as much transaction information as possible, including wallet addresses, cryptocurrency type and amount, dates, transaction hashes, websites, applications and communications with the scammer.
