What are financial scams?
Financial scams are deceptive schemes designed to trick you into giving away your money.
Scams can have a serious impact — for example, Americans reported over $10 billion in losses to scams in 2023 alone.
You can read real-life stories from people affected by scams and get support through the Federal Trade Commission’s (FTC) scam resources. If you believe you've been involved in a scam, you can also report it to the FTC or contact CoinJar Support for further assistance.
Before you send your money anywhere, whether it be to someone else, an investment, or a company, either local or international, remember:
Why are scams dangerous?
Scams can ruin your life
Being tricked by a financial scam can have serious and lasting effects.
You will lose the money you sent, which may have been a significant amount. Your money is impossible to recover because scammers use complex methods to cover their tracks, and there are many challenges involved in tracking your money down.
Beyond the immediate loss of money, the emotional impact can be harsh. It can lead to stress, depression, and a profound sense of betrayal, which may erode your trust in others.

Scams can cost you more than money
Falling victim to a financial scam can shatter your personal relationships as you grapple with the shame and guilt of being deceived. The financial strain can cripple your ability to cover daily expenses, save for future goals, or secure a comfortable retirement.
In extreme cases, the resulting financial instability may force you to borrow desperately from friends and family, or it could lead to total financial collapse, leaving you struggling to afford even the most basic necessities.

Crypto and scams
Scammers trick victims into sending cryptocurrency. This makes scams even more dangerous because once you send your crypto, you can't get it back. Unlike banks, crypto transactions are permanent and have no refunds.
Scammers create urgent and convincing stories to trick people into sending money quickly without checking. The anonymous nature of cryptocurrency makes it almost impossible to catch scammers.
If you send cryptocurrency - it's gone forever.

What are some common scams?
Investment scams
Investment scams often begin with an unexpected email, text message, or phone call from a stranger. To protect yourself when sending funds through CoinJar, consider the following questions:
- Have I received unsolicited emails, texts, or phone calls from someone I don’t know?
- Am I being promised high returns with little or no risk and a minimal initial investment?
- Have I been asked to pay taxes or fees using funds sent internationally?
- Am I being encouraged to invest with companies based outside the U.S. or those not registered with the U.S. Securities and Exchange Commission (SEC) or Financial Industry Regulatory Authority (FINRA)? (Scammers may impersonate legitimate firms to appear credible.)
- Am I getting frequent or aggressive calls from international numbers or so-called “account managers”?
- Have I been allowed to make small withdrawals to build trust, followed by pressure to invest more?
If you answered "yes" to any of these questions, you might be involved in a scam.
Recovery / Refund scams
Recovery scams often target individuals who have already fallen victim to an investment scam. Scammers may use details of your previous loss to convince you they can help recover your funds—often for an upfront fee.
To protect yourself when sending funds through CoinJar, ask yourself:
- Have I been promised the recovery of funds lost to an overseas investment company?
- Is the recovery company registered or located in the United States and properly licensed?
- Was I contacted unexpectedly or by someone I don’t know, claiming they can recover my money?
- Am I being asked to pay recovery or legal fees before any money is returned?
- Have I been given a generic or templated Alternative Dispute Resolution (ADR) letter?
Always verify the legitimacy of any recovery service with official sources like the FTC or SEC before taking action.
If you answered "yes" to any of these questions, you might be involved in a scam.
Romance scams
Romance scams often start on dating apps and websites, but they can also begin through social media, text messages, emails, or phone calls. In these scams, fraudsters exploit people seeking romantic relationships—often gaining trust before making financial requests.
To protect yourself when sending funds through CoinJar, ask yourself:
- Have I been asked—or guided—on how to open a CoinJar account?
- Do I feel emotionally connected to this person, which may be clouding my judgment?
- Have I been asked to install remote access software like AnyDesk or TeamViewer on my device?
- Is the person claiming to be overseas or in another country—such as Australia—and unable to meet in person?
- Have I only communicated with this person online, never face-to-face?
- Have they requested emergency funds via Bitcoin (BTC) instead of U.S. dollars?
- Has anyone asked me to deposit small amounts into a U.S. bank account to purchase cryptocurrency on their behalf?
- Have I been asked to pay for their travel, accommodation, or other personal expenses?
If any of these sound familiar, pause and reassess. Romance scams are emotionally and financially devastating—stay alert and verify before sending money.
If you answered "yes" to any of these questions, you might be involved in a scam.
Remote Access scams
Remote access scams often start with an unsolicited phone call, text message, or email that appears to come from a legitimate company—such as your phone carrier, internet provider, or tech support service. Scammers use this approach to trick you into giving them access to your devices and personal information.
To protect yourself when sending funds through CoinJar, ask yourself:
- Have I received an unexpected call or message from someone claiming to be from a well-known U.S. company (like AT&T, Verizon, or Comcast)?
- Have I been asked to open a CoinJar account for someone else?
- Have I been instructed to download remote access software (such as AnyDesk or TeamViewer)?
- Have I been asked to share personal information—like a photo of my driver’s license or passport?
- Have I been given scripted instructions to follow without explanation?
If any of these apply, it’s likely a scam. Never grant remote access to your device unless you are 100% certain the source is legitimate.
How can I protect myself from scams?
Download our checklist
You can use this checklist any time you need to send money somewhere else. The checklist is not a foolproof process, but a guide to identify common red flags associated with financial scams.
Do your own research
You can do your own independent research by:
- searching for the name of the recipient on the web
- if available, reviewing the recipient's terms of service/privacy policy
- checking to see if the recipient is registered, or holds an appropriate regulatory licence in the region they operate from
- reading other people's reviews of the recipient's services
- asking a friend or family member to help review the situation and offer a fresh look at the recipient
- asking for assistance from the team at your bank or financial institution
Has a stranger contacted you?
If someone contacts you asking you to become involved in cryptocurrency, ask yourself the following:
- Do I know who this person is?
- Why have they contacted me?
- Have they advised they can make large or high yield returns on my investment?
- Is the service they are referring me to regulated in the country I live in?
- Are they asking for remote access to my device or computer?
- Are they asking me to invest my money, or asking me to transfer money on their behalf?
- Is what they are saying true?
When a stranger contacts you, you should never provide:
-
- remote access to your computer
- information that should be kept private, such as email addresses and/or passwords such as those that grant access to your email inbox or your bank account
- information on your financial status or any personally identifiable information (such as identity documents)
Warning signs
There are some immediate warning signs that you might be involved in a financial scam, including but not limited to where a stranger:
- contacts you via a social media or messaging platform
- begins a conversation that quickly steers towards your financial status and getting started with investing
- claims that you need to provide them with a fee in order to release an amount of money they allege you own
- alleges you have a debt to pay and must pay it with a sense of urgency
- claims that they can make you a profit by making trades on your behalf but the trading platform only supports cryptocurrency
- requests remote access to your devices
- requests access to your identity documents
- requests access usernames/passwords for banking services
More resources
You can also visit:
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Federal Trade Commission (FTC) Scam Alerts – to check for known scams and stay up to date on new threats
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Cybersecurity & Infrastructure Security Agency (CISA) – for the latest alerts and tips on staying safe online
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Consumer Financial Protection Bureau (CFPB) – for guidance on protecting yourself from banking, credit, and investment scams
Remember
Cryptocurrency transactions are impossible to reverse and may not be recoverable by your bank, or CoinJar.
How do I report a scam?
If you believe you've been targeted by a scam or cybercrime, it's important to report it to the appropriate authorities in the United States.
You can file a report with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. Your report helps law enforcement track and investigate scam trends, even if not every case is individually investigated.
You may also be contacted by authorities if additional information is needed.
If you have any queries, concerns or questions, don't hesitate to submit a new Support request or get in touch with our Support Team on support@coinjar.com.