Look for these Red Flags

Scammers try to trick people into sending money with promises of high returns. These convincing stories, fake endorsements, and pressure to act quickly are just a ruse. Here are warning signs to watch for:

  • “Guaranteed returns” or pressure to invest quickly.
  • Requests for payment in Bitcoin, Ethereum, or even gift cards.
  • Fraudulent crypto ATMs or “recovery” services that ask for upfront fees
  • Influencer endorsements (like Mark Cuban or Mr. Wonderful) that are fake quotes or AI-generated videos

An Example That Hits Close to Home

Aaron saw a social media ad promising huge crypto returns. The platform looked professional and displayed charts and graphs of their gains. There was even a video endorsement from Jeff Bezos. After depositing funds through a crypto ATM, his account balance appeared to grow rapidly. But when he tried to withdraw, the site demanded additional deposits, then disappeared.

That’s when Aaron realized it was a scam. He contacted 1st Source Bank for guidance, documented the fraud, and reported it to regulators.

How to protect yourself

Variations on the scam

These get-rich-quick scams use flashy websites, fake testimonials, and pressure tactics to seem legitimate. Here are some red flags to watch for:

  • Romance-investment scams: Criminals use personal relationships to pitch crypto opportunities.
  • Ponzi-style investment schemes: “Returns” are paid using money from new victims.
  • Fake trading platforms: Websites designed to look like legitimate brokers.
  • Deep-Fake Influencers: Testimonials from famous entrepreneurs that make them seem legit.

Related advice articles

Curious about crypto? Learn how to separate real opportunities from scams with these expert resources.

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What to do if something happens

Crypto transactions are nearly impossible to reverse, but you can still act quickly. Contact us, document what happened, and file a complaint with the FTC.

In a nutshell

Should I invest in crypto at all?

Cryptocurrency is highly speculative and somewhat unregulated. We don’t endorse it, but we know people are curious. That’s why 1st Source Bank provides educational articles on cryptocurrency risks and trends to help you make informed decisions. Read more about our crypto advice.

Want to learn about other banking scams?

See our full list here:

Common scams and how to avoid them