Red flags checklist and what to do if you are scammed
A quick red-flags checklist to use before you send money, and clear steps to take if you have been scammed, including how to avoid recovery scams.
You do not need to remember every scam type. A short checklist catches most of them. And if something does go wrong, acting quickly and calmly gives you the best chance of limiting the damage.
Red flags checklist
Stop and think if you notice any of these:
- Promises of guaranteed, fixed or very high returns.
- Pressure to act now: "limited spots", "offer ends tonight".
- Someone you met online offering investment help.
- Requests for your seed phrase, private key, 2FA code or remote access to your device.
- A request to send crypto first to receive more back.
- A platform or app you reached through a link from a stranger.
- Fees, taxes or deposits required before you can withdraw.
- Requests to keep it secret from family or your bank.
- Payment only in crypto or gift cards.
- Poor or unverifiable company details, or a company not in the regulator's register.
An offer says: "Join our AI trading bot, guaranteed 3% daily, only 20 places left, deposit via this link." That ticks three boxes at once: guaranteed returns, pressure and a stranger's link. Three red flags means walk away.
If you think you have been scammed
- Stop sending money. Do not pay any further "fees" or "taxes" to release funds. They will not release anything.
- Secure your accounts. Change passwords, reset 2FA, and if your seed phrase was exposed, move any remaining funds to a brand-new wallet with a new phrase. Revoke token approvals.
- Document everything. Save screenshots of chats, website addresses, wallet addresses, transaction IDs (hashes), dates and amounts.
- Report to the platform. If funds went through an exchange, contact its official support right away. Exchanges can sometimes freeze funds that arrive in accounts they control.
- Report to the police and to your national financial regulator or fraud reporting centre. Reports help investigations and may be needed for any later recovery.
- Talk to someone you trust. Scams are designed to be convincing. Being targeted is nothing to be ashamed of.
Beware of recovery scams
After a loss, victims are often contacted by "recovery experts", "blockchain lawyers" or even fake police officers who promise to get the money back for an upfront fee. These are almost always a second scam, sometimes run by the same people. Real authorities do not charge you to investigate.
Never pay anyone who contacts you offering to recover stolen crypto, and never give them your seed phrase or remote access. Reach out to the police or regulator yourself, using contact details you find independently.
Stolen crypto is often hard to recover. That is why prevention matters most, and why the checklist above is worth reading before every new opportunity.
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