Crypto transactions can move quickly and may be impossible to reverse. Before sending funds, signing a wallet request, or connecting to an application, slow the process down and verify what will happen.
Use this checklist as a defensive pause—not as a guarantee that an opportunity or application is safe.
1. Stop when someone promises guaranteed returns
“Guaranteed profit,” “zero risk,” and fast, unusually high returns are classic fraud warnings. A joint Investor.gov alert from SEC and CFTC staff identifies those claims as hallmarks of fraudulent digital-asset pitches.
The FTC's crypto scam guidance makes the same point: nobody can guarantee profits in a volatile market.
2. Treat urgency and unsolicited contact as warning signs
Pause if an unexpected caller, message, “support agent,” government impersonator, employer, or online acquaintance directs you to buy or send cryptocurrency.
Do not verify the request using a link, phone number, or account supplied in the same message. Find a known official channel independently. Investor.gov also warns that unsolicited pitches and pressure to act immediately are common fraud signals.
3. Never disclose a private key
Ethereum’s account documentation explains that private keys sign transactions and grant custody over funds associated with an account. The FBI's Internet Crime Complaint Center likewise notes that the associated private key authorizes transfers from a crypto address.
A legitimate support process should not require the secret that controls your wallet. If someone asks for it, stop.
4. Read the exact action before signing
A wallet signature may authorize more than a simple login. A transaction can transfer funds, approve token access, or invoke smart-contract code.
Ethereum’s smart-contract documentation says user transactions execute contract functions and warns that interactions are irreversible. Check the destination, network, asset, requested permission, and amount shown by your wallet. If the interface is unclear, do not assume the action is harmless.
5. Assume there may be no chargeback
The FTC says cryptocurrency payments typically do not carry the same legal protections as credit or debit card payments and usually cannot be reversed unless the recipient returns the funds.
Rights vary by service, payment method, contract, and jurisdiction. Before acting, understand who holds the assets, what recovery process exists, and which rules apply.
6. Check the counterparty, not just the website
A polished interface is not proof that an operator is legitimate. Verify the legal entity, registration claims, withdrawal rules, fee schedule, custody arrangement, and contact information.
Investor.gov recommends checking whether sellers and firms are licensed or registered where required. Be especially cautious when a platform shows profits but demands another payment for “taxes,” “verification,” or withdrawal.
7. Preserve evidence if something goes wrong
If you suspect fraud, stop sending additional funds. Preserve:
- wallet addresses;
- transaction hashes;
- asset types and amounts;
- dates and times;
- messages and usernames;
- websites, domains, phone numbers, and email addresses.
IC3 identifies these details as useful when filing a complaint. The FTC also directs victims to report to relevant regulators, IC3, and the exchange used for the transfer.
8. Be skeptical of recovery services
Fraud victims are often targeted again. IC3 warns about cryptocurrency recovery services, especially those demanding an up-front fee. A request to send more crypto to unlock, trace, insure, or recover earlier losses can be another advance-fee scheme.
Use verified law-enforcement, regulatory, legal, or platform channels. No recovery outcome is guaranteed.
The bottom line
Before you send, sign, or connect: stop the urgency, verify independently, protect wallet-control secrets, read the exact action, and understand the lack of reversal. If any part remains unclear, do not let someone else’s deadline make the decision for you.
Informational content only; not financial, legal, or tax advice. Rights and reporting options vary by jurisdiction.