Texans lost more than $1 billion to scams involving cryptocurrency in 2025, according to the FBI, second only to California in the amount siphoned away by fraudsters.
Scams using crypto often involve fraudulent investment opportunities, but criminals are increasingly turning to the digital currency as a fast payoff that is difficult for law enforcement to track.
With cryptocurrency scams on the rise, here’s what to look for and what to do if targeted by scammers.
What are the most common cryptocurrency scams in Texas?
Scams generally fall into two categories, said Michael Levine, chief felony prosecutor for the Cyber and Financial Crimes Division of the Harris County district attorney’s office.
The most common are investment schemes where victims buy fraudulent cryptocurrencies or use crypto to invest in fake businesses.
Even legitimate-looking websites can be a front for a fraudulent operation, Levine said, which is why it’s important to vet sites by seeing if the company has been written about in reputable publications or approved by certain banks.
“The software in these things is wonderful, it looks just like an Ameritrade or E-Trade,” Levine said. “It looks just like a legitimate trading platform to the victim, and because it’s all fake, it looks like they’re making a lot of money.”
The best way to ensure your money is safely invested in cryptocurrency is to use verified, known exchanges. Be sure to do research beforehand or ask your banking institution for guidance.
Another common technique — known as romance scams or “pig butchering,” playing on the image of fattening a hog for slaughter — entices would-be victims through flattery and kindness. Once a relationship is established, the victim is directed to invest through a website or app, or directly asked for money through cryptocurrency.
Scammers are also impersonating law enforcement or state agencies, sometimes providing names of real people who work at the departments they are impersonating. Common tactics include telling victims they missed jury duty and now owe fines, or that someone falsified their signature on a legal document.
To bolster the illusion, scammers can “spoof” phone numbers, allowing them to call victims from numbers of reputable sources like a sheriff’s department or city clerk. The easiest way to determine whether you’re speaking to someone from the agency is to simply hang up and call back, or visit in person.
Texas has also seen a spike in cryptocurrency kiosk scams, ATM-like machines that convert cash to digital currency. Scammers impersonating bank employees or law enforcement direct people to pay bail money or transfer “vulnerable” account funds into these machines, which then send crypto directly to the scammer.
No bank or government agency, including a court, police department or licensing board, will ask for cryptocurrency or request payment through a crypto kiosk. If asked to do so, contact your local authorities.
How can I tell if I’m being scammed?
Whether receiving a phone call from someone claiming to be with law enforcement or a text message about a quick investment opportunity, watch out for:
- Strangers offering business opportunities over social media or text.
- Phone numbers that don’t match the official contact info of an agency or business.
- Conversations directed to a third-party app like WhatsApp or Telegram.
- Being discouraged from sharing your situation or the conversation with others, sometimes under threat of financial or legal consequences.
- Being sent official looking legal documents by text message.
- Being provided a callback number that doesn’t match the original caller’s number.
What if I’m scammed or know someone who was swindled?
After ensuring those involved in a scam are safe, immediately contact your banking institution and local law enforcement to file a police report. Be sure to keep all records, documents and messages involved in the scam.
You should also submit complaints and reports to the FBI’s Internet Crime Complaint Center, also known as IC3, and the Texas attorney general’s office. IC3 gathers data and complaints to help track scammers, and the attorney general can take action against businesses that falsely advertise services.
Because cryptocurrency is able to move so quickly once deposited into a digital wallet, most law enforcement agencies have roughly 36 to 48 hours to secure stolen funds. Most victims do not recover stolen money — but officials stress that reporting the scam is still important.
Scamming victims often feel shame or guilt about being tricked — a side effect that can deter reporting and hurt victims long after the fraud. Yet being victimized by fraud is not uncommon: one in four U.S. adults have been scammed in their lifetime, according to a 2025 Gallup poll, and one in 10 report being scammed more than once.
“There’s a saying in the [scam] world that no one is unscammable, you just haven’t tried the right script yet,” Levine said. “Please don’t feel like you must be a fool if you fall for one of these scams.”
Who is most at risk for cryptocurrency scams?
Those 60 or older are the most frequently targeted for cryptocurrency scams and who lose the most money, according to FBI data, but anyone is susceptible to scams. Those over 60 lost more than $396 million in 2025 in Texas.
For those with family members who are older or less technologically savvy, it can be helpful to walk them through how to identify spam texts or calls and ask them to inform you whenever strangers ask for money.
How is Texas responding to crypto scams?
Texas has a Financial Crimes Intelligence Center based in Smith County that helps law enforcement statewide investigate financial crimes, including cryptocurrency scams. The Texas State Securities Board also investigates fraudulent cryptocurrency activity.
Before the start of the next legislative session in January, state lawmakers are holding committee hearings on a list of issues designated by Lt. Gov. Dan Patrick in the Senate and House Speaker Dustin Burrows. Those topics include reducing elder fraud and regulating cryptocurrency and associated technologies, including crypto kiosks.
