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Industry

FBI Explains How a Fake Crypto Investment Ends With a Cash Pickup

The warning shows how scammers bypass bank fraud checks by sending couriers to collect cash, making cryptocurrency investment fraud harder to detect.

Written By:
Shubham Soni

Last updated: 1 hour ago
Published 1 hour ago
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FBI Explains How a Fake Crypto Investment Ends With a Cash Pickup
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The FBI warns that cryptocurrency scams are shifting offline, using in-person cash pickups to evade detection and continue exploiting victims.
Scammers are adapting tactics to bypass bank scrutiny, instructing victims to withdraw cash to avoid blocked wire transfers and suspicious activity flags.
Victims, particularly older adults, are being targeted through social media and online platforms, with scammers using fabricated investment returns to build trust before demanding cash.

The Federal Bureau of Investigation (FBI) has warned that cryptocurrency investment scams are increasingly ending with victims handing over cash directly to couriers, rather than sending money through banks or crypto exchanges.

According to the official announcement made on Monday, scammers convince victims that cash pickups are necessary to protect their investments or unlock funds supposedly held on cryptocurrency trading platforms. In reality, the platforms are fraudulent, and the cash is collected as part of an ongoing investment scam.

The FBI says cryptocurrency investment scams are increasingly moving offline, with fraudsters using in-person cash pickups to evade bank scrutiny and continue extracting money from victims, particularly older adults.

How fake crypto investments lead to cash pickups

The FBI said the fraud typically begins with scammers contacting victims through social media, dating platforms, unsolicited text messages, or by posing as cryptocurrency investment experts online.

After building trust over days or weeks, the fraudsters encourage victims to open accounts on fake cryptocurrency investment platforms and transfer money. Victims are shown fabricated account balances and investment returns designed to convince them that their investments are growing. When victims attempt to invest larger amounts or withdraw profits, scammers change tactics.

Why scammers switch from bank transfers to cash

According to the FBI, financial institutions often detect or block suspicious wire transfers linked to fraud. To avoid those safeguards, scammers instruct victims to withdraw cash instead.

Victims are told the cryptocurrency platform requires cash deposits, that their account has been flagged, or that taxes, penalties, or verification fees must be paid before withdrawals can be processed. The agency said these explanations are intended to keep victims engaged while bypassing banking fraud controls.

Couriers collect the money in person

Once a victim has withdrawn the cash, scammers arrange for a courier to meet them at their home or another location. To reassure victims that the courier is legitimate, the scammer typically provides a verification method, such as the serial number of a U.S. dollar bill or a prearranged password. When the courier presents the matching code, victims hand over the cash.

The FBI said victims often see their balances increase on the fraudulent investment platform shortly after the pickup, reinforcing the illusion that the funds were successfully invested. When they later attempt to withdraw money, scammers demand additional payments, often repeating the same cash pickup process.

Investment scams are expanding beyond crypto

The FBI’s warning comes as authorities globally report increasingly sophisticated investment fraud campaigns. According to UK Finance’s Annual Fraud Report, consumers in the UK lost more than £221.5 million (about $300 million) to investment scams in 2025, a 40% increase from the previous year.

The report attributed much of the rise to artificial intelligence, which enables fraudsters to build convincing fake investment platforms, automate outreach campaigns, and create realistic communications targeting cryptocurrency and alternative asset investors.

Major sporting events also becoming scam targets

Fraudsters are also exploiting major global events to lure victims. Earlier this month, the Los Angeles County Sheriff’s Department (LASD) warned that cybercriminals were using fake FIFA websites, counterfeit social media advertisements, and fraudulent ticketing platforms to target football fans searching for World Cup tickets, merchandise, hospitality packages, streaming services, and betting opportunities. Authorities said the fake sites are designed to steal login credentials, payment information, and other sensitive personal data.

Law enforcement steps up international crackdown

At the same time, governments and technology companies are expanding efforts to disrupt fraud networks. In a coordinated operation announced on June 4, the U.S. Department of Justice, Coinbase, Meta, Microsoft, Starlink, and international law enforcement agencies targeted scam operations across Southeast Asia.

As part of the operation, Coinbase froze more than $3 million in cryptocurrency linked to criminal organizations, demonstrating how blockchain analysis is increasingly being used to trace and disrupt proceeds from online investment fraud.

Seniors among the most frequently targeted

The FBI noted that older adults are frequently targeted in these schemes, although victims span all age groups. The agency added that the same courier-based collection method has also appeared in other fraud schemes, including grandparent scams, tech support fraud, and law enforcement impersonation scams.

The FBI advises the public never to hand cash to strangers as part of an investment, regardless of the explanation provided. The agency also recommends avoiding unsolicited investment offers, verifying the legitimacy of cryptocurrency platforms through independent research, and refusing requests to share passwords, one-time passcodes, banking information, or cryptocurrency wallet credentials.

Users should also be cautious of “love bombing” and other trust-building tactics commonly used in romance and investment scams before financial requests are made.

Also Read: SlowMist Details Root Cause of $2.19M Aztec Connect Exploit

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Shubham Soni Crypto Content Editor
By Shubham Soni
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Shubham Soni is a veteran content editor and journalist with over three years of experience leading digital editorial strategies across the U.S. and Indian markets. With a background in high-pressure newsrooms, Shubham specializes in the rigorous fact-checking, structural editing, and narrative development of complex news and explainers. Throughout his career at prominent digital publications like Sportskeeda and Opoyi, he has managed fast-paced desks covering global politics, sports, and entertainment. His expertise lies in transforming technical information into accessible, high-impact reporting while maintaining strict adherence to editorial ethics and accuracy. At The Crypto Times, Shubham oversees the editorial workflow, mentoring writers to ensure all cryptocurrency research and analysis meets the highest standards of clarity and journalistic integrity.

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