Summary
This article explains what boiler room fraud involving crypto is, how to recognize it, and what to do if you encounter it. You’ll learn what to look out for, such as Trustpilot reviews, company locations, suspicious URLs, and fake crypto or forex exchanges. We also warn about recovery scams and refer to important support pages.
What is boiler room fraud involving crypto?
Boiler room fraud (also known as forex broker fraud) is a form of investment fraud where criminals pose as employees of a trustworthy crypto or investment platform. They try to convince you to send crypto to a fake wallet or invest in non-existent crypto projects.
Typical characteristics:
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You are contacted unsolicited via phone, WhatsApp, Telegram, or Facebook Messenger.
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The scammers often speak English.
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They use professional-looking websites with live prices and a personal "balance" that appears to grow but is fake.
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You’re pressured to quickly invest more money or crypto.
Crypto is attractive to scammers because blockchain transactions are final and difficult to reverse.
How does boiler room fraud work in practice?
The fraud usually follows these steps:
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Initial contact: You click on an online ad promising high profits in crypto or forex, or you're contacted out of the blue by phone or chat.
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Temptation: You’re directed to a professional-looking website and asked to create an account.
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First investment: You buy Bitcoin or other crypto through a legitimate exchange (like Bitvavo) and send it to your 'account' with the scammers.
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Fake profit: On the platform, you see your balance increase rapidly. These figures are fake and manipulated.
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More deposits: You’re encouraged to send more money to earn ‘even higher returns’.
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Withdrawal blocked: When you try to withdraw your money, there are ‘technical issues’ or you’re asked to pay additional ‘fees’ or ‘taxes’.
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Disappearance: Eventually the scammers vanish with your entire deposit.
What should you watch for to spot boiler room fraud?
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Trustpilot and online reviews: Check for honest reviews. Many negative reviews or an unusually high rating can be red flags.
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Company location and founding date: Find out where the company is located and how long it has existed. Companies that are newly founded and based in tax havens are often suspicious.
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URL and web address: Carefully check that the URL matches the official platform exactly. Watch for slight variations like a different domain (.net instead of .com) or spelling mistakes.
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Unsolicited contact: Legitimate platforms will never contact you unsolicited via WhatsApp, Telegram, phone, or social media.
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Pressure to invest quickly: Don’t let yourself be pressured into acting quickly or sending more money.
Beware of fake crypto and forex exchanges
Scammers are increasingly using fake platforms that closely resemble real crypto and forex exchanges.
Signs of fake exchanges:
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You see fake profit growth in your account.
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You're asked to make additional deposits to 'unlock' your profit.
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The platform is not licensed by De Nederlandsche Bank (DNB) or the Authority for the Financial Markets (AFM).
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There is little to no transparent company information available.
What else should you pay attention to?
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Always check if a platform has a license.
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Look for independent reviews.
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Verify that the web address matches the official exchange.
Extra warning: recovery scam
Have you been scammed? You may be contacted again by criminals offering to ‘recover’ your crypto investment for a fee.
Don’t fall for this.
No legitimate recovery companies can retrieve lost crypto. This is a new scam tactic, known as a “recovery scam”.
For more information, read our dedicated article:
Recovery scam - Bitvavo Support