While legislators debate consumer protections for cryptocurrency and gift cards, scammers continue to exploit these hard-to-trace currencies. Whenever someone instructs you to pay with either, disengage. Err on the side of caution and don’t give anyone who asks for either form of currency the benefit of the doubt.
Wouldn’t it be great if there were a surefire way to tell if a scam was afoot? Believe it or not, there is. If any person, business, or government entity requires you to pay them cryptocurrency or via a gift card, it’s a scam.
But if that’s all it takes to spot a scam, how did fraudsters rake in $1.78 billion in crypto payments and $233 million in gift card payments in 2025, according to the Federal Trade Commission (FTC)?
It’s simple: Scammers are motivated by the prospect of a good haul, and they’ll jump through any hoop for the chance to score big. Rest easy, though, we’re on top of their latest tricks. In this article, we’ll share three sets of alarm bells that can signal a scam is afoot: common storylines, tactics, and payment requests.
Why scammers prefer crypto and gift cards
Scammers like dollars that come their way via cryptocurrency or gift cards because such money moves quickly and is less traceable than, for example, money they could get through credit card payments, cashed checks, or bank account transfers.
Plus, fraudsters like how easy it is for their “marks” to access cryptocurrency and gift cards. After all, crypto kiosks at grocery stores now offer cash-for-crypto options, and everywhere from pharmacies to gas stations sell gift cards.
Legislators are trying to catch up to the criminals with industry regulations and consumer protections that address the currencies.
In the meantime, Stefan Muehlbauer—head of U.S. government affairs at digital asset auditing firm CertiK—says education is one of the best ways to stay protected. As he told Decrypt, “By the time a victim is at a kiosk, they are already deep in the scammer’s trance.” That means the goal is to spot the scam much earlier.
Alarm bell #1: You encounter one of these common storylines
Scammers rely on a handful of common storylines to reel in victims. Since these narratives have been around for years, fraudsters have fine-tuned who they target, the tools they use (texts, phone calls, websites, apps, QR codes, etc.), and how they deliver the pitch.
Some of these may sound ridiculous, but a smooth-talking scammer can sell sand in the desert.
Blackmail scams: The scammer says they have compromising images, videos, or information about you or a loved one and demands payment in exchange for keeping it out of the public.
Impersonator scams: The scammer impersonates someone they aren’t to get their victims to pay them. That might be an authority (such as the local police or IRS) or a representative from a well-known company (such as Amazon or Apple). These fakers might tell you that you owe money or that they owe you a refund.
Job scams: The scammer advertises or otherwise offers a job with great benefits and pay. The hitch? You must “pay to play.” These payments might be pitched as training, equipment, or enrollment fees.
Prize scams: The scammer congratulates you for being a lucky winner. Before you can get your prize, however, they inform you that you have to pay related fees, taxes, delivery costs, etc.
Romance scams: The scammer “meets” you over the phone or email, or via a dating site or app. They flirt with you, and, over time, they confide in you, sharing an investment opportunity or an economic hardship they or a family member is experiencing.
Reimbursement scam: The scammer “mistakenly” sends you a check. They tell you to go ahead and deposit the check, then reimburse them. You can even pocket some of the money, they say, as thanks for your honesty and trouble. (Spoiler alert: Their check to you bounces, but not before you’ve paid them.)
Tech support scams: The scammer sends word that your device needs updating, upgrading, or protecting. If you fork over funds, they promise to make your hardware safe and operational.
Alarm bell #2: You run into these typical tactics
Beyond classic plotlines, scammers often use these common tactics to pressure you into acting.
They rush and isolate you. You’re told to act fast or face consequences. The situation feels urgent or like it’s getting worse by the minute. You may also be told not to tell anyone or not to look things up—cutting off outside input right when you need it.
They sound convincing and come prepared. The scammer has an answer for everything and brushes off your doubts. They may know details about you—your name, location, or habits—which makes it feel legit. Their messages, websites, and documents often look polished and professional.
They keep you off balance. Plans to verify or meet fall through—there’s always an excuse. At the same time, they might switch from friendly to forceful, helpful to impatient, making it harder to think clearly.
Alarm bell #3: You’re told to pay via cryptocurrency or gift card
As noted earlier, if anyone or any entity asks you to pay via crypto or gift card, rest assured, it’s a scam. Be forewarned, though, that the scammer might spend hours, days, or even months wearing down your defenses before they sound this would-be alarm bell.
Stop in your tracks if you’re directed to:
Convert cash into cryptocurrency and transfer it to a phone number or QR code they supply.
Buy a specific type of gift card (anything from eBay to Google Play) and share the card’s number and PIN with them.
Pay for the gift card or cryptocurrency they want you to buy with a digital card or app, like Cash App or Venmo.
Purchase an item or service using cryptocurrency.
If you were scammed into paying via crypto or gift cards, follow the traditional recovery steps outlined here. (The FTC manages this helpful list of contacts and instructions when gift cards are in play.)
And, as always, contact Allstate Identity Protection if you’re a member. We’ll help you sort out your options to recover, from start to finish.
