Scam warning: told to buy crypto on Binance or Coinbase to invest? It is a red flag

Updated on November 9, 2026 · 3 min read

In short: an “advisor” helps you open an account at a well-known exchange, such as Binance or Coinbase, and makes you buy cryptocurrency to send to their platform. The exchange is real, but the destination platform is not. They do it because your bank may see a normal purchase at a well-known company and because cryptocurrency that has been sent cannot be taken back. If you are at this point, do not send anything.

How it works

1. They tell you your bank won’t do. The platform “does not accept” your transfer or your card, and you have to use cryptocurrency.
2. They help you open the account at a real exchange. Sometimes they do it through AnyDesk or a video call.
3. You send yourself money from your bank to your exchange account. Up to here, the money is still yours, unless someone has access to your account.
4. You buy cryptocurrency, almost always USDT or Bitcoin.
5. You send it to an address given to you by the advisor. That is the moment you lose the money.
6. Your dashboard balance goes up. The platform shows you the deposit and some profits. Australia explains it like this: they look real, but there is no trading, and what you deposit goes to the scammers.

Why they use a real company

• It gives you confidence. You recognise the name and the app is in the official stores. But that company knows nothing about your “investment”.
• Your bank may see less. It sees a payment to a well-known exchange, not to an unknown website, although some banks also monitor or block these payments. That is why they give you scripts to answer your bank: “say it is for yourself”.
• There is no way back. A confirmed cryptocurrency transfer has no chargeback. The exchange can help the police, but it cannot undo it.
• You can keep buying. With the account open, paying more is very easy.

Signs that you are being scammed

• Someone you don’t know guides you step by step by phone or chat.
• They tell you what to answer if the bank or the exchange asks you questions.
• They give you a wallet address to deposit into “your account”.
• They ask you not to talk about this with the bank.
• They send you screenshots of other customers getting paid.

What to do depending on where you are

You haven’t sent anything yet: stop. If you have bought cryptocurrency and it is still in your account, it is still yours. You can sell it and return the money to your bank account. If anyone had access to your computer, first change your passwords and turn on two-step verification.

You have already sent it:

1. Do not send any more, even if they ask you to pay to withdraw.
2. Keep the wallet addresses, the transaction IDs (hash), the chats and the receipts.
3. Tell the exchange with those details. It can block funds if they are still in one of its accounts, although that will not always be possible.
4. Tell your bank and report it to the police. With a report, the police or a court can request data from the exchange.
5. Distrust anyone who promises to trace and recover your crypto in exchange for a payment: it is the second scam.

If the app where you see your profits is an unknown platform, also read fake exchanges.

Important

We are not saying that these exchanges are scams: they are real companies that these networks use as a bridge. Whether they can operate in your country is shown in your regulator’s register. Nor is this a recommendation to use them or investment advice. And bear in mind that there are also scams that pose as them: Australian police warned in 2025 about fake messages in Binance’s name. Type the address yourself and do not use the links they send you.

Where this comes from

Our contributors do not deposit money: this stage is based on what victims report. The linked warnings cover fake platforms and exchange impersonation, not the whole process.