Scam and fraud red flags
The patterns agents meet between a first call and a closing, each with its tell, and the line between a real fee and a fabricated one.
From Lesson 3, Qualifying crypto buyers and avoiding scams. By Johnny Schiro. Updated 2026-10-10.
The one rule
A payment demanded before promised money can be delivered is the fraud. No exchange, custodian, escrow company or blockchain charges a fee to a separate wallet to release a balance.
| A real cost | A fabricated one |
|---|---|
| Network fee: paid from the sending wallet to the network, in the network's coin, small, never a percentage of the balance | "Unlocking," "synchronization," "node" or "gas" fee sent to someone else's address, or sized to the balance |
| Exchange rule: a daily limit, an identity check, a holding period | A deposit, upgrade or "activation" required before a withdrawal is permitted |
| Tax: owed to the government on a sale, paid later through a return | A tax that must be paid to the platform before funds are released |
| Escrow: a settlement company's fee on the closing statement | An "escrow release fee" or "regulatory bond" paid in advance to anyone |
Patterns and tells
| Pattern | The tell |
|---|---|
| The mysterious partner: an investor, trading associate or overseas contact who controls the funds and will release them | The money, the documents and the platform all trace to one person the buyer has never met in person; verification keeps slipping |
| Fake exchange or investment platform | Cannot withdraw to a wallet the buyer controls without a fee or a threshold |
| Fabricated balances and screenshots | Offered in place of verification; a balance that never moves |
| Fake proof-of-funds letter | Contact details do not match the issuer's published ones; the issuer cannot confirm it |
| Impersonated OTC desk, escrow company or institution | Asks the buyer to send crypto to it directly; a deposit address that did not come from the buyer's RealOpen account |
| Wallet-draining site or malicious signing request | A link that asks to "connect wallet" and approve a transaction to verify, claim or unlock |
| Seed phrase or private key theft | Any request for the phrase, by anyone, for any reason |
| Substituted wiring instructions | A change by email, especially near funding |
| Worthless token dressed as an asset | Cannot be found on any major exchange; the buyer or a partner created it |
| Romance, relationship or confidence scam | A new friend or mentor taught the buyer to invest and runs the platform |
| Fraudulent mining or staking platform | Guaranteed yields; withdrawals need a fee or a bigger deposit |
| Recovery scam | Upfront payment to recover money already lost |
Phrases that mean "I do not control the funds"
"I have crypto coming in." "Once my tranche unlocks." "My advisor manages it." "It's in processing." "I just have to pay the release fee." "It's locked until the balance reaches the threshold."
If the money isn't there
Handle it like a buyer who cannot get approved for a loan: no showings until there is a proof of funds letter from funds the buyer controls. No diagnosis, no argument about the platform or the partner, no recommendations of anyone. Leave the door open.
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