Signs of Crypto Fraud and How to Avoid Scams

Public interest in crypto assets for investment in Indonesia continues to grow. The Financial Services Authority (OJK) recorded that the number of crypto asset investors had reached 22.4 million as of May 2026, with a transaction value of IDR 23.01 trillion. Adi Budiarso, Chief Executive of the OJK’s Innovation in Financial Sector Technology, Digital Financial Assets, and Crypto Assets (IAKD) oversight, assessed that consumer trust in the digital asset ecosystem remains intact amid market fluctuations. Unfortunately, this growth is also being exploited by criminals.

For those new to crypto, or traditional investors considering adding digital asset exposure, understanding how crypto scams operate is the first layer of protection before placing a single rupiah. This article discusses common schemes, danger signs, and concrete steps to independently verify a platform’s legality.

The scale of the problem in Indonesia is significant. The Task Force for the Eradication of Illegal Financial Activities (Satgas PASTI) recorded public losses from illegal investments totalling IDR 142.22 trillion between 2017 and the third quarter of 2025. For digital financial transaction fraud, OJK and Satgas PASTI have operated the Indonesia Anti-Scam Centre (IASC) since 22 November 2024. As of 14 January 2026, the IASC had received 432,637 complaints with a total loss value of IDR 9.1 trillion, blocked IDR 436.88 billion in funds, and returned IDR 161 billion to 1,070 victims. Specifically for crypto assets, Satgas PASTI stopped the business activities of 228 illegal digital financial asset traders between January and May 2026. The message from the data is clear: money lost to scams is almost never fully recovered.

Since 10 January 2025, the regulation and supervision of crypto assets have officially transitioned from the Commodity Futures Trading Regulatory Agency (Bappebti) to the OJK, as mandated by Law Number 4 of 2023 on Financial Sector Development and Strengthening (UU P2SK). Consequently, crypto assets are now treated as Digital Financial Assets under the financial services regime. Transactions may only be conducted through licensed Digital Financial Asset Traders (PAKD) listed on the official OJK register. Any platform outside this list is legally illegal, with the law stipulating criminal sanctions of 5 to 10 years imprisonment and fines of up to IDR 1 trillion for unlicensed activities.

There are ten common crypto fraud schemes to be aware of. First, Ponzi and pyramid schemes, where returns for old investors are paid from new investors’ deposits rather than real economic activity. Second, robot trading and fixed-return promises, such as the Mark AI robot trading case investigated by the National Police’s Criminal Investigation Agency (Bareskrim), which caused losses of IDR 25 billion. Third, pig butchering, a love-investment scam where perpetrators build romantic relationships over weeks before directing victims to fake investment platforms. Fourth, rug pulls, where developers disappear with investor funds after inflating a token’s price. Fifth, phishing and fake sites or apps that mimic official platforms to steal login credentials and assets. Sixth, giveaway scams and impersonation of public figures, where fake accounts promise to double any crypto sent to them. Seventh, fake airdrops that require connecting a wallet or paying a ‘gas fee’ upfront. Eighth, fake admins on Telegram, WhatsApp, and Discord who spread malicious links. Ninth, pump and dump schemes where insiders sell off a token en masse after a coordinated hype campaign. Tenth, SIM swap and clipboard malware attacks that hijack phone numbers or alter copied wallet addresses.

Regardless of the scheme, most scams share universal red flags: promises of high, guaranteed returns with no risk, pressure to join immediately or deposit more money, and bonuses based on recruiting new members. To avoid becoming a victim, investors should apply the ‘2L’ principle—Legal and Logical—by always checking the official OJK whitelist for licensed traders and critically assessing whether an investment offer makes sound financial sense.