An investment scam is when you are promised big returns on an investment that doesn't exist. The money you pay in goes straight to the scammers. Crypto is often involved, because crypto transactions are hard to trace and the money is hard to recover.
How does an investment scam work?
It often starts with an ad on social media, sometimes with fake endorsements from well-known people. When you show interest, a friendly "adviser" calls. You start with a small amount, and the adviser shows you profits on a professional-looking website. Then you are pushed to put in more.
When you try to withdraw, something always comes up: first you have to pay a tax, a fee or a "deposit". In the end, both the adviser and the website disappear. Investment scams are sometimes part of romance scamsRomance scamA scam where someone builds an online romance, often over months, to get the victim to send money or crypto. too.
Warning signs
According to the Icelandic police, warning signs include:
- promises that sound too good to be true
- being asked to keep the investment secret
- being asked to pay into several different bank accounts
- an investment you don't understand
- being asked to install an app such as AnyDesk, which gives access to your computer
Also check whether the company is licensed. A business offering crypto services in Iceland needs a licence as a crypto-asset service provider (CASPCASP (crypto-asset service provider)A company licensed under MiCA to provide crypto-asset services, such as buying, selling, custody or transfers.) under MiCAMiCAThe EU regulation on markets in crypto-assets, in force in Iceland since 1 January 2026, which sets the same rules for crypto services across the EEA..
What should you do?
If you have paid money in, contact your bank straight away. The sooner you act, the better the chance of stopping the payment, but crypto transactions can't be reversed. Then report it to the police through Ísland.is. Be wary of anyone offering to recover your money for a fee, as such offers are often scams too.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.