Cryptocurrency investing has become the new craze. While more people are becoming involved in crypto investing, they are also risking becoming involved in a scam. There is a lot to learn about crypto investing, and more times than not, people are jumping on the bandwagon without being fully educated. This is how scammers are able to trick investors into giving up their money.
Reports show that crypto has become a new common way for scammers to steal money. Over 46,000 people have reported losing more than a billion dollars since the start of 2021.*
How the Scams Work:
- Scammers try getting the victim to “invest” money, promising they will help you make more quickly. Instead, the victim doesn’t make any money and ends up losing their initial investment.
- Scammers pose as someone on online dating apps and social media. They boast about being rich and offer to help the victim get started in crypto investing.
- Scammers impersonate major companies and the government by using messages or pop ups to claim there is a security breach. Then, they advise the victim that the only way to protect themselves is to invest money in crypto.
How to Protect Yourself from Crypto Scams:
- Know that only scammers guarantee payouts or fast, easy money.
- Don’t mix online dating and investment advice.
- Be cautious and don’t respond to anyone that might be posing as a real company or government agency. Legitimate agencies and companies won’t ever tell someone to buy cryptocurrency to sort out a problem and protect your money.
If you suspect or become the victim of a scam, report it to ReportFraud.ftc.gov.
*Spotting the FTC’s Most Reported Crypto Scams, Andrew Rayo, Federal Trade Commission.