Stay Alert: Protect Yourself from Cryptocurrency Scams
Crypto scams are on the rise, targeting both new and experienced investors. Learn how to recognize fake offers and keep your digital assets secure.
Cryptocurrency is a digital asset that uses encrypted networks to exchange, verify, and record transactions without the involvement of a centralized authority, such as a bank or government. It can be purchased online or at a kiosk or ATM found at gas stations or pharmacies. Due to the lack of oversight, it has become a favored method for scammers to steal money. The FTC has reported a 900% increase in losses due to crypto scams since the start of the pandemic and that number is only growing each year.
To avoid falling victim to a crypto con, here are some things to know.
- Only scammers demand payments in cryptocurrency. No legitimate business is going to demand you send cryptocurrency – not to buy something, pay for something and not to “protect your money.”
- Do not respond to personal solicitations involving cryptocurrency from an unknown source. Some examples of this include messages sent on WhatsApp, Signal, Telegram, Facebook, text, email, etc.
- Use caution if being shown a website or presentation involving returns on investment with cryptocurrency as even the most legitimate looking sites can be imitated.
- Understand that if a cryptocurrency investment seems too good to be true, it probably is.
- Never combine online dating with investment advice. If you meet someone online who wants to show you how to invest or send crypto, it’s a scam.
- Be aware that you will not be able to reverse a cryptocurrency transaction once sent.