Beware Cryptocurrency Scams

Watch For Scams is dedicated to helping you avoid becoming a victim of fraud.

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Beware Cryptocurrency Scams

Investigators have said the scam usually starts with a call, text, or message through a social media platform. The stranger builds trust with the victim before bringing up cryptocurrency and introducing them to an investment platform that someone the victim knows has been using with high-yielding results.

The victims then invest money into these websites, often being able to withdraw small amounts to create confidence or legitimacy, then often dropping their life savings, all with the hopes of the same promising return.

Although it’s yet to become a mainstream payment method, it’s an alarmingly common method for scammers to get peoples’ money, according to the Federal Trade Commission. Since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams – that’s about one out of every four dollars reported lost, more than any other payment method. The median individual reported loss? A whopping $2,600.

Use the following ways to avoid cryptocurrency scams:

1. Only scammers demand payment in cryptocurrency. No legitimate business is going to demand you send cryptocurrency in advance – not to buy something, and not to protect your money. That’s always a scam.

2. Only scammers will guarantee profits or big returns. Don’t trust people who promise you can quickly and easily make money in the crypto markets.

3. Never mix online dating and investment advice. If you meet someone on a dating site or app, and they want to show you how to invest in crypto, or asks you to send them crypto, that’s a scam.

Remember - always watch for scams!