How to Avoid Cryptocurrency Scams
How to Avoid Cryptocurrency Scams
Scammers are always finding new ways to steal your money. A current scam involves using cryptocurrency. One sure sign of a scam is anyone who says you have to pay by cryptocurrency. In fact, anyone who tells you to pay by wire transfer, gift card, or cryptocurrency is a scammer. Of course, if you pay, there’s almost no way to get that money back. Which is what the scammers are counting on. Here are some cryptocurrency scams to watch out for.
Investment and Business Opportunity Scams
- A “company” promises that you can earn lots of money in a short time and achieve financial freedom.
- Scammers start with unsolicited offers from supposed “investment managers.” They say they can help you grow your money if you give them the cryptocurrency you’ve bought, but once you log into the “investment account” they opened, you will find that you can’t withdraw your money unless you pay fees.
- Scammers send unsolicited job offers to help recruit cryptocurrency investors, sell cryptocurrency, mine cryptocurrency or help with converting cash to bitcoin.
- Scammers tell you to pay in cryptocurrency to recruit others into a program and get rewards paid in cryptocurrency. The more you pay the more they promise you’ll make, but these are all fake promises.
- Someone calls pretending to be from the government, law enforcement, someone you met online or say you’ve won the lottery or a prize. They’ll wind up asking you for money. If you believe the story they tell and you seem willing to engage, they’ll stay on the phone to direct you to withdraw money from your bank, investment, or retirement accounts. Then they’ll tell you to go to a store with a cryptocurrency ATM (and they’ll stay on the phone the whole time). Once you’re there, they’ll direct you to insert your money into the ATM and buy cryptocurrency. They then send you a QR code with their address embedded in it. Once you buy the cryptocurrency, they have you scan the code so the money gets transferred to them. But then your money is gone.
- Scammers will send emails saying they have embarrassing photos, videos or personal information about you and will make it public unless you pay them in cryptocurrency. Don’t do it. This is blackmail and a criminal extortion attempt. Report it to the FBI immediately.
- If you read a tweet, text, email, or get a message on social media that tells you to send cryptocurrency, it’s a scam. That’s true even if the message came from someone you know, or was posted by a celebrity you follow. Their social media accounts might have been hacked. Report the scam immediately to the social media platform, and then tell the FTC at ReportFraud.ftc.gov.
What to Know About Cryptocurrency
Confused about cryptocurrencies, like bitcoin and Ethereum? You’re not alone. Before you use or invest in cryptocurrency, know what makes it different from cash and other payment methods. CLICK HERE to learn what cryptocurrency is and how to use, get and store it.
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