Cryptocurrency scams have become the second riskiest type of scams that victims encounter, according 2021 BBB Scam Tracker Risk Report. Reports sent to the BBB about fraudulent activity involving cryptocurrency have tripled in the past three years.
Tips to avoid cryptocurrency scams:
- Safeguard your digital wallet. If you lose the key, your funds are gone permanently.
- Look carefully at email addresses and website addresses. Phishing scams will try to trick you into logging in and then steal your log in credentials. Do not use a generic search online to find cryptocurrency companies. This can lead to fake sites which impersonate real companies. Be especially careful when viewing these on a phone.
- Be wary when paying for products with cryptocurrency. No one with the government will ever ask for this form of payment.
- Beware of fake recovery companies. Scam companies sometimes claim that they can recover stolen money – for a fee. These are usually scammers.
- Watch out for fake reviews & celebrity endorsements. The 2021 BBB Risk Report revealed survey respondents were unable to tell a fake review from a real one. Celebrity endorsements are often not authorized and even if they are, the celebrity may be paid for the effort and may not know more about it than you do.
- Be wary of “friends” who reach out to you on social media and tell you how they made money with cryptocurrency. Accounts are frequently compromised.
- Only download apps from Google Play or the App Store. Trusted app stores do not eliminate the threat of app scams, but they do offer a basic level of protection. Be careful with apps as some may contain malicious software.
- Do not believe promises of guaranteed returns. No one can guarantee how an investment will perform. If someone guarantees a return, this is a red flag.
If you are a victim or are targeted by a scam involving cryptocurrency, report it immediately to: