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Protecting yourself from cryptocurrency fraud

Cryptocurrency is an innovative and convenient way to invest that has caught the eye of many—unfortunately, that includes fraudsters. As with any new technology, there are always those who seek to take advantage of the uninformed.

According to a recent analysis from the Federal Trade Commission (FTC), cryptocurrency is fast becoming the payment of choice for many scammers, with more than 46,000 people saying they lost more than $1 billion to crypto scams since the start of 2021.

If you’re thinking about getting involved in the crypto world, be cautious. Crypto transactions are similar to cash in that they’re nearly impossible to trace and if you fall victim to a scam, you’re unlikely to be able to recover your funds.

We have some advice to help you understand, spot, and avoid these rising scams.

Identifying cryptocurrency investment scams

Fraudsters use a variety of tactics to convince you to act fast and invest with promises of “guaranteed” high returns from your investments. Stay alert to these warning signs that you’re being targeted by a fraudster:

  • You’re asked to keep the transaction a secret or to lie to your financial institution. No legitimate business will ever ask you to do this.
  • You’re unexpectedly contacted about investing in cryptocurrency.
  • You’re pressured to act quickly and not getting answers to your questions.
  • You’re asked to provide your personal financial information or login information.
  • You’re told to remove any funds from an account for the purpose of “securing them.”
  • You’re asked to provide access to a personal device.

How you can avoid falling victim

Many cryptocurrency scams are sophisticated and convincing. Here are some ways to keep your funds safe from crypto scammers:

  • Avoid links promising easy money.
  • Ignore cryptocurrency-related social media ads
  • Meet with your financial advisor in person
  • Dismiss any investment “opportunity” that requires an up-front payment for fees or services
  • Be alert to anything suspicious—for example, legitimate advisors will not initiate contact through social media messages
  • Ask friends and family for recommendations

Watch this video about cryptocurrency investment scams and learn how
you can protect yourself from the same fate.

The best way to protect yourself from cryptocurrency fraud is to exercise caution and conduct thorough research. If it sounds too good to be true, it probably is.

If you suspect you’ve fallen victim to fraud, please call us at 1 (800) 479-7928 or contact us online. Learn how to protect your accounts from additional fraud and scams by visiting our online security center.