Cryptocurrency scams are skyrocketing. Every day, new victims fall prey to these sophisticated schemes. But how can you protect yourself from these cyberscams?
Real Questions, Real Concerns
Ever wonder if that email from Venmo asking you to buy Bitcoin is legit? One of our team members did, and it turned out to be a scam. Scammers are getting smarter, and their tactics are harder to spot.
Why Are Cryptocurrency Scams So Common?
Scammers love cryptocurrency because:
- No Legal Protections: Unlike credit cards, crypto transactions have no legal safeguards.
- Irreversible Payments: Once you send crypto, it’s gone. No refunds.
- Public Confusion: Many people don’t understand how crypto works, making them easy targets.
Common Cryptocurrency Scams
- Government Impersonators: Claiming you owe taxes or fines.
- Online Dating Scams: A new love interest asks for money to handle an “emergency”.
- Job Scams: Requesting payment for job-related expenses.
- Investment Scams: Promising guaranteed returns with no risk.
- Blackmail Scams: Threatening to release compromising info unless paid in crypto.
How to Protect Yourself from Cryptocurrency Scams
- Only Scammers Demand Cryptocurrency: Legitimate businesses and government agencies never ask for crypto payments.
- Avoid Job-Related Fees: Never pay fees to secure a job.
- Be Cautious with Online Romances: If someone you meet online asks for money, it’s likely a scam.
- No Guarantees in Investments: Be skeptical of guaranteed profits, especially in crypto.
- Don’t Transfer Money on Demand: Your money is safe where it is. Don’t move it based on an urgent demand.
Report Scams
If you come across a scam, report it to BBB’s Scamtracker. This helps warn others and can stop the scammer.
Some Good News for Consumers
The Consumer Financial Protection Bureau (CFPB) is cracking down on companies like Freedom Mortgage Corporation for violations. In June, the CFPB proposed a $3.95 million penalty for submitting incorrect mortgage data to federal regulators. This shows that regulatory bodies are taking action against financial fraud.
Stay Safe, Stay Informed
Staying informed and vigilant is your best defence against cryptocurrency scams. Always double-check any requests for money, especially in cryptocurrency. And remember, if it sounds too good to be true, it probably is.
For more tips and updates on how to protect yourself from cryptocurrency scams, keep following our blog.
Photo credit: Wazirx
