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From Super Bowl ads to Bitcoin ATMs, cryptocurrency seems everywhere lately. Although it’s yet to become a mainstream payment method, reports to the FTC show it’s an alarmingly common method for scammers to get people’s money. Since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams –about one out of every four dollars reported lost, more than any other payment method. The median individual reported loss? A whopping $2,600.
Confused about cryptocurrencies, you’re not alone. Before investing in cryptocurrency, know what differentiates it from cash and other payment methods and how to spot cryptocurrency scams.
Scammers are always finding new ways to steal your money using cryptocurrency. Here are some things to know to steer clear of a crypto con.
Only scammers demand payment in cryptocurrency. No legitimate business will demand you send cryptocurrency in advance – not to buy something or protect your money. That’s always a scam.
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.
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 ask you to send them crypto, that’s a scam.
Scammers are using some tried and true scam tactics — only now they’re demanding payment in cryptocurrency. Investment scams are among the top ways scammers trick you into buying cryptocurrency and sending it to scammers. But scammers are also impersonating businesses, government agencies, and love interests, among other tactics.
Crypto has several features that are attractive to scammers, which may help to explain why the reported losses in 2021 were nearly sixty times what they were in 2018. There’s no bank or other centralized authority to flag suspicious transactions and attempt to stop fraud before it happens. Crypto transfers can’t be reversed – once the money’s gone, there’s no getting it back. And most people are still unfamiliar with how crypto works. These considerations are not unique to crypto transactions, but they all play into the hands of scammers.
Here are some of the most common scams and how to spot them.
Investment scams
Investment scams often promise you can "make lots of money" with "zero risk" and often start on social media or online dating apps or sites. These scams can, of course, start with an unexpected text, email, or call. And, with investment scams, crypto is central in two ways: it can be both the investment and the payment.
Business, government, and job impersonators
In a business, government, or job impersonator scam, the scammer pretends to be someone you trust to convince you to send them money by buying and sending cryptocurrency.
Blackmail scams
Scammers might send emails or U.S. mail to your home saying they have embarrassing or compromising photos, videos, or personal information about you. Then, they threaten to 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.
To find additional tips to protect you and your family, visit our Security Center. At any time, if you have concerns about the activity on your account or feel you may be targeted by scammers, please call the bank at 309.272.1000.
