Criminals are constantly finding new ways to steal your money. Be scam-smart by learning how to avoid cryptocurrency scams.
Some important facts to be scam-aware:
- Only scammers demand payment in cryptocurrency. No legitimate business will demand cryptocurrency.
- Scammers guarantee big returns. There is no such thing as a guaranteed or risk-free investment.
- Most digital asset scams begin on social media or through messaging apps. Be wary of the people you meet online, especially if you receive an unexpected payment request or promise of free money.
- Scammers demand a fee or promise to recruit other investors to earn money or commissions. The only real people benefiting from the returns are those at the top.
- Scammers require a fee to be paid before refunding any money. Most victims realize they’re involved in a fraud scheme when they can’t get their money back.
Protect yourself:
- Legitimate cryptocurrency exchanges have readily available disclosures with detailed information about the blockchain and associated tokens. The success of a cryptocurrency relies on math and cryptography. If the technical information is not transparent and verifiable, it could be a scam. Don’t settle for less than full disclosure.
- Research and verify investment claims. Stay informed about cryptocurrency investment scams and other common investment scams.
- Only work with investment platforms and advisers registered in the U.S. Verify their address by doing a street-level map search and their business and professional licensing, including regulatory filings with the U.S. Securities and Exchange Commission.
If you become a victim of an investment scam, immediately contact your financial institution. Learn more at consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams.