According to a new report from the Better Business Bureau, cryptocurrency is ripe for fraud and financial loss

INDIANA– A new fraud report was issued today by the Better Business Bureau Serving Northern Indiana. Scams using cryptocurrencies include the following. Fraud and financial losses have increased dramatically due to a lack of regulation and consumer education, according to a BBB report.

The study looks at how criminals are taking advantage of the cryptocurrency market to steal from people who invest in it and people who fall for scams.

Cryptocurrency is a type of digital money that uses encryption technology to make it possible for anyone to send and receive money from anywhere in the world. A "crypto wallet" is a place where you keep your "cryptocurrency." It's made up of lines of computer code that are supported by a computer system called a "blockchain," which isn't run by anyone. Bitcoin, which was invented in 2009, is the most popular form of cryptocurrency and can be bought at tens of thousands of Bitcoin ATMs. It can also be used as a form of payment in some retail transactions. Ethereum is the second most common cryptocurrency, and it's a big part of the growing popularity of non-fungible tokens (NFTs), which are digital assets like pictures or music that can be bought with cryptocurrency as a way to make money. Cryptocurrency is very important because it doesn't work in the same way as bank deposits or credit card transactions. It doesn't have the same protections.

A man in Warsaw says he got a WhatsApp message that said he could make 30% by trading crypto futures. The message sent him to a fake website that asked him to send money from his bank to a crypto exchange, then send the crypto funds to the fake website link.

Because once they get it, "It's gone." Many people have lost a lot of money. Be careful and don't answer WhatsApp messages from people you don't know.

Reports from people who lost a lot of money in cryptocurrency-related scams are going up all the time. In 2021, the BBB got more than 2,400 complaints from people who lost money with cryptocurrency companies. In 2021, the BBB's Scam Tracker reported on more than 1,200 crypto scams and lost nearly $8 million. Between 2019 and 2021, scam reports to the BBB tripled, and scam losses tripled over the last two years, as well.

A lot of scammers like to use cryptocurrency because it has a lot of good qualities. It isn't very regulated and it's hard to get back what you lose once you lose it. It's also very popular, thanks in part to celebrity endorsements, but most people don't know much about it. The study says that the cryptocurrency market opens up new opportunities for scams like Ponzi schemes and fraudulent ICOs (initial coin offerings). This is because new currencies are being made and there aren't as many protections for traditional investors as there used to be.

A report from the BBB's Scam Tracker shows that most cryptocurrency scams start on social media, with the FTC noting that 25% of crypto fraud reported in 2021 came from social media scams. They may impersonate a victim's friends to tell them about how well they've done with crypto investing, or they may make Facebook posts that promise big gains.

There are some things you can do to keep from being scammed with cryptocurrency:

  • Keep your money safe. If you buy cryptocurrency, the safety of your wallet is very important. If you lose the key, your money is gone for good.
  • You should pay attention to email addresses and website addresses. They try to get people to log in and then get their log in information. Phishing scams often try to do this. These can then be used to steal money. Looking for a trade on the internet may lead to fake sites that advertise and look like real businesses. These are especially dangerous to look at on a phone.
  • Cryptocurrency should not be used to pay for things. You should be careful if someone asks you to pay with Bitcoin or another type of cryptocurrency. The government will never ask for this kind of payment.
  • Companies that say they can get your things back for you may not be real. Scam companies sometimes say that they can get back money that has been stolen – for a fee. Most of the time, these people are scam artists.
  • Watch out for reviews that aren't really reviews at all. A lot of scammers write fake reviews for their own businesses.
  • Make sure you don't buy things that celebrities say are good because they could be scams. A well-known person who has invested in cryptocurrency might make it seem like a good idea to rely on them. There are many times when those endorsements aren't approved. Even if they are, the celebrity may be paid for the effort and may not know more about the product than you do.
  • The claims people make on social media should be taken with a grain of salt This is where people most often find investment scams.
  • Keep an eye out for "friends" on social media who tell you how they made money with cryptocurrency and invite you to their house to show you. Accounts are often hacked. Call your friend to see if it is them.
  • Google Play or the App Store are the only places to get apps. They don't completely eliminate the risk of scams with apps, but they do offer some basic protection. Apps can be dangerous. Some of them have malware in them.
  • Do not believe promises that you will get money back. Nobody can say for sure how an investment will do.
  • Do what you can to get help and support from people you trust Cybercrime Support Network has a free, confidential support group for people who have been scammed.
** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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