In 2021, cryptocurrency schemes were the second riskiest scheme. But they are also the ones who lose the most money.
SAN ANTONIO โ The Better Business Bureau reports invest in cryptocurrency is riskier than ever. You will also likely lose a pretty penny; most people who fall victim to scams lose around $1,200.
The BBB report said that many of these scammers use social media to promote investment opportunities. Social media also allows scammers to communicate directly with people, often posing as friends to encourage people to invest.
"Cybercriminals are always one step ahead," said Jason Meza of the BBB. โWe have seen companies make glorified claims about new crypto products to boost the market price of their own stock. The idea behind this is to try to launch a fraudulent company that lacks transparency and financial reporting for you to invest in and end up losing your money. Scammers also imitate successful companies. They just duplicate or imitate a really successful company for you to invest in.โ
It's a red flag if you see an investment with high returns and low risks. Also, be careful if you receive an unsolicited, aggressive or cold offer to invest in cryptocurrencies.
โIt's really hard to decide what's the real deal and what's not, and it's a risky investment,โ Meza said. โYes, there is opportunity. But again, there is a major risk factor, especially in the new online platform that is virtual currency. So yeah, we're looking at it locally. We are seeing it globally. It's a trend."
The BBB said around 7,000 people reported losses of $8 million, so this is a scheme where you stand to lose big. If you can't afford to lose the money, don't invest in cryptocurrencies. If you choose to make a small investment in cryptocurrencies, incorporate the purchase into an overall investment strategy.
โWhen making any major investment decision, it's always important to understand the concept and which platform is best for you,โ Meza said. โAnother problem is that they are high risk (cryptocurrencies). Only time will tell if virtual currency becomes a major component of the financial markets, and if so, will these investments make sense as part of your multi-portfolio strategy?
"People are interested because they can remain anonymous and their ability to keep transactions secret. A lot of that plays into this, but you can get hacked if you use virtual currency. So if you lose your private keys, that's it. You lose." access to your funds.โ
Do your homework before buying virtual currency. There are few consumer protections in cryptocurrencies, so once the money is gone, there is no chance of getting it back.
