BBB warns of cryptocurrency scams

Reports from victims of large financial losses to cryptocurrency related scams are skyrocketing.
Published: Mar. 27, 2022 at 7:24 AM CDT
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CAPE GIRARDEAU, Mo. (KFVS) - Reports from victims of large financial losses to cryptocurrency related scams are skyrocketing.

That’s new information from the Better Business Bureau.

Whitney Quick, with the BBB, shares how to avoid being a victim.

“In 2021, BBB received more than 2400 complaints with monetary losses of nearly $8 million involving cryptocurrency companies. Scam tracker reports to BBB tripled from 2019 to 2021. And reported losses tripled over the last two years. So cryptocurrency accounted for the second highest scams are scam losses reported to the Federal Trade Commission in 2021. With losses of $750 million,” Whitney Quick said. “The FBI’s Crime Complaint Center and the Canadian Anti-Fraud Centre also had major increases in reports received a major increases in losses. So, BBB study notes that the research shows that most people do not make a report when they get scammed. So, actual losses suggested may be substantially greater many victims report that after purchasing cryptocurrencies, they were directed to websites where they had to create an account in order to monitor their investments. The websites are sophisticated, with many offering live customer service chats, but victims who want to withdraw their earnings are told that they must contribute more money to cover taxes, commissions, other fees, things like that. Ultimately, they can never withdraw their money. BBB scam tracker data shows that cryptocurrency scams most commonly originate on social media. Scammers may impersonated victims friends to tell them about their success and crypto investing. Or they may make a Facebook posts promising big gains. So some things to do, guard your wallet. If you buy cryptocurrency. The security of the wallet is a prime importance. If you lose the key, then your funds are gone permanently. Look carefully at the email addresses and website addresses phishing scams often try to trick people into logging in and then capture their login credentials. Those then can be used to steal money looking for an exchange within Internet search engine, mainly to fake sites which advertise and impersonate real companies,” she said.

“Be especially careful when viewing these on a phone. Don’t pay for products with cryptocurrency Be careful if anyone ever asks you to pay Bitcoin or another cryptocurrency no one in the government will ever ask you for this form of payment. Beware of fake recovery companies. Watch out for fake reviews. Be wary of celebrity endorsements Be careful about claims made on social media. Same thing with your friends who reached out to you on social media claiming that they made money with cryptocurrency and only download apps from Google Play or the App Store,” she said.

Quick encourages you to reach out to the Better Business Bureau if you have been a victim of a cryptocurrency scam. For more information, you can visit BBB.org.

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