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5 Ways to Avoid Crypto Scams

Summary Cryptocurrency can attract scammers looking to take advantage of uncertainty and excitement. Learn how to protect yourself and make informed financial decisions.Key Takeaways
  • Research investment opportunities carefully.
  • Be skeptical of guaranteed returns or quick-profit claims.
  • Verify investment platforms before transferring money.
  • Protect account credentials and personal information.
Scammers love fresh opportunity and they’ve found it in cryptocurrency, like Bitcoin and many others. Along with running investment scams, crypto fraudsters also pose as government agencies or even an online love interest in hopes of getting your money.Here are 5 ways to avoid cryptocurrency scams:
  1. Don’t pay or give personal info to random contacts demanding crypto. Be wary of anyone who:
    • Wants you to withdraw cash and take it to a crypto ATM (especially if it’s an online purchase).
    • Sends you a check, then tells you to send money back via crypto because they “overpaid” you.
    • Demands that you pay in crypto to protect your money or solve a computer issue or legal problem.
  2. Don’t click random links about crypto if you get an out-of-the-blue text, email or social media message related to the above.
  3. Don’t trust promises of free crypto or huge profits for crypto investments. Not even if there’s a convincing celebrity endorsement – those are easily faked! Before investing in crypto, search the name of the company or person and the cryptocurrency name, plus words like “scam,” “complaint” or “review.”
  4. Don’t pay up front for a job. No legit company would make you pay money or buy cryptocurrency to work there.
  5. Don’t send crypto (or money of any kind) to an online love interest who asks you for it or says they can help you make money investing in cryptocurrency.
If you think you’ve been a victim of a cryptocurrency scam, report it to the Federal Trade Commission (FTC) and reach out to your financial institution right away. Summit members, give us a call at 800-236-5560.

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