You have probably heard of cryptocurrency, a trendy new way of investing your money. But how safe are these investments, and how do you protect yourself from cryptocurrency fraud? This page explains cryptocurrency and provides tips on how to avoid getting scammed.
Cryptocurrency is a digital asset that uses encrypted networks to execute, verify, and record transactions without the involvement of a centralized authority, like a bank or government. Cryptocurrency can be purchased through an exchange or from a kiosk/ATM. While Bitcoin, the most well-known cryptocurrency, may be accepted as payment at some stores, cryptocurrency is generally not accepted in exchange for goods and services.
Consumers should be cautious of investing in cryptocurrency, which is highly volatile and largely unregulated. Additionally, criminals employ a variety of scams involving cryptocurrency.
Avoiding Cryptocurrency Scams:
Don’t respond to personal solicitations involving cryptocurrency from an unknown source (e.g., through messages on WhatsApp, Signal, Telegram, Facebook, email, text, etc.).
Don’t send cryptocurrency to someone you haven’t met in person; even if you have met them, be wary.
Verify all requests for payment of a debt independently. If a caller claims to be from a company or government agency, hang up and call the published customer service phone number of the company or agency. No legitimate entity will demand payment by cryptocurrency or promise you a reward for paying in cryptocurrency.
Understand that if a cryptocurrency investment seems too good to be true, it probably is.
Be aware that you will not be able to reverse a cryptocurrency transaction and get your money back.
Don’t invest money you’re not prepared to lose.
