Cryptocurrency buzz drives record investment scam losses
Scammers are using the excitement around cryptocurrency to trick people into fake investment schemes. They promise huge returns but steal your money instead.
How it works
Scammers contact victims online, posing as friendly investors, love interests, or celebrities, and pitch cryptocurrency investment opportunities that sound plausible. They may direct you to fake websites that show your investment growing, or they may pose as government agencies or known crypto exchanges. When you try to withdraw profits or send more money, the scammers disappear or demand additional cryptocurrency, leaving you with nothing.
Red flags to watch for
- Promises of guaranteed huge returns or instant multiplication of your crypto
- Someone you just met online (dating app or chat forum) starts discussing crypto investment
- Fake website with celebrity endorsements, testimonials, and crypto jargon
- Caller claims to be from government agency or well-known exchange like Coinbase
- You can see profits on screen but are blocked from withdrawing them
- Requests for more crypto before you can cash out
What to do
Do not send cryptocurrency to anyone promising returns, and do not trust unsolicited investment tips from online contacts or callers. If someone insists you use crypto, it is a scam. Hang up and call the agency directly using a number from its official website, or block the contact. Report the scam to the FTC at ReportFraud.ftc.gov and forward suspicious texts to 7726 (SPAM).
If this reached you
Source: FTC . Scam Sentinel summarizes official guidance in plain language; it is a decision aid, not a guarantee.