Beware Of Cryptocurrency

 

BBB press release covers an in-depth BBB study that shows lack of regulation and consumer education results in a dramatic increase in fraud and financial losses. The study finds that criminals are capitalizing on the cryptocurrency market frenzy to steal from unsuspecting investors or use it as a payment in common scams. Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. As a result, a virtual tug-of-war exists between the legitimate and fraudulent use of cryptocurrency. Some study findings include:

In 2021, BBB received:

· 2,465 complaints with losses of $7,933,474

· 1215 BBB Scam Tracker reports with losses of $7,953,502

· 579 negative reviews about cryptocurrency companies

Consumers need to know that two standard protections do not apply to cryptocurrency:

· Credit card chargeback protection

· Federal Deposit Insurance Corporation (FDIC) Insurance

Beware of:

· Sharing your cryptocurrency wallet

· Unfamiliar email addresses and website addresses

· Paying with cryptocurrency for products

· Fake recovery companies and reviews

· Social media celebrity endorsements, claims, and “friends.”

· Crypto apps from unfamiliar sources

· Promises of guaranteed returns