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