Fraud Watch: Cryptocurrency Scams – ABC27

This week, we’re talking about cryptocurrency scams. AARP says this is how they work.

Websites may promise huge returns if you invest in crypto. “Celebrities” offering investment opportunities in virtual currency. Online love interests asking for financial help or to invest with them in crypto. Or, you could get a call from a medicare plan company offering a special “deal” on a new plan during open enrollment.

What you should know is pitches that claim that virtual currency investments are low-risk are not true. The value of virtual currencies is driven by supply and demand, which can create big gains but also big losses. As for celebrity pitches, most celebrities do not manage their own social media accounts and they typically won’t engage directly with fans, especially with unsolicited investment opportunities. And romance scams are still a problem, and not just on dating apps, so be wary of those you meet online.

What you should do is understand the risk. Cryptocurrency is a new and highly volatile way to invest. Never invest in a virtual currency at the urging of someone who contacts you out of the blue or whom you have only met online.

One more tip if you have cryptocurrency, never share your private keys with anyone. That’s the long letter and number codes that allow you to access your virtual currency.