December 6, 2022

Volume XII, Number 340

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December 06, 2022

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December 05, 2022

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Privacy Tip #334 – Crypto Scams Continue to Top the List of Scams Reported to the FTC

It is tempting to get into the world of cryptocurrency investments. News items of early investors banking millions of dollars fuel the temptation.

But it is an investment strategy that is fraught with fraud, so investors beware.

According to the Federal Trade Commission (FTC), from the beginning of 2021 to the present day, more than 46,000 people have lost more than a billion dollars (that’s with a “b”) in crypto scams.

The FTC’s data spotlight shows that most cryptocurrency is lost to investment scams, that start with online apps or social media where the scammers promise that if you invest, you will make more money very quickly. Old trick, new currency.

The FTC states that to “steer clear of crypto cons:

  • Know that only scammers guarantee big payouts or fast, easy money. These lies get you to “invest” — but you won’t get any of your money back.

  • Don’t mix online dating and investment advice. If a new online love interest wants to show you how to invest in crypto, it’s a scam.

  • Spot the scammers asking you to send crypto. Real companies and government agencies will never tell you to buy cryptocurrency to sort out a problem or protect your money. 

The FTC has dedicated tips to help spot crypto scams which may be helpful if you are tempted to invest.

Copyright © 2022 Robinson & Cole LLP. All rights reserved.National Law Review, Volume XII, Number 160
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About this Author

Linn F. Freedman, Robinson Cole Law Firm, Cybersecurity and Litigation Law Attorney, Providence
Partner

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She provides guidance on data privacy and cybersecurity compliance to a full range of public and private clients across all industries, such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine, and charitable organizations. Linn is a member of the firm's Business Litigation Group and chairs its Data Privacy + Cybersecurity Team. She is also a member of the Financial Services Cyber-Compliance Team (CyFi ...

401-709-3353
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