FBI Cryptocurrency Investment Fraud
Cryptocurrency investment fraud is a term used to describe any type of fraudulent activity related to investments in cryptocurrencies. The FBI has been actively investigating and prosecuting cases involving cryptocurrency investment fraud since 2017.
Types of Crypto Scams
Scammers have created numerous types of scams targeting investors interested in digital currencies, including:
•Ponzi schemes – This type of scam lures victims with promises of high returns on their investments and uses funds from new investors to pay off existing ones, while taking the rest for themselves.
•Fake ICOs (Initial Coin Offerings) – Fake or deceptive ICOs are often promoted as quick ways to make money quickly by investing before prices increase dramatically. Unfortunately, these companies usually don’t exist or never deliver what they promise.
•Phishing emails/websites– Phishing attacks involve scammers sending emails that appear legitimate but contain malicious links designed to steal personal information such as passwords or financial account numbers from users who click them. They may also use fake websites claiming to be associated with popular exchanges in order attempt access user credentials .
Preventing Crypto Fraud
Here are some tips for avoiding crypto-related scams:
1) Before making an investment decision, research the company thoroughly––including its products/services, team members, legal documents etc., so you can identify red flags like unrealistic promises about future growth potential . Investigate reviews online too; if something doesn’t seem right then trust your gut and stay away! 2) Never share sensitive information like usernames/passwords via email — this could result in hackers accessing your accounts without permission 3) Use two factor authentication whenever possible 4 )Be careful when downloading mobile wallets , only install apps directly from official app stores 5 )Only invest money you can afford lose 6 ) When dealing with new exchanges always double check whether they’re registered with appropriate government agencies 7 ) Don’t make fast decisions—take time researching different options available 8 ) If it seems too good be true then it probably is 9 ) Consider using a dedicated hardware wallet 10) Stay up-to date on news developments related cryptocurrencies 11). Always contact authorities if find yourself victim crypto fraud
