- Select a language for the TTS:
- UK English Female
- UK English Male
- US English Female
- US English Male
- Australian Female
- Australian Male
- Language selected: (auto detect) - EN
Play all audios:
Cryptocurrencies such as bitcoin, ethereum, solana and hundreds may be touted as an exciting, new commodity. But many people have experienced dramatic losses, some through bogus investment
platforms touted by scammers as sure moneymakers. The Federal Trade Commission (FTC) warns consumers that crypto investing comes with many risks, including scams. WATCHDOG ALERTS Sign up for
biweekly updates on the latest scams. Get Alerts Virtual money, unlike dollars, francs and other currencies, isn’t backed by any government or central bank. Even so, you can use crypto to
buy goods and services, exchange it for U.S. dollars and other conventional currencies on digital markets, and even obtain it at specialized ATMs. Unlike the value of government-backed
money, that of virtual currencies is driven entirely by supply and demand. This can create wild swings that produce big gains for investors — or big losses. Crypto investments are subject to
far less regulatory protection than traditional financial products such as stocks, bonds and mutual funds. Crypto ATMs are favored by criminals for their anonymity and general lack of
oversight. Cryptocurrency scams fall into two categories: investment and payment. The Federal Trade Commission (FTC) reported that investment scams, including cryptocurrency investment
scams, had the highest median losses of all scams reported in 2024. The FBI began Operation Level Up as an attempt to identify and warn victims of investment scams. More than three-quarters
of them were unaware they were being scammed. Video: Cryptocurrency Safety When using cryptocurrency to pay scammers, victims lost more than $1.4 billion in 2024, according to the FTC. Scams
where the victims were directed to use a cryptocurrency ATM have increased nearly tenfold from 2020 to 2023. (AARP is pushing for state laws to regulate this type of ATM and protect
consumers from scams.) TYPES OF CRYPTOCURRENCY INVESTMENT SCAMS USING INVESTMENT PLATFORMS. Criminals lure unwary investors into setting up accounts on an online investment platform with the
promise of fabulous returns. What the investors don’t know is that the platform actually is a Ponzi scheme, in which they’re paid returns out of money put in by other investors.