RALEIGH, N.C. – As cryptocurrency grows in popularity, scams involving the digital currency are rising dramatically, according to the Better Business Bureau.
What You Need To Know
- Cryptocurrency scams grew from seventh riskiest, to second riskiest of all scam types in 2021, according to a new report from the Better Business Bureau
- Crypto scammers pocketed $14 billion in 2021, according to blockchain analytics firm Chainalysis
- For the first time, President Joe Biden signed an executive order urging the Federal Reserve to explore cryptocurrency regulations
A new study from the BBB’s 2021 Risk Report shows cryptocurrency scams rose from seventh riskiest to number two, citing 66% of people targeted lost an average of $1,200. The annual report analyzes scams reported to the BBB.
Last week, President Joe Biden signed an executive order urging the Federal Reserve to explore regulations on the previously unrestricted digital currency.
The BBB’s Nick Hill says people can protect themselves by growing their knowledge on the topic.
“A lot of scammers come after people because they think they don’t know how cryptocurrency works,” Hill said. “So, if you feel like you’re going to invest in crypto, it’s best that you gain some knowledge of it first.”
“These cryptocurrency scams typically work when scammers reach out to you on social media or another form of communication, promising this big investment with great returns and low risks, but that's going to be a huge red flag,” Hill said.
Here at the top five scams in the 2021 BBB Scam Tracker Risk Report:
1. Online purchases
4. Home Improvement
Overall, scammers pocketed a record $14 billion in cryptocurrency in 2021, according to blockchain analytics firm Chainalysis.