Harrisburg, Pa. (WHTM)- According to new data from Federal Trade Commission (FTC), in the last 15 months U.S. consumers have reported losing more than $1 billion to fraud involving cryptocurrencies.
AARP says cryptocurrencies, such as Bitcoin, Ether, and many others, exist as digital code. It can be used to buy things but it has gained the most attention as an investment, publicly traded on online exchanges.
Unlike traditional money, cryptocurrencies are not backed or regulated by governments,
and they are subject to rapid swings in value.
AARP says nearly half of the people who lost money in a crypto con say it started with an ad, post or message on Instagram or Facebook.
Red flags for crypto fraud:
“Guaranteed” returns. Be skeptical of people who promise big windfalls.
Don’t fall for demands for crypto payments.
Legitimate businesses and government agencies will not require you to fork over crypto to sort out a problem.
Don’t mix love and crypto.
Be wary if a new romantic interest starts pushing you to invest in crypto or asks you for money in that form.