Fraud Friday: How to avoid falling for cryptocurrency scams

COLORADO SPRINGS, Colo. (KKTV) – Experts with AARP ElderWatch say cryptocurrency scams have skyrocketed in the last couple of years.

These scams are commonly presented as offers on social media, like Facebook and Instagram, where the scammer poses as a cryptocurrency investment expert. The scammer then claims to be able to grow someone’s investment, sometimes by two, three, or even four times the investment amount.

“This is all smoke and mirrors,” said Mark Fetterhoff with AARP ElderWatch. “What scammers are trying to do with these situations is get you to trust them. They might even put up a fake platform on a website to make it look like your investment is growing exponentially, when in reality they pocket the money and are going to ask for more.”

A second common type of cryptocurrency scam involves a person posing as a government employee or something similar, telling the potential victim they have a payment due which can only be accepted as cryptocurrency.

“Many times scammers are sending people to a cryptocurrency ATM or a Bitcoin ATM in our community. These exist at gas stations, grocery stores, and drug stores,” Fetterhoff said. “This is 100% a red flag and you should disengage with that person immediately.”

Fetterhoff says the best way to protect yourself from cryptocurrency scams is to not engage with the sender.

Cryptocurrency scammers are often located overseas, which is why the FBI is the best agency to report these scams to. Click here to report a cryptocurrency scam to the FBI’s Internet Crimes Complaint Center.

To report fraud or financial exploitation to AARP ElderWatch, you can call 1-800-222-4444 and select option 2, or click here for more information.

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