The Better Business Bureau (BBB) is taking aim at cryptocurrency.
The BBB Says to Watch Out for Crypto Scams
To be specific, it is taking aim at cryptocurrency scams, which the company states are more prominent than ever. According to a statement issued by the organization, crypto scams are the second riskiest illicit ventures from late 2019 and on.
One of the tasks set forth by the BBB is to report employment scams. This remains in the top spot and the thing that American workers should be the most worried about. However, illicit methods for obtaining crypto funds is becoming far more prominent, and the BBB is worried that some people are not getting the message. The average customer loss to a crypto scam is $3,000 or more.
Melissa Lanning Trumpower – executive director of the BBB Institute for Marketplace Trust – explains in a new report:
Scammers take advantage of newer technologies and changes in the marketplace. Cryptocurrency scams rose to the number two riskiest scam in 2019 as scammers took advantage of consumers looking to capitalize on these emerging digital assets. Unfortunately, hype and heightened emotion can sometimes prevent consumers from doing their due diligence to investigate offers and exchange sites before making a purchase… Scammers are opportunists. Whatever is in the news or being talked about on social media, they see as an opening. Scammers will also imposter a recognizable and respected organization or brand.
These words hold even more power when one pays attention to the news in the crypto space as of late. Recently, Live Bitcoin News reported that Australia had been home to several crypto scams over the past year, with one organization even using the likeness of actor Hugh Jackman to entice viewers to invest.
Another major scam originated from an alleged call center in the Ukraine. Among the many victims was an elderly woman who lost $3,000 or more to the company after borrowing several funds from her son as a means of taking advantage of what she clearly thought was a unique opportunity.
Be Careful What You Invest In
However, as the old saying goes, if it sounds too good to be true, it probably is, and people need to pay attention to red flags that make themselves evident early. For example, no company in the crypto space can guarantee large returns. Considering just how volatile cryptocurrencies truly are, there is no way to promise returns of any kind. Thus, any venture that says otherwise is probably not real.
The BBB report also take heavy aim at initial coin offerings (ICOs), which have lost some of their popularity since 2018 thanks to the shady circumstances that have followed many of them. Several of the offerings presented result in lost funds for investors after the businesses hosting them ultimately shut their doors permanently.