Cryptocurrency scams are a growing problem. Over the past several years, Naperville residents have reported losing millions of dollars to cryptocurrency scams. These scams typically appear as investments, business opportunities or payment requests that use digital currency to move money quickly and anonymously. Scammers rely on confusion about how cryptocurrency works and the difficulty of reversing crypto transactions once money has been sent. Understanding how these scams work is the first step to avoid becoming a victim.
These scams are often called “long-term cons” because the fraudsters take time to build trust before suggesting any kind of cryptocurrency investment. They may pose as a romantic partner, friend, celebrity or financial expert to appear credible. Once trust is established, they lure victims with promises of guaranteed or exceptionally high returns with little or no risk.
These scammers frequently reach out through text messages, dating apps, social media or online investment groups. A preferred method to communicate is using private messaging platforms such as WhatsApp and Facebook Messenger.
To make their schemes look authentic, they use fake trading platforms, fraudulent apps or professional-looking websites that appear completely legitimate but are controlled by the criminals to display fake profits and convince victims their investments are growing. To make the ruse seem more credible, they may even allow small withdrawals to encourage further investment.
The con usually ends when the victim tries to withdraw a large portion of their supposed profits. At that point, they’re told they must first pay fees or taxes. Even if they comply, the money is gone for good. In the end, victims lose everything they invested.
Here are some steps you can take to protect yourself:
- Be skeptical of any opportunity that guarantees profits or sounds “too good to be true.”
- Never share your private keys, passwords or recovery phrases with anyone; legitimate companies will not ask for them.
- Use reputable, well-known exchanges and apps, and verify web addresses carefully for misspellings or odd domains.
- Take your time, do independent research, and consider talking with a trusted financial professional before investing.
Remember if an investment seems too good to be true, it probably is. If you think you have been scammed, stop sending money or cryptocurrency immediately and cut off contact with the scammer. Save all records, including messages and any transactions details, and report the incident to the police department and your bank.
For more information on frauds and scams and how to not fall victim to them, visit www.naperville.il.us/ASaferNaper.
Until next month… Stay Aware and Stay Safe.
