What is cryptocurrency?

Virtual currency, or cryptocurrency, is a kind of electronic money that you purchase and transact with electronically. It’s important to note that cryptocurrency is not the same as regular money. It isn’t issued or backed by any government or central bank. There is also no guarantee it will be accepted by any party. While cryptocurrency features many legitimate benefits and uses, it’s important to be aware of the risks involved.

Cryptocurrency scams to be aware of.

Virtual currencies like Bitcoin, Tether, and Ether have increasingly become targets for hackers and scammers. Virtual currencies are targets for highly sophisticated hackers, who have been able to breach advanced security systems. Some common scams include:

• Fake investment schemes
  In this scheme, individuals are promised huge, guaranteed returns resulting in stolen funds. These often originate from an alarming text or email, fake security alerts online, and even may be further legitimized by phone via someone impersonating a bank representative. Many of these fraudsters will tell victims they must purchase or transfer cryptocurrency to fix the situation.
• Romance scams
  Typically originating through dating apps and sites, a scammer will offer tips on getting started with cryptocurrency to ultimately get the victim to send them funds. The average loss to individuals who fall prey to romance scams related to cryptocurrency is $10,000. 
• Business and government impersonations
  Fraudsters execute this scam by impersonating a legitimate business or government entity and insist that converting funds to cryptocurrency is the only way to solve a problem or prevent fraud. They then trick victims into scanning a code that sends the funds to the scammer.

How to avoid cryptocurrency scams.

• Watch for offers or guarantees that are too good to be true. Only scammers will guarantee profits or big returns.
• Remember that no one legitimate will ever require you to purchase cryptocurrency, even to solve a problem or protect your money. If someone is telling you that is the only solution, they are attempting to defraud you.
• Never mix online dating and investment advice. If a connection on a dating site or app tries to pull you into learning about or investing in cryptocurrency, that is likely a scam.
• Trust your gut. If something seems off, it very well may be. Ask questions, contact your financial institution for guidance, and examine all interactions critically to be sure they’re legitimate.

Do you think you’ve been victim of a scam, fraud, or identity theft?

Call Advia right away to let us know about the situation and we can assist with ways to protect your account and address the incident. We can also help you through the next steps, such as contacting credit bureaus, reporting to the FTC, and monitoring the occurrence.

Learn more tips and resources to safeguard your identity and to protect your financial health.

Have additional questions about the different topics featured in the blog: scams, identity theft, financial relief or about any of our products? Reach out to us directly, visit adviacu.org, or ask Ava, Advia’s Virtual Assistant.