As investing in cryptocurrency (crypto) gains popularity, there are a few points to keep in mind to ensure you are investing in genuine opportunities and don’t fall victim to scammers.
Investment scams are more prevalent than ever, and scammers are capitalising on interest in cryptocurrency in particular,” ACCC Deputy Chair Delia Rickard said. With crypto scams increasing, Moneysmart advises the following:
There are two main types of crypto scams:
- fake opportunities to buy crypto
- using your own crypto to invest or pay for something
Scammers try to trick people into investing in fake opportunities to buy crypto. Watch out for these tactics:
- false promises of very high returns
- fake endorsement from celebrities or government agencies
- people who contact you through social media or text messages
- using dating apps to establish a romantic connection and gain trust
- multiple or constantly changing bank accounts used for transfers
If you are going to give investing in cryptocurrency a try, here are a few things to remember:
- do your research – gain an understanding of how crypto investment works, search for larger more popular exchanges and look for reviews of those exchanges to ensure they are genuine
- don’t click on social media ads or open spam emails relating to crypto investment
- never allow anyone you don’t know to assist you to sign up to a crypto trading platform
- don’t provide anyone with your wallet keys or account information
- never give anyone access to your bank account or card details or allow them access to your computer
To read more about how crypto works, scams and cryptocurrency types, check the Moneysmart website.
