How to keep your cryptocurrency safe from scammers
More than 72 million Americans use Cryptocurrency in some way.
A new report is shedding more light on just how vulnerable crypto customers are to scams.
Just last year, scammers stole more than $9.9 billion in cryptocurrency.
Cryptocurrencies are on the rise in the U.S. and for good reason.
Ones like Bitcoin and Ethereum have gone up in popularity and helped investors earn some serious money.
But cryptocurrencies are also a hotbed for scammers and it is only expected to get worse.
"There was a report by a blockchain research firm called Chainalysis that found that crypto wallets associated with scams brought in almost $10 billion in 2024, and that number is expected to rise in the future," Investing Expert Sam Taube said.
Nerdwallet's Sam Taube says understanding the potential risks can keep you from becoming a victim.
Many of the scams are not high tech, including phishing, were scammers impersonate a trusted firm to steal payments.
Also, romance scams, where digital con artists build fake relationships to lure victims into investing in crypto and then steal the money.
Another scam that is growing in popularity is what's called a rug pull.
"Sometimes a public figure will launch their own cryptocurrency token and will promote it on social media and draw in a bunch of hype and a bunch of investor interest," Taube said.
The price of the coin rises based on that hype and then the original owners sell their holdings at the maximum price, leaving investors with a worthless asset.
Experts warn these scams are even worse in cryptocurrencies because it's extremely tough to get your money back.
"Cryptocurrency networks don't necessarily have the sort of customer support that banks do. As far as being able to claw back fraudulent transactions," Taube said.
So what can you do to keep your assets safe and prevent being scammed?
Taube suggests investors stick to established cryptocurrencies with a long-term track record.
Research the credentials of the developers behind the crypto and ask questions about the investment.
"One question that's worth asking yourself is why are they asking for the payments in cryptocurrency? Because there's a lot of sketchy answers to that and not a ton of legitimate ones," Taube said.
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