Authorities in Los Angeles County are warning the public about cryptocurrency-related scams and advising them to do their research on prospective businesses before investing. While several ICOs have been used to fund legitimate businesses, there are also many scams out there that target investors with empty promises of sky-high returns on risky investments in up-and-coming crypto ventures. It’s important for consumers to learn how to spot these kinds of red flags so they don’t get scammed out of their hard-earned money and personal data by scam artists online and in person. If you are going to start investing in Bitcoin and other big cryptocurrencies, join Chain Reaction now!
Bitcoin and other cryptocurrencies have been making headlines recently because they are becoming more mainstream. Yet, authorities warn that there are scams lurking in the shadows. To make sure that you’re not a victim, here are some red flags to look out for:
– If someone tells you it’s too late to invest or if they refuse to speak with you until after a certain date
– If someone offers guaranteed returns with no risk or never seems to answer your questions completely
– If you can’t find any information about the company or person offering the investment
– If the person soliciting your business is pressuring you and doesn’t take no for an answer
What are cryptocurrency scams?
Cryptocurrencies are digital currencies that use encryption techniques for their transactions. The biggest cryptocurrencies are Bitcoin, Ethereum, and Litecoin. A cryptocurrency scam is a type of fraud that involves the use of cryptocurrencies to swindle or cheat people. Often, these scams promote phishing schemes or fake initial coin offerings (ICOs). If you’re not careful with your cryptocurrency transactions, it can be easy to fall victim to a scammer who wants to steal your coins and information.
– Be wary when receiving an email with instructions on how to claim a prize that you didn’t win in a lottery. These emails will typically ask for your personal information before giving you anything in return.
How to avoid cryptocurrency scams
If you’re considering investing in cryptocurrency, here are some things you can do to avoid being scammed:
-Do your research. Research the coin and any company behind it to make sure they are legitimate, and that they have a strong background or history.
-Only invest what you can afford to lose. If the investment does not go as planned, then you will only be out a small amount of money, rather than your entire savings.
-Keep an eye on the company’s website and social media pages for any changes or updates in regards to their ICO launch date, roadmap, or token distribution.
What to do if you’ve been scammed?
The Los Angeles County Sheriff’s Department warns cryptocurrency investors to be on the lookout for scams. Be on high alert and do your research before investing in any type of currency, said Detective Rick Ishitani. Fraudsters have been known to solicit money by pretending to sell or purchase bitcoin and other types of cryptocurrencies, all without any intention of following through with their end of the bargain. The department recommends that you only invest what you can afford to lose, not share personal information with strangers and make sure you know who is on the other side if you’re buying or selling cryptocurrency.
Resources
The Los Angeles County District Attorney’s office is warning the public about fraudulent investments in cryptocurrency, which are part of an increase in these types of scams across California. A statement by the DA’s office provides a red flag list for identifying potential cryptocurrency scams:
-No physical address for the business or individuals running it.
-A website that does not list an email address, physical address, or phone number.
Conclusion
Authorities are warning the public about cryptocurrency scams. Be aware, it’s not just your credit card that can be compromised. You may also be giving away personal information if you’re not paying close attention to where you enter your private key codes or passwords.
This is why it’s essential to have a reliable wallet and keep your private key and password secure, offline and out of reach from anyone but yourself. A hardware wallet like Trezor is an excellent option for storing these valuable details in a safe place. If you do happen to become a victim of fraud, report it immediately so that other people don’t fall victim to the same scam as well.
