14 October 2024

New Infographic Highlights Rising Cryptocurrency Investment Scams

The ABA Foundation, along with federal agencies, has released an infographic to warn consumers about the rising threat of cryptocurrency investment scams, highlighting key warning signs and protective measures.

The ABA Foundation, in partnership with several federal agencies including the FBI, CFTC, SEC, IRS-CI, DHS, U.S. Secret Service, FinCEN, and FINRA, has unveiled a new infographic aimed at educating consumers about the alarming rise in cryptocurrency investment scams.

Recent statistics from the FBI reveal that in 2023, approximately $5.6 billion was lost to scams related to cryptocurrency, marking a staggering 45% increase from the previous year. Scammers are increasingly targeting victims through various channels such as text messages, dating apps, social media platforms, and professional networking sites. They often create fake profiles or employ technology to conceal their identities, all while attempting to build trust with their targets. Once a connection is established, these criminals introduce cryptocurrency investments, guiding victims to use fraudulent platforms that appear legitimate.

After victims invest their money, scammers manipulate these platforms to display fictitious profitable returns, often pressuring victims to invest even more. When victims attempt to withdraw their funds, they are typically informed of supposed taxes or fees that need to be paid. Even after complying, they discover that their money is unreachable.

Lindsay Torrico, executive director of the ABA Foundation, stated, “The rise in sophisticated crypto scams is concerning, and we are grateful for the collaboration of federal agencies and organizations in educating consumers about these threats. It is crucial for consumers to recognize the warning signs to prevent losing their hard-earned money to these adept criminals. Awareness is key to self-protection.”

The infographic outlines five key warning signs of cryptocurrency investment scams that consumers should be vigilant about:

  1. Requests to limit communication with financial institutions or advisors.
  2. A sense of urgency to invest additional money or pay fees.

Additionally, it provides essential tips for safeguarding oneself against such scams and outlines steps to take if a consumer suspects they have fallen victim, with the most critical action being to file a report with the FBI Internet Crime Complaint Center at IC3.gov.

For the complete infographic, visit: ABA Foundation Infographic on Cryptocurrency Scams

The American Bankers Association represents the nation’s $23.9 trillion banking industry, which includes small, regional, and large banks that collectively employ around 2.1 million individuals, safeguard $18.8 trillion in deposits, and extend $12.5 trillion in loans.

Through its leadership and national initiatives, the ABA’s Community Engagement Foundation (operating as ABA Foundation), a 501(c)(3) organization, aims to enhance financial education for individuals of all ages, address affordable housing issues, and promote community development, ultimately improving the well-being of customers and communities.