It is tempting to get into the world of cryptocurrency investments. News items of early investors banking millions of dollars fuel the temptation.

But it is an investment strategy that is fraught with fraud, so investors beware.

According to the Federal Trade Commission (FTC), from the beginning of 2021 to the present day, more than 46,000 people have lost more than a billion dollars (that’s with a “b”) in crypto scams.

The FTC’s data spotlight shows that most cryptocurrency is lost to investment scams, that start with online apps or social media where the scammers promise that if you invest, you will make more money very quickly. Old trick, new currency.

The FTC states that to “steer clear of crypto cons:

  • Know that only scammers guarantee big payouts or fast, easy money. These lies get you to “invest” — but you won’t get any of your money back.
  • Don’t mix online dating and investment advice. If a new online love interest wants to show you how to invest in crypto, it’s a scam.
  • Spot the scammers asking you to send crypto. Real companies and government agencies will never tell you to buy cryptocurrency to sort out a problem or protect your money. 

The FTC has dedicated tips to help spot crypto scams which may be helpful if you are tempted to invest.

Photo of Linn Foster Freedman Linn Foster Freedman

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chair’s the firm’s Data Privacy and Security Team. Linn focuses her practice on…

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chair’s the firm’s Data Privacy and Security Team. Linn focuses her practice on compliance with all state and federal privacy and security laws and regulations. She counsels a range of public and private clients from industries such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine and charitable organizations, on state and federal data privacy and security investigations, as well as emergency data breach response and mitigation. Linn is an Adjunct Professor of the Practice of Cybersecurity at Brown University and an Adjunct Professor of Law at Roger Williams University School of Law.  Prior to joining the firm, Linn served as assistant attorney general and deputy chief of the Civil Division of the Attorney General’s Office for the State of Rhode Island. She earned her J.D. from Loyola University School of Law and her B.A., with honors, in American Studies from Newcomb College of Tulane University. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.