Monson Savings Bank Shares Tips on How to Spot Cryptocurrency Investment Scams
Cryptocurrency has been making headlines as of late. It seems to be gaining much popularity as one of the newest ways to invest. Because cryptocurrency is so new, the experts know a lot about it, but most people do not. The lack of general knowledge around cryptocurrency investments makes it easier for scam artists to trick you into a cryptocurrency scam.
Here are some tips to help keep you from falling victim to a cryptocurrency scam:
Research, research, research!
Make sure to do your homework before you invest. Search online for the company and the name of the cryptocurrency. Including the words “fake” or “scam” in your search should yield reports of rip-offs associated with said company and cryptocurrency. Find independent reviews that you are sure have been written by consumers or trusted experts.
Watch out for “get rich quick” promises
Be leery of cryptocurrency investments that promise a huge return on investment. It is common for crooks to promise quick and easy money, so watch out for such promises when making a cryptocurrency investment.
Don’t fall for “no risk” guarantees
Most investments come with some risk, if someone is guaranteeing you a return on your investment or claims that there is no risk associated with it, it is most likely a scam.
“Act fast” pressure tactics
Many scammers will try to pressure you to “act fast” or “act now.” Don’t let anyone pressure you into investing your hard earned money. Anyone legitimate will not put pressure on you to invest and will respect your choice to think over an investment before pulling the trigger.
Pay by cryptocurrency, wire transfer, or gift card
If you are told you must pay for cryptocurrency via cryptocurrency, wire transfer, or gift card, it’s a scam. These payment methods can be hard or even impossible to trace, so if you are scammed it will be near impossible to recoup your lost money.
The best rule of thumb: trust your intuition! If it seems too good to be true or you don’t feel right about it, don’t invest it in.
Monson Savings Bank is dedicated to staying up to date on all the latest financial trends so we can educate and protect the public. Beware of cryptocurrency scams and read more about financial safety on the MSB Safety and Security Blog.