And more than half of their reported investment scam losses – $35 million – were in cryptocurrency. Scammers also use online dating sites to sweet-talk people into bogus crypto investments in the name of love. Cryptocurrency investment scams can happen in many ways, but they’re all full of fake promises and false guarantees. Search online for the company and cryptocurrency name, plus “review,” “scam,” or “complaint. Research before you invest. Scammers might post investment sites that look real, but you’ll find you can’t withdraw the money you’ve “invested.” Others pretend to be celebrities – like a would-be Elon Musk – doing giveaways with claims of multiplying any cryptocurrency you send.

Be wary of guarantees. If you pay, there’s usually no way to get your money back. Anyone who says you have to pay by cryptocurrency, wire transfer, or gift card is a scammer. Big promises. Scammers often promise you’ll make money quickly, or that you’ll get big payouts or guaranteed returns. Don’t trust people who say they know a better way. You’ll make money if you’re lucky enough to sell your crypto for more than you paid. They might offer you free money paid in cash or cryptocurrency – but, even if there’s a celebrity endorsement, don’t buy it. Need to report a cryptocurrency scam?

Cryptocurrency has gotten lots of attention as a new way to invest. And younger people are losing big. But here’s an even more striking point: people in their 20s and 30s have lost more money on investment scams than on any other type of fraud. People ages 20-49 were more than five times more likely than other age groups to report losing money on those scams. But here’s the thing: scammers are taking advantage of people’s understanding (or not) of cryptocurrency investments, and how they work. In fact, the FTC’s new data spotlight shows that, since October 2020, nearly 7,000 people reported losses to bogus cryptocurrency investments, adding up to more than $80 million.

Being asked to submit proof of address. Now that you’re ready to purchase Bitcoin, you’ll go through the process of buying however much you can afford. Some just have a “buy” and “sell” button where you specify how much currency you want to purchase or sell off. Scans of additional documents like a passport is also a possibility. The process will be different depending on what exchange you use. Do your research, choose an exchange, set up your account, fund it with some cash, and you’ll be ready to start buying Bitcoin.