The FTC reports that since October 2020 there has been more than $80 million dollar in losses due to cryptocurrency investment scams. The most vulnerable groups to these scams are consumers aged 20-39. The FTC found that these groups were five times more likely to lose money. Popular forms of cryptocurrency investment scams include fake investment websites, romance scams, impersonation of government authorities or legitimate businesses, and impersonation of celebrities. The last of those methods is an extremely common scam. Most recently, scammers have been impersonating Elon Musk and holding fake giveaways. The FTC recommends the following consumers looking investing in cryptocurrency: research companies and cryptocurrencies before investing to ensure they’re legitimate, don’t trust anyone promising you quick money or big returns, and to never pay anyone asking for cryptocurrency, wire transfer, or gift cards.
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