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We reached out to them multiple times, too. Meanwhile, they hope their stories remind all of us to protect your personal information, including social media passwords, and to be wary of whatever we see online. The BBB suggests these avenues and your local police, too:. Skip to content. With the hype around cryptocurrency, bad actors are in on the action. Stay informed about local news and weather.

Guilford 18 mins ago. Killingly 8 hours ago. Back to Article. The findings resulted in staggering losses and countless fraud schemes. Cryptocurrency is a form of digital money whereby encryption technology can enable anyone anywhere to send and receive payments. Bitcoin, developed in , is the most popular form of cryptocurrency, available for purchase at tens of thousands of Bitcoin ATMs and increasingly accepted as payment in certain retail transactions.

Ethereum is the second most common cryptocurrency and is centrally involved in the increasingly popular non-fungible tokens NFTs , digital assets such as pictures or music that are purchased with cryptocurrency as an investment. Critically, cryptocurrency operates outside the traditional banking system and is not subject to the same protections as bank deposits or credit card transactions.

As the popularity of cryptocurrency continues to rapidly increase, reports from victims of large financial losses to cryptocurrency related scams are skyrocketing, according to the BBB. Many victims report that after purchasing cryptocurrency, they were directed to websites where they had to create an account in order to monitor their investments, according to BBB. The websites are sophisticated, many offering live customer service chats.

Ultimately, they can never withdraw money. Law enforcement and BBB report that romance scammers have begun convincing their victims to invest in cryptocurrency via sophisticated fake apps, disappearing with the money when the victim attempts to withdraw proceeds. BBB Scam Tracker data shows that cryptocurrency also is a commonly requested payment method in fraudulent online sales, advance fee loan scams, employment scams, extortion scams, government impostor fees and more.

Illicit transactions on the so-called dark web are often conducted using cryptocurrency, and it is used in money laundering.

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