Spotting Cryptocurrency Investment Scams: The FTC Checklist

Photo: Edwin.images / Wikimedia Commons, CC BY-SA 4.0

By Cristina Miranda, Division of Consumer and Business Education, Federal Trade Commission (FTC).

Excerpt from “Spotting cryptocurrency investment scams”. The source page is dated November 21, 2023. The checklist below preserves the original wording.

Cryptocurrency has gotten lots of attention as a new way to invest. But here’s the thing: scammers are taking advantage of people’s understanding (or not) of cryptocurrency investments, and how they work. And younger people are losing big.

If you’re thinking about investing in cryptocurrency:

• Research before you invest. Search online for the company and cryptocurrency name, plus “review,” “scam,” or “complaint.”
• Be wary of guarantees and big promises. Scammers often promise you’ll make money quickly, or that you’ll get big payouts or guaranteed returns. They might offer you free money paid in cash or cryptocurrency — but, even if there’s a celebrity endorsement, don’t buy it. You’ll make money if you’re lucky enough to sell your crypto for more than you paid. Don’t trust people who say they know a better way.
• Anyone who says you have to pay by cryptocurrency, wire transfer, or gift card is a scammer. If you pay, there’s usually no way to get your money back.

Read the complete article on the FTC website.

FTC government text republished with attribution under its website reuse policy. Advice Me is not affiliated with or endorsed by the FTC.

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Related guides from Advice Me

• Start Here: Bitcoin for European Beginners — follow the basics, fees and safety reading path.
• Buying Bitcoin Without Getting Scammed — provider checks, warning signs and reporting steps.
• Bitcoin account security and custody — practical checks before funding an account.

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