Cryptocurrency Scams

Cryptocurrency scams are on the rise, targeting unsuspecting victims who may not be familiar with how crypto assets work. These scams come in various forms and can be tricky to spot. Here are some common crypto scams to be aware of:

• Fake Crypto Assets: Scammers create fake cryptocurrencies that resemble popular ones like Bitcoin. They hope investors won't notice the difference and invest in their bogus coins.
• Imposter Scams: Scammers pretend to be representatives from legitimate companies and ask for account information under the guise of verification. They use this info to steal crypto assets.
• Mining Scams: Scammers promise high returns on investments in crypto mining operations, but often lack the necessary equipment or capacity to deliver.
• Rug Pulls: Scammers artificially inflate the price of a cryptocurrency, then sell off their holdings, causing the value to plummet and leaving investors with losses.
• Romance/Pig Butchering Scams: Scammers build fake romantic relationships or friendships to gain trust, then convince victims to invest in crypto assets or transfer money, only to disappear with the funds.
• Withdrawal Fee Scams: Scammers promise profits but demand fees for withdrawals, leaving victims with nothing.

Watch out for red flags like pressure to use crypto for payments, fear-mongering tactics to spur investments, requests for personal or financial information, and unsolicited communications from supposed legitimate entities. Never invest more than you can afford to lose and avoid sharing personal or financial information online.

If you've fallen victim to a crypto scam, submit a complaint with the Department of Fraud Protection and Innovation (DFPI) or contact them at (866) 275-2677. Stay updated on the latest scams through resources like the DFPI's crypto scam tracker.