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Better Business Bureau warns of cryptocurrency scams

Experts say scammers are especially targeting young people.

ATLANTA — President Joe Biden recently signed an executive order calling on the federal government to examine the risks and benefits of cryptocurrency.

If you are getting involved in the rising boom, the Better Business Bureau wants you to be aware of scammers who are looking to steal your money, especially on social media.

"Scammers are using social media and other means to promise investment opportunities with great returns and low risks, which is a huge red flag," Melissa Lanning Trumpower, executive director of the BBB Institute for Marketplace Trust, said. "We received many reports of people being targeted on a variety of social media platforms after their friends' accounts were hacked."

RELATED: Should the Federal Reserve have its own digital currency? Biden order explores the possibility

According to the 2021 BBB Scam Tracker Risk Report, scams related to cryptocurrency jumped from the seventh riskiest scam in 2020 to second riskiest in 2021.

"People are giving their hard earned money thinking I'm investing in something and expecting something in return," Simone Williams, a spokesperson for the BBB Serving Metro Atlanta, Athens & NE Georgia, explained. "And then that person disappears or doesn't answer messages and that money is gone."

Williams said scammers are especially targeting young people, and the financial loss when succumbing to such scams can be significant with the BBB reporting 66% of those targeted by this scam losing money with a reported median dollar loss of $1,200. 

Tips for avoiding cryptocurrency scams: 

  • Be very wary of anyone offering to make you quick money with little risk.
  • Scammers can pretend to be your friend on social media by hacking into their accounts. Always check directly with the person before clicking a link or paying them money.
  • If somebody claims to be a broker, check them on FINRA's BrokerCheck tool.
  • Never use an online payment system to pay somebody you don't know.
  • Search BBB Scam Tracker to see if another person has reported the person or business as a scammer.

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