The Better Business Bureau and the Federal Trade Commission have a warning for consumers, “be careful and do your homework before you invest in cryptocurrency, specifically when clicking links advertising through social media.”
BBB data shows that cryptocurrency scams most commonly originate on Facebook and Twitter, with the FTC noting that 25% of crypto fraud reported in 2021 began on some form of social media.
Stephanie Garland of the Better Business Bureau has this advice if you’re considering investing. “If you don’t know about anything, whether it’s bitcoin mining, cryptocurrency, gold, stocks, mutual funds. If you don’t know what it is well enough to talk about it, then you shouldn’t invest in it.”
Cryptocurrency accounted for the second-highest scam losses reported to the Federal Trade Commission in 2021, with losses of $750 million. Scam Tracker reports to the Better Business Bureau tripled between 2019 and 2021 and reported losses tripled over the last two years.