Most of us missed the bitcoin boat in 2009 and we’ve all got our eyes on the next big thing. Crypto is definitely king for today’s get-rich-quick set. But the truth of the matter is that the “next big thing that we’re not allowed to talk about” is probably the same old Ponzi scheme.
You may have seen the recent headline: a Mentor woman lost her life savings of over $660,000 to a cryptocurrency scam after a “wrong-number” text turned into a friendship. She’s not alone. According to the FBI, $5.6 billion was lost in cryptocurrency scams in 2023 alone. If you think it can’t happen to you, those investors thought the same.
Scammers are master manipulators who exploit psychology by tapping into the fear of missing out (FOMO) with urgent, exclusive offers. Crypto’s anonymity, with untraceable wallets and masked IPs, emboldens them further, minimizing risk of exposure. They prepare excuses for setbacks, like market fluctuations or fabricated hacks, while plotting their exit, often disappearing after amassing funds. Each success reinforces their confidence, convincing them they can outsmart regulators and victims alike—until a mistake or overreach catches up.
If you’re not sure about an investment, run it by your investment advisor, a trusted family member, or an investment-savvy friend – a real friend…not one you only know on the internet and certainly not one who is selling exclusive investment opportunities. A legitimate investment should be easy to investigate.
Learn more about cryptocurrency and scams on the Federal Trade Commission website.