You are currently viewing Watch Out for This New Crypto Scam, the FTC Warns. Here’s How to Protect Your Investments – NextAdvisor

Watch Out for This New Crypto Scam, the FTC Warns. Here’s How to Protect Your Investments – NextAdvisor

Credit Cards
Financial Goals
Follow Us
Why Cryptocurrency Regulation Is Actually ‘A Good Thing’ for Investors, According to These Experts
How to Donate Crypto to Ukraine, and Ensure Your Coins Are Going to the Right Places
Experts React to Crypto Price Volatility Amid Russian Invasion of Ukraine. Here’s What Investors Should Know
Dollar-Cost Averaging Can Be a ‘Great Strategy’ For Long-Term Crypto Investors. Here’s How It Works
What Happens to Your Crypto When You Die? Make a Plan, Or Lose Your Investment Forever
Coinbase Jumped Into the No. 2 App Store Spot After Super Bowl Ad. Here’s Some Stuff New Investors Should Know
3 Experts Explain Why NFTs Are So Popular, and What They Mean for Crypto Investors
How Crypto Investors Can Avoid the Scam That Captured $2.8 Billion in 2021
How to Earn Free Cryptocurrency With a Crypto Debit Card, and What to Know Before Signing Up
This Popular Crypto Investor Predicts ‘Nasty Downturns’ Ahead. Here’s How She Says to Prepare
Staff Writer
Alex Gailey is a journalist who specializes in personal finance, banking, credit cards, and fintech. Prior to…
There’s a new cryptocurrency scam to watch out for, the Federal Trade Commission warned this week.
The scam is a “new spin” that involves an impersonator, a QR code, and a trip to a store to send money through a cryptocurrency ATM, according to a release posted by the FTC. The scammers are mostly posing as the government, law enforcement, prize promoters, or local utility companies. 
“Here’s the main thing to know: Nobody from the government, law enforcement, utility company, or prize promoter will ever tell you to pay them with cryptocurrency. If someone does, it’s a scam, every time,” said Cristina Miranda with the FTC’s division of consumer and business education in the statement. 

The FTC’s warning comes amid a  sharp rise in cryptocurrency crimes. In 2021 alone, scammers took $14 billion worth of crypto, according to a recent report from blockchain data firm Chainalysis. That’s nearly twice the $7.8 billion taken by scammers in 2020, the report shows.

How Investors Can Protect Their Crypto

If you’ve incorporated crypto into your investment portfolio or are interested in investing in Bitcoin or Ethereum in the future, here are some steps you can take to protect your crypto:
There are some common red flags in crypto — similar to classic money wiring scams and credit card fraud — that you should keep an eye out for. They include:
Another way to protect your crypto is to implement good digital security habits, similar to how you’d handle large sums of cash by putting them in a safe or FDIC-insured savings account. 
Experts say small-scale investors with a few hundred dollars in crypto are probably OK keeping it on a mainstream exchange like Coinbase. But if you have a significant amount of crypto, you can incorporate a crypto wallet for additional safekeeping.
There are two types of crypto wallets: hot wallets and cold wallets.

Hot wallets are used to store crypto online. They are secure, but more susceptible to hacking than cold storage, which is when you store crypto offline on a piece of hardware. Think of cold storage as kind of like a safe in USB-drive format. It’s more secure, but if you forget your password or lose the device, you could lose access to your money forever.
Because crypto held in hot wallets is not FDIC-insured, you’ll want to make sure that whatever platform or wallet you store your crypto in has robust security measures, including:
You only get one unique key to access your wallet, which means you need to be extra careful about not losing your key or having it stolen. Don’t share your private key with anyone, just like you wouldn’t share your Social Security number or your debit card PIN. Maintaining strong passwords that you update regularly and not using the same password for multiple accounts will make you less vulnerable to hacks and scams. 
Make sure to report fraud and other suspicious activity to whatever crypto exchange you used to complete the crypto transaction and to the following bureaus using these links:
If the fraud involves extortion or blackmail, you can also go to ​​the FBI.
Learn all about finances in next to no time with our weekly newsletter.
In your inbox every Tuesday
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Tell us what you think
Did this article answer your questions?
Time is Up!
Let us know what questions you still have about this topic or any others.
Time is Up!
Thanks for your feedback!
Before you go, sign up for our newsletter to get NextAdvisor in your inbox.
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Mortgage Lender Reviews
8 min read
Card Comparisons
5 min read
Mortgage Lender Reviews
7 min read
In the News
8 min read
At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. We do not cover every offer on the market. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors.
Subscribe to our newsletter
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Follow us
© 2022 NextAdvisor, LLC A Red Ventures Company All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use, Privacy Policy (Your California Privacy Rights) and California Do Not Sell My Personal Information. NextAdvisor may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Leave a Reply