Cryptocurrency may have begun as an obscure digital experiment, but these days it's a mainstream investment.
According to Security.org, around 65 million American adults own cryptocurrencies, and two-thirds of people who already own cryptocurrencies intend to keep building their stockpiles. But some of the things that make it popular — decentralization, privacy, and limited government oversight — make it a lucrative business for scammers.
If you own cryptocurrency or are interested in purchasing some, watch out for some of these major red flags:
* Demands for payment in cryptocurrency. If you receive a demand for payment in cryptocurrency, especially in advance, don't pay. A legitimate business, government agency, or brokerage will never even ask.
* Investment scams. An "investment manager" might contact you with an irresistible one-time opportunity that requires an up-front payment with crypto, and they might even have a website with an "investment account," but it's all sleight of hand while they take your money and run.
* Online dating scams. Even modern technology isn't immune to a classic romance scam. If someone charms you on Bumble and then tries to ask you for a cryptocurrency payment or if you'd like to invest, it's a scam.
* Celebrity scams. One man lost $10,000 after an AI-generated Elon Musk talked him into a fake crypto investment, complete with a fake website that showed his investment growing to $50,000, according to DigWatch. Be wary of any celebrity-endorsed cryptocurrency investments, and remember that Brad Pitt will never, ever contact you personally to ask for Bitcoin.
* Corporate impersonators. Fraudsters will pose as big companies like Amazon or FedEx in calls, emails, and text messages to warn you about cybersecurity risks, bank fraud, or other potentially serious problems — and then request a cryptocurrency payment to resolve the issue.