Protect Yourself from Cryptocurrency Payment Scams
Cryptocurrency has become a legitimate way to invest and make certain transactions, but it has also become one of scammers’ favorite ways to steal money. Here in Texas, BBB continues to hear from consumers who are pressured into sending Bitcoin or other cryptocurrency after receiving alarming phone calls, text messages, emails, or social media messages.
The scam isn’t the cryptocurrency itself. The scam is the person convincing you to use it.
Scammers prefer cryptocurrency because transactions are difficult to reverse, often anonymous, and once the money is sent, it’s usually gone for good. According to the FBI’s Internet Crime Complaint Center (IC3), cryptocurrency-related fraud continues to be among the costliest scams reported by Americans, accounting for billions of dollars in losses each year.
These scams often begin with someone pretending to represent a trusted organization. They may claim to be from your bank, a government agency, a utility company, law enforcement, or even a well-known business. Others pose as investment advisors or develop online relationships before encouraging victims to invest in fake cryptocurrency platforms.
One growing concern is the use of cryptocurrency kiosks or ATMs, now found in many convenience stores and retail locations across Texas. Victims are instructed to withdraw cash, visit a Bitcoin ATM, and deposit money into a digital wallet controlled by the scammer. The caller often stays on the phone throughout the entire process, creating urgency and insisting the payment is the only way to protect your money or avoid legal consequences. Texas law enforcement agencies have warned that these scams are becoming increasingly common across the state.
“Cryptocurrency is a real financial tool, but no legitimate organization will ever pressure you to use it to solve an emergency,” said Mechele Agbayani Mills, President and CEO of BBB East Texas. “When someone insists your only option is Bitcoin, that’s your cue to walk away.”
BBB provides the following tips to protect you from a cryptocurrency scam:
Slow down. Scammers create urgency because they don’t want you to think. If someone demands immediate payment, stop the conversation.
Verify independently. Hang up and contact the organization using a phone number or website you know is legitimate. Never use the contact information the caller provides.
Use caution when they use unconventional payment methods. Government agencies, banks, utility companies, and legitimate companies will not demand payment through Bitcoin, cryptocurrency, gift cards, or wire transfers.
Be cautious of investment opportunities. Promises of guaranteed returns or pressure to invest quickly are major warning signs. If it sounds too good to be true, it probably is. Never send money (cryptocurrency or otherwise) to someone you’ve never met. This includes online romances, social media contacts, and unsolicited investment advisors.
If you believe you’ve been targeted, cease communication with the scammer immediately. Contact your financial institution if money has not yet been transferred, report the scam to local law enforcement, file a complaint with the FBI’s Internet Crime Complaint Center at IC3.gov, and report it to BBB Scam Tracker. Reporting scams helps law enforcement identify patterns and warn others before they become victims.
Cryptocurrency is a real financial tool, but no legitimate organization will ever pressure you to use it to solve an emergency. When someone insists your only option is Bitcoin, that’s your cue to walk away.
About BBB: Since 1912, BBB has been supporting businesses and consumers in its mission of advancing marketplace trust. BBB is a nonprofit, business-supported organization that sets and upholds high standards for fair and honest business behavior. Most BBB services to consumers are free of charge. BBB provides objective advice, free BBB Business Profiles on more than 5.3 million companies, 11,000 charity reviews, dispute resolution services, alerts and educational information on topics affecting marketplace trust. Visit bbb.org for more information. There are over 100 local, independent BBBs across the United States, Canada and Mexico, including BBB Serving Central East Texas, which was founded in 1985 and serves 19 counties.
