What is cryptocurrency? Cryptocurrency is an encrypted data string that indicates a unit of currency. Cryptocurrencies are not issued by governments or financial institutions, nor are their values managed by a central authority. These units of currency can be bought, sold, and transferred.
While this new form of currency is exciting for many, unfortunately it presents a new avenue for scammers. Recent reports also shows that these cryptocurrency scams impact the LGBTQIA+ community at a higher rate.
A lot of these scams start with the promise of making a lot of money, but first you must send payment via cryptocurrency. The FTC warns that only scammers demand payment via cryptocurrency, while making the argument that they need the payment in advance to pay for something or to protect your existing money.
If you encounter any suspicious activity involving cryptocurrency, make sure to report it to the FTC at: https://reportfraud.ftc.gov/#/1
You can also click here to check out the FTC’s free publications regarding scams and how to avoid them.