Top Cryptocurrency Scams and How to Avoid Them
Cryptocurrency is growing fast, and so are the scams that come with it. Whether you’re curious about digital assets or already investing, it’s important to understand how crypto scams work and how to protect yourself.
At Scott Credit Union, we’re committed to helping our members and communities stay informed and secure. Here’s what to know, what to watch for, and how to stay a step ahead.
What Is Cryptocurrency?
Cryptocurrency is a type of digital or virtual money that uses cryptography for security and operates outside of traditional banks. It’s stored in online wallets and traded on blockchain networks.
Popular examples include Bitcoin, Ethereum, and Litecoin. Because crypto isn’t regulated in the same way as regular financial systems, it’s a common target for scammers.
What Are Cryptocurrency Scams?
Crypto scams are designed to trick people into sending or investing money under false pretenses. Scammers often target users through social media, fake websites, phishing emails, or even online relationships.
Common Types of Cryptocurrency Scams
- Imposter Scams: Scammers pose as trusted figures like celebrity investors, government officials, or even financial representatives to gain trust and request crypto payments.
- Phishing Attacks: Fake emails or websites attempt to steal your crypto wallet keys or personal information.
- Fake Exchanges and Wallets: Fraudulent platforms mimic real services to steal deposits or information.
- Pump-and-Dump Schemes: Scammers artificially inflate the value of a coin to attract investment, then sell off and disappear.
- Romance Scams: Con artists build relationships online and eventually convince victims to send cryptocurrency.
How to Protect Yourself
- Verify Before You Invest: Always double-check the legitimacy of websites, exchanges, and individuals.
- Don’t Share Your Wallet Keys: Treat your private keys like your bank PIN. Never share them.
- Use Trusted Platforms: Only use well-known, secure wallets and exchanges.
- Watch for Red Flags: Guarantees of high returns, pressure to act fast, or requests to pay in crypto are all warning signs.
- Monitor Your Accounts: Regularly check your SCU accounts and crypto wallets for suspicious activity.
How Scott Credit Union Helps Protect Members
Even though we don’t handle cryptocurrency transactions directly, SCU is here to support your financial safety. Our fraud protection tools, security resources, and member support team are ready to help if something doesn’t seem right. For the latest alerts and safety tips, visit scu.org/security.
How to Know if You Have Been Targeted
If you think you’ve been targeted by a crypto scam:
- Report the incident to the Federal Trade Commission (FTC) at reportfraud.ftc.gov.
- Contact your crypto wallet provider.
- Reach out to Scott Credit Union for assistance and fraud prevention guidance.
Stay Informed With SCU
Protecting your finances starts with awareness. Visit scu.org/security to explore our fraud prevention tools and helpful videos from our Security Playlist on YouTube. Follow SCU on social media for ongoing security tips, updates, and resources to help you bank smarter and safer.
SCU is always here to help with guidance, tools, and support to keep you and your money protected.
