August 17, 2022

ROCKFORD (WREX) — Scams involving a new and trending type of financial investment is causing concern for many people with cryptocurrency.

A study from the Better Business Bureau found a rise in fraud and financial losses related to cryptocurrency scams.

The rise in cryptocurrency is concerning, according to Dennis Horton, Director of the Rockford Regional Office of the BBB, because there is not much that is well-known about the digital payment system.

“This has created a fertile environment for scams,” Horton said. “In fact, a virtual tug of war exists between the legitimate and fraudulent use of cryptocurrency.”

According to data just released from the BBB, complaints involving cryptocurrency doubled in 2021 and tripled from 2019. The BBB says the complaints in 2021 total $8 million in losses in scams involving cryptocurrencies.

An important aspect of cryptocurrency is that it operates outside of the traditional banking system, and is therefore not subject to the same protections as bank deposits or credit card transactions.

“Scammers will ask people to invest in cryptocurrency or ask them to pay with cryptocurrency,” Horton said. “Cryptocurrency scams climbed from #7 to #2 on BBB’s list of riskiest scams posing the most significant risk to consumers because of the high rate of people being susceptible to these scams and the biggest losses of…

Read more…

Leave a Reply

Your email address will not be published.