ABA Foundation Joins with Government Agencies to Launch New Infographic Warning Consumers about Cryptocurrency Scams

The ABA Foundation, in collaboration with the Federal Bureau of Investigation, Commodity Futures Trading Commission, Securities and Exchange Commission, Internal Revenue Service – Criminal Investigation, Department of Homeland Security, U.S. Secret Service, Financial Crimes Enforcement Network and Financial Industry Regulatory Authority today released a new infographic warning consumers about the increasing threat of cryptocurrency investment scams.

According to new data from the FBI, an estimated $5.6 billion was lost to cryptocurrency-related scams in 2023, a 45% jump from the previous year. As a part of these scams, criminals target victims through texts, dating sites, social media platforms, professional networking channels or other apps. They may build fake profiles or use technology to mask their identity, all while working to establish a connection and trust with their victims. Criminals will then introduce cryptocurrency and coach victims into investing using fake platforms that can look legitimate.

After victims “invest” their money into cryptocurrency, the criminals will manipulate the sites to show fake profitable returns, often encouraging further investment. Ultimately, when the victim goes to withdraw the funds, they may be told there are taxes or fees to pay but even after doing so, they learn there is no money to be withdrawn.

“The number of sophisticated crypto scams is growing, and we appreciate these federal agencies and organizations joining us in educating consumers about the threat they pose,” said Lindsay Torrico, executive director, ABA Foundation. “It’s critical that consumers know the red flags to look out for so that no one loses their hard-earned savings to these skilled criminals. You can protect yourself, if you know what to look for.”

The infographic details five warning signs of cryptocurrency investment scams that consumers should look out for, including: 

• Unexpected contact by an unknown person. 
• Requests to limit contact with financial institutions or advisors. 
• New online friends sharing “can’t-miss” investment opportunities. 
• A sense of urgency to invest more money or pay fees. 
• Misspelled web links.

It also identifies tips for protecting oneself from these types of scams and steps to take if a consumer believes they may be a victim, including, most urgently, filing a report with the FBI Internet Crime Complaint Center at IC3.gov. 

To view the full infographic, please visit: https://www.aba.com/news-research/analysis-guides/crypto-investment-scams