How to avoid being a victim of a crypto scam – FOX13 News Memphis

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MEMPHIS, Tenn. – As the popularity and price of Bitcoin, Dogecoin, and Ethereum increase, so do the number of scams associated with these digital currencies.

The Better Business Bureau of the Mid-South said cryptocurrency investment scams are on the rise and there are a number of ways scammers can defraud people of their money.

Already this month, the Mid-South BBB has had nine reports of scams associated with cryptocurrency.

FOX13 spoke with a victim who said he lost nearly $1,000.

“It looked sketchy, but for now, I was trusting the word of a friend,” said Darnell Stewart of Memphis.

Stewart received messages on Instagram from a friend he trusted. His friend told him that he was investing in a business using bitcoin and making good profits.

“When I messaged him, I was like ‘Is this legit? Is this something I should invest in?’ He was like ‘Yeah, you should totally go for it.'”

Following what he thought was his friend’s advice, Stewart invested money in the business, which turned out to be a scam.

“When I finally reached my friend on the phone, I was like, ‘Hey man, what’s the deal? You told me this company was legit and it’s not. He’s like “Yeah, I lost control of my account. You’re not talking to me.

As cryptocurrencies like bitcoin, dogecoin, and others grow in popularity, scammers are taking advantage.

“It’s a bit like the wild Wild West. There just aren’t a lot of regulations about it,” said Daniel Irwin of the Mid-South BBB.

Irwin said they also see people impersonating celebrities and billionaires online to trick people into investing in fraudulent companies.

“Whenever the pitch claims that investing is risk free with guaranteed profit, stay away,” Irwin said. “It’s going to be a scam.”

Irwin said doing some research before investing can go a long way.

As for Stewart, he uses his misadventure to warn others.

“Even if it’s from someone you know on social media, maybe wait to get the info face-to-face because social media can be hacked,” he said.

Irwin said you can tell if a company is legit by looking at the Commodities Future Trading Commissions website.

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