In 2023, 16,806 Americans aged 60 and older contacted the Internet Crime Complaint Center to report they had fallen victim to scams. The total loss? A staggering $1,648,455,748.
Sadly, all of these scams had one thing in common: cryptocurrencies.
Cryptocurrency was supposed to be the wave of the future, however, the Federal Bureau of Investigation reported that more than 69,000 total complaints were made about digital currency scams that cost victims of all ages a total of $5.6 billion.
Don’t miss
-
Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month
-
Lock in juicy quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
-
These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes. Here’s how
Unfortunately, crypto scams are easy to carry out because of the complex nature of digital currencies and increasing interest in new investment opportunities. However, older adults can’t afford to lose money to criminals, as doing so could put their retirement savings at risk.
To help retirees protect their hard-earned cash, let’s take a look at some of the most common crypto scams and some techniques seniors can try to avoid falling victim.
Common cryptocurrency scams
Crypto scams take many forms, but an FBI report shows which types of fraud caused the biggest losses. Some of the most common scams include:
-
Fraudulent investments, which caused over $3.96 billion in losses among all victims.
-
Phishing or spoofing, which caused an estimated $9.6 million in financial loss
It’s not surprising fraudulent investments are the leading cause of loss. A growing number of people wanting to diversify into crypto can easily be led astray — especially older adults who may not be familiar with the terms blockchain, which facilitates the development of many digital currencies.
Fraudulent investment could take the form of fake initial coin offerings (ICOs), where scam victims are enticed to buy a currency that ends up having no value. Fake digital wallets are also a common issue, with scam victims falsely believing that they’re storing their digital currency securely when in fact they’re giving their private keys to criminals who steal their coins.
Phishing and spoofing, conversely, are scams where people are tricked into sharing personal or financial details, believing they are interacting with a legitimate company when they actually aren’t.
Unfortunately, older adults may be vulnerable to these common scams if they’re behind on retirement savings and hoping a hot new investment could make it easier for them to catch up.
Read more: Cost-of-living in America is still out of control — use these 3 ‘real assets’ to protect your wealth today, no matter what the US Fed does or says
How older adults can avoid falling prey to fraud
Older Americans, and especially those on a fixed income, simply can’t afford to lose billions to crypto scams. Fortunately, there are techniques retirees can implement to make sure this doesn’t happen to them.
Some ways to avoid being victimized include:
-
Doing independent research before making an investment. Avoid trusting celebrity endorsements or aggressive sales techniques.
-
Watch for false promises. If something seems too good to be true, it very likely is.
-
Don’t rush into buying any cryptocurrency. FOMO, or the fear of missing out is real, but there’s no legitimate investment that pressures you to buy right away.
-
Work with reputable companies. If you want to invest in cryptocurrency, work with a trusted company with a proven track record and consider buying well-known digital currencies like Bitcoin, rather than venturing into more uncertain territory
-
Not giving out personal or financial information. Don’t respond to emails or phone calls by providing your details. Instead, if you get a call from a business that wants your details, hang up, look up the company’s real phone number online, and call back to make sure the first contact was legitimate
Of course, you can avoid cryptocurrency scams entirely by steering clear of the market. Most older adults should err on the side of caution in their investments because of their short timeline. Putting money you may need soon into an asset as volatile as cryptocurrency is just asking for trouble, even if the coin you buy is legitimate.
Instead of risking your investment, stick with a tried-and-true approach of putting your money into the U.S. stock market and, hopefully, watching it grow slow and steady over time.
What to read next
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
