The verdict is in: older adults have become the primary target of deceitful cryptocurrency scams. Drawing in victims with the promise of control and security, opportunistic scammers are profiting from the lack of technologic proficiency rampant in the older generations.
As cryptocurrencies gained traction and public acceptance, influential voices lauded their potential to revolutionize monetary interactions. But where promises of secure, tailor-made transactions aimed to encourage uptake, they have merely opened the floodgates for opportunistic scammers.
The FBI unveiled alarming figures showing Americans lost a staggering $5.6 billion to crypto scams in 2023, a 45% increase from the previous year. The largest age group to file complaints to the Internet Crime Complaint Center was 60 years and older, accounting for 16,806 of almost 70,000 complaints.
Widely reported cryptocurrency scams involve social engineering tactics to deceive potential investors, sometimes even building relationships to lend legitimacy to the con. One common ploy is the ‘investment fraud.’ In this scheme, victims receive a call, text, or email peddling incredible profits in return for cryptocurrency investment. Such exaggerations cater to an audience eager to invest but lacking the requisite knowledge on how to navigate these waters — simultaneously affluent and technologically ill-equipped. This scam resulted in a year-on-year increase of 53%, rising from $2.57 billion in 2022 to $3.96 billion in 2023.
Moreover, scammers are notably, and rather heartlessly, targeting the elderly, who might not be as technologically savvy. A year’s tally of losses for this age bracket reached an alarming $1.6 billion, showing a saddening level of exploitation of the elderly and underscoring the urgency of education across the spectrums of age and technology.
However, the surge in cryptocurrency scams should not dissuade potential investors. First-time cryptocurrency investors must maintain a discerning lens and a healthy dose of skepticism when bombarded with implausible profits and irresistible deals. Examples such as significant and swift investment returns or perfectly timed investment opportunities should raise alarm bells straight away, as credible investments never come with guaranteed gains.
Another important thing to note is the criticality of protecting personal information. Cryptocurrency transactions necessitate limited yet vital information such as private keys, passwords, or wallet information that should certainly never land in the hands of scammers. It’s essential never to share such sensitive details with anyone claiming to be from a legitimate company or crypto exchange.
To better guard against these scams, individuals should consider investing in proactive measures such as antivirus software installed on all devices used for crypto transactions. Ensuring a protective guard against malicious links and potential attacks is a worthwhile insurance policy against insidious cyber threats.
More so, unsolicited approaches should immediately be treated as potential scams, and efforts made to corroborate their claims. Scammers often use social media, dating apps, and professional networking platforms to masquerade as friends, financial advisors, or crypto experts purporting to have insider information.
It is important to realize that, while the world of cryptocurrencies is alluring, it remains a jungle fraught with risks. Therefore, it may be best left to those who are comfortable navigating the intertwining vines of technology, security, and finance.
As the saying goes, “Forewarned is forearmed.” By understanding the intricacies of the crypto universe and the common grounds of scams, potential investors can navigate this space confidently and secure their investments effectively.
