AARP Hearing Center
In 2024, more people had money stolen from them through investment fraud than to any other type of scam, with reported losses totaling $5.7 billion. That’s about $1 billion more than the previous year and is only a fraction of actual losses because fraud is notoriously underreported.
Investment scams aren’t new, but the latest spin involves cryptocurrency schemes that promise big returns that result in financial devastation. Here’s what to know about this type of investment fraud.
How it works:
- You receive a text you think was sent in error—such as a message about dinner plans or a ride to the airport.
- Wanting to be polite, you reply to let the sender know they have the wrong number.
- That single response can spark an ongoing conversation that, over time, turns into a trusted relationship that eventually leads to an opportunity to learn how to invest successfully in cryptocurrency.
What you should know:
- Scams like these rely on building trust relationships slowly, and teams of scammers work around the clock to keep their targets engaged.
- They eventually promise “can’t miss” investments in cryptocurrency and often allow their victims to withdraw some gains early on to add credibility to the scheme.
- Victims only realize they have been defrauded when they try to cash out their earnings and face steep taxes or other fees, and then the ‘friend’ disappears.
