AG Nessel shares tips on avoiding cryptocurrency scams

Updated: Jun. 21, 2021 at 12:02 PM EDT
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LANSING, Mich. (WILX) - Michigan Attorney General Dana Nessel, Michigan Department of Licensing and Regulatory Affairs (LARA) Director Orlene Hawks, and Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox are issuing a consumer alert to help Michiganders protect themselves when using (or investing in) cryptocurrency instead of currency issued by the U.S. Treasury.

“As cryptocurrency popularity grows, so will the prevalence of scams,” Nessel said.

The alert explains basics about digital currency, virtual currency and cryptocurrency.

According to a recent article from the Wall Street Journal, the value of the total cryptocurrency market is more than $2 trillion, up from $260 billion a year ago.

Some popular coins include:

  • Bitcoin
  • Polygon
  • Ethereum
  • 1inch
  • Cardano

Here are some tips if you are interested in investing in cryptocurrency:

  • Research before you invest and search online using the company name as well as the cryptocurrency name; add “review”, “scam”, or “complaint” to your search.
  • Never wire or provide any credit card or bank account information until you check out the investment first.
  • Before using a digital payment app, such as Venmo, make sure you understand the terms and conditions of using and transferring different currencies through the app.
  • Be careful when you see a celebrity endorsement.

“As with any type of potential investment, if a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost,” Hawks said.

Copyright 2021 WILX. All rights reserved.

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