Tyler was fascinated with the huge rise in bitcoin and other cryptocurrencies. He's recently been using his phone application to invest in small portions of cryptocurrencies with some of his leftover money from his allowance and his paper route. Although he was seeing some positive returns, he wanted more. When on social media one day, Tyler saw a post by a popular influencer. The post mentioned they would triple anyone's cryptocurrency in one week with their proven method. Tyler was ecstatic and followed the steps to send the cryptocurrency to their account. Tyler waited patiently, but the week went past, and he didn't see his returns or original investment. The influencer later posted that their account had been compromised, and the criminal had posted the message about this cryptocurrency scam. Tyler was embarrassed and chose not to tell his parents or authorities.
Did you spot the red flags?
- The influencer claimed they could triple any investment in one week.
- Tyler was too eager to make quick returns on his investments.
- Tyler's embarrassment after falling for this scam led him to not take any additional action.
What you should know about this scam
This was an example of a cryptocurrency multiplier scam. Scammers lure in investors who want faster returns by promising to multiply any deposit made. But more often than not, these deposits go right into the wallet of a scammer with no intention of returning a cent
These types of scams are very popular on social media platforms. Scammers have been known to impersonate celebrities, influencers, and popular investors to push their scams. Additionally, as seen in Tyler's case, real accounts can be compromised and used to push out these scams.
Teach children and teens in your life about the pros and cons that come with investing. Everyone should be aware that scams and other such fraud can, and should, be reported to local authorities or consumer protection agencies. It is possible that some, or all, of the stolen money, can be returned.