'Money: It's Personal' — Cryptocurrency scams
You may have seen investment opportunities in cryptocurrency that promise high returns with little or no risk, but the U.S. Securities and Exchange Commission is warning people about schemes that are leaving some investors without a cryptocurrency coin.
The SEC is letting consumers know about which red flags to look out for when investing in cryptocurrency trading systems.
The commission said websites that promise you high guaranteed returns between 20 and 50 percent, or sometimes even higher, with little to no risk are more than likely not legitimate. All investments have risk, so you should always question any so-called guaranteed return that you're promised.
Beware any complicated jargon and language that is hard to understand when looking into cryptocurrency trading. Spelling, grammar and typographical errors on these types of websites can also be a red flag that something may be amiss.
If you get an unsolicited sales pitch, it may be part of an investment scheme. The SEC said you should exercise extreme caution if you are solicited for an investment opportunity for which you never asked. Fraudsters may use fake information and pretend to be in the U.S. in an effort to lure you.
The SEC said you should also be cautious of sellers who pressure you into handing over the money quickly without a chance to properly research an investment opportunity.
And finally, if a cryptocurrency investment sounds too good to be true, it probably is.
Remember: investments with higher returns are usually riskier, so it's best to investigate if the investment is worth your while.
For more tips from the SEC on cryptocurrency trading, click here.
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