How to Identify and Prevent Crypto Investment Scams

The world if cryptocurrency offers plenty of potential for investors, but it has also become a playground for scammers. One common type of scam is known as "pig-butchering," and it targets people looking to make investments, luring them into fraudulent crypto schemes. These scams have cost unsuspecting individuals billions of dollars in recent years. Keep reading to learn more about crypto investment scams and how to protect yourself from getting scammed.

How Do Crypto Investment Scams Work?

Crypto scammers often hide behind fake identities, posing as friendly individuals looking to strike up a conversation. Whether it’s through social media, dating apps, or professional networking platforms, they create fake profiles designed to build trust. They will show interest in friendships, romantic relationships, or business deals—with the ultimate goal of steering the conversation toward cryptocurrency.

Once trust is established, scammers introduce fake investment platforms, often mimicking legitimate crypto exchanges. These sites or apps look real, but they are rigged to show fake profits. At first, you might be able to make small withdrawals, but it’s all part of the trap to encourage larger investments. And when the time comes to withdraw more significant sums, you are hit with fees or taxes—and in the end, your funds are gone.

Red Flags to Watch Out For:

• Unexpected Contact: Be cautious if someone you don’t know reaches out to you about investment opportunities.
• Pressure to Act Fast: Scammers often create a sense of urgency to push you into quick decisions.
• Unrealistic Promises: Remember, there’s no such thing as a “guaranteed” or risk-free investment.
• Moving Conversations to Encrypted Messaging Apps or Unfamiliar Platforms: This is a tactic to isolate you from potential help.

How to Protect Yourself:

If you are interested in exploring crypto or other investments, remember to:

• Do thorough research on any platform or app before
• Be skeptical of anyone who offers “too good to be true” returns or puts pressure on you to make fast decisions.
• NEVER send money to someone you’ve only met online, and avoid investments based solely on their recommendations.
• Stay away from unknown apps or services that claim they can recover lost funds.

What To Do If You Have Been Scammed:

If you believe you have fallen victim to a crypto investment scam, it’s crucial to act quickly:

1. Stop sending money
2. Change passwords and security questions.
3. Contact your bank for assistance (info for Academy Bank below).
4. Keep records or communications related to the scam.
5. Report the incident to the FBI Internet Crime Complaint Center (IC3), the Federal Trade Commission (FTC) , and the Consumer Financial Protection Bureau (CFPB).

Fraud Resources at Academy Bank:

Your security comes first at Academy Bank. We’re here to keep you updated on emerging fraud tactics, and our team is always available to help if you notice anything suspicious. Let’s stay one step ahead and safeguard your financial future together!

If you bank with Academy Bank and suspect have been targeted in an investment scam, here’s how to respond:

• Option 1: Log into Mobile or Online Banking and send a secure message through the chat.
• Option 2: Visit academybank.com and click on the chat bubble in the bottom right corner. Request to speak to a banker, available Monday - Friday, from 8:00 AM - 10:00 PM, Central Time; AND Saturday, 9:00 AM - 5:00 PM, Central Time.
• Option 3: Call the Academy Bank Client Care line at 877-712-2265, Monday - Friday, 8:00 AM - 7:00 PM, Central Time.

FINANCIAL EDUCATION: Scams & Fraud; Preventing ID Theft; Reporting ID Theft; Fraud Alerts & Freezes; Mobile Security Tips; Visa Card Security.

SCAM-SPECIFIC RESOURCES: General Cybersecurity; SIM Swapping Scams; Phishing Emails; Phone Scams; Text Scams; Pig-Butchering Scams; Elder Financial Abuse; Business Fraud; Tax Return Security.

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