Since 2020, the Better Business Bureau (BBB) has documented over 4,000 investment scam reports, with a notable peak in 2023.
These scams, increasingly blending elements of romance and cryptocurrency fraud, have led to a dramatic rise in median losses, escalating from $1,000 in 2021 to nearly $6,000 in 2024.
Fraudsters employ long-term confidence tactics, building romantic or platonic relationships to gain the trust of their victims before defrauding them of substantial amounts.
Investment scams often involve obscure cryptocurrencies and complex schemes designed to evade scrutiny. Scammers use deceptive practices such as high-pressure tactics and guaranteed returns to lure victims.
They target individuals with existing investments and retirement accounts, exploiting the often misunderstood world of cryptocurrency to cover their tracks.
The BBB's report underscores that while many scams originate in Southeast Asia, fraudsters are increasingly operating from other regions due to heightened anti-fraud measures in their home countries.
The report highlights a survivor story from St. Louis, where a victim lost $400,000 due to scammers posing as legitimate cryptocurrency advisers.
To protect yourself, be cautious of unfamiliar cryptocurrencies, avoid sharing your wallet information, and steer clear of investments that promise effortless high returns.
Verify the registration and licensing of investment opportunities and be wary of high-pressure sales tactics. For more information or to report a scam, visit BBB.org or use the BBB Scam Tracker.
