FBI says Americans over 60 lost more than $1.6 billion to crypto scams in 2023. Here’s how to protect your retirement savings now
In 2023, 16,806 Americans age 60 and older contacted the Internet Crime Complaint Center to report being victims of fraud, with total losses totaling a staggering $1,648,455,748.
Unfortunately, all these scams have one thing in common: cryptocurrency.
Cryptocurrency was supposed to be the trend of the future, but the Federal Bureau of Investigation reported that there were more than 69,000 total complaints about digital currency scams that caused a total loss of $5.6 billion to victims of all ages.
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Unfortunately, the complex nature of digital currencies and growing interest in new investment opportunities makes cryptocurrency scams easy to carry out. But seniors can’t afford to lose their money to criminals, as doing so could put their retirement savings at risk.
To help retirees protect their hard-earned cash, let’s take a look at some of the most common cryptocurrency scams and techniques seniors can try to avoid falling victim to them.
Common cryptocurrency scams
Cryptocurrency scams come in many forms, but an FBI report shows which types of scams caused the biggest losses. Some of the most common scams include:
Overall, victims lost more than $3.96 billion due to fraudulent investments.
An estimated $9.6 million in financial losses due to phishing and spoofing
It’s not surprising that fraudulent investments are a major cause of losses. More and more people want to diversify into cryptocurrencies, but they can easily get misled, especially older people who are unfamiliar with the term blockchain, which is driving the development of many digital currencies.
Fraudulent investments can take the form of fake Initial Coin Offerings (ICOs), where scam victims are lured into purchasing currency that ultimately has no value. Fake digital wallets are also a common problem, where scam victims mistakenly believe they are safely storing their digital currency, but in reality they are handing over their private keys to criminals who steal their coins.
Phishing and spoofing, on the other hand, are scams that trick people into sharing personal or financial information by making them believe they are dealing with a legitimate company, when in fact they are not.
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Unfortunately, seniors can fall victim to these common scams if they’re behind on their retirement savings and expect a popular new investment will allow them to easily catch up.
Read more: The cost of living in America remains out of control, no matter what the Federal Reserve says, start using these three “real assets” to protect your wealth today.
How to prevent seniors from becoming victims of fraud
Seniors in the United States, especially those on fixed incomes, can’t afford to lose billions of dollars to cryptocurrency scams. Luckily, there are techniques retirees can implement to prevent this from happening to them.
Here are some ways to avoid becoming a victim:
Do your own research before making any investments, and avoid relying on celebrity endorsements and hard sales tactics.
Beware of false promises: if it seems too good to be true, it probably is.
Don’t rush into buying cryptocurrency. FOMO (fear of missing out) certainly exists, but there is no legitimate investment that should pressure you to buy right away.
Work with a reputable company. If you want to invest in cryptocurrencies, work with a reputable company with a proven track record and consider buying well-known digital currencies such as Bitcoin rather than venturing into uncertain territory.
Don’t give out personal or financial information. Never provide personal information in response to emails or phone calls. Instead, if you receive a call from a company requesting your personal information, hang up, look up the company’s actual phone number online, and call back to verify that the initial contact was legitimate.
Of course, you can avoid crypto scams altogether by staying away from the cryptocurrency market. Most seniors should be cautious with their investments, as they have a short investment horizon. Investing money you may need soon in a volatile asset like cryptocurrency is only inviting trouble, even if the coin you purchased is legitimate.
Instead of taking on investment risks, stick to the proven approach of putting your money into the U.S. stock market and watching it grow slowly and steadily over time.
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This article is for informational purposes only, should not be construed as advice, and is provided without warranty of any kind.
