Protect Yourself from Crypto-Related Fraud and Investment Scams

January 23, 2025

Cryptocurrency is a growing trend, offering investment opportunities but also attracting fraudsters targeting unsuspecting individuals. At Heartland Bank, we want to help you avoid falling victim to fraud and scams. Here’s a look at the risks and how to protect yourself.

The growing risk of crypto fraud.

Crypto fraud usually begins with an enticing investment opportunity promising fast, guaranteed returns. Scammers often use popular cryptocurrencies like Bitcoin or Ethereum to gain your trust.

Here's an example:
You receive a message from someone claiming to be a crypto expert, offering to double your money with minor risk if you send payment in cryptocurrency. After sending the funds, you can no longer reach the person, and the investment vanishes. Sadly, you’ve been scammed.

This scenario is becoming all too common, with millions of dollars lost each year.

Crypto-related Fraud and Investment Scams

Common crypto scams.

Be aware of these common types of crypto scams:

  1. Investment Scams: Fraudsters promise high returns with minimal risk, often using a pyramid scheme to recruit others.
  2. Impersonation Scams: Scammers impersonate celebrities or crypto influencers, creating fake endorsements to promote fraudulent schemes.
  3. Romance Scams: A scammer builds trust online and then asks you to send crypto for an emergency or investment opportunity, disappearing afterward.
  4. Phishing Scams: These trick you into revealing sensitive information, such as wallet keys or passwords, which scammers use to access your crypto.
  5. Fake Wallets and Exchanges: Fraudsters create fake platforms that seem legitimate. Once you deposit funds, you can’t withdraw them.

How to protect yourself.

To avoid falling victim to scams, download this infographic with helpful advice and be sure to follow these safety tips:

  1. Do Your Research: Investigate any cryptocurrency project before investing. Verify the platform's legitimacy and look for reviews or warnings.
  2. Watch for Red Flags: Offers that sound “too good to be true”—such as quick, guaranteed returns—likely are. Don’t let scammers pressure you into quick decisions.
  3. Keep Private Information Safe: Never share wallet keys or passwords with anyone.
  4. Use Secure Websites: Ensure websites you visit are legitimate. Look for "https://" and check for security measures.
  5. Don’t Send Crypto to Strangers: Only send crypto to people you trust or through established platforms.
  6. Consult Experts: If unsure, speak with a financial advisor to make informed decisions.

What to do if you suspect crypto fraud.

If you believe you’ve been scammed, act quickly:

  1. Contact Your Bank: If you’ve been targeted, contact Heartland Bank immediately. We can help you review transactions and take steps to secure your accounts.
  2. Report the Scam: Report it to agencies like the Federal Trade Commission (FTC) or the Internet Crime Complaint Center (IC3), who can investigate and prevent further harm.
  3. Monitor Your Accounts: Keep an eye on your bank accounts, crypto wallets, and credit reports for unusual activity.