Protecting Your Finances: Navigating Crypto Scams

All too often the bank is witness to money scams placed on innocent people. In fact, last year alone, the banking industry experienced an increase in fraud, with 60% of respondents reporting a rise in fraud events across both consumer and business accounts, according to Alloy's 2024 State of Fraud Benchmark Report. The Bank of New Glarus works diligently to protect our customers from these crimes. One of the best ways to protect yourself and your money is to arm yourself with information.

Of late, cryptocurrency scams are on the rise. Cryptocurrency, a form of money that uses cryptography to secure transactions and control the creation of new units, is an innovative concept, whose development has also welcomed a surge in scams. Understanding these scams and the importance of trusting your financial institution can help you stay safe. A few of the most common Crypto scams include:

  1. Ponzi Schemes: Promise high returns with little risk, paying early investors with new investors' money.
  2. Phishing Attacks: Fake websites or emails trick you into revealing your private keys.
  3. Pump and Dump: Inflating a cryptocurrency's price through false statements, then selling off at the peak.
  4. Fake ICOs: Collecting funds for fake projects and disappearing.

Red Flags

  • Unrealistic Promises: Guaranteed high returns with no risk.
  • Pressure Tactics: Rushing you into decisions.
  • Lack of Transparency: Hard-to-verify information.
  • Unsolicited Offers: Unknown sources promoting investments.

Trusting Your Financial Institution

  1. Regulation and Security: Financial institutions are regulated and secure.
  2. Customer Support: Banks offer support to resolve issues.
  3. Insurance: Bank deposits are insured, unlike cryptocurrencies.
  4. Established Trust: Financial institutions have long-standing reputations.

Conclusion

Cryptocurrencies offer opportunities but come with risks. Stay informed and vigilant to protect yourself from scams. Trusting your financial institution provides regulation, security, and support for your financial future.