The Springfield Police Department recently put out a warning to residents about cryptocurrency payments. They are telling residents that if they receive a phone call from someone demanding a payment in either cryptocurrency or bitcoin, to hang up as it is likely a scam.
What is cryptocurrency?
Cryptocurrency is a type of digital currency that generally exists only electronically. You usually use your phone, computer, or a cryptocurrency ATM to buy cryptocurrency. Bitcoin and Ether are well-known cryptocurrencies, but there are many different cryptocurrencies, and new ones are being created all the time.
How are people using cryptocurrency?
People use cryptocurrency for many reasons — for quick payments, to avoid transaction fees that traditional banks charge, or because it offers some anonymity. Others hold cryptocurrency as an investment, hoping the value goes up.
Here are some tips from the Federal Trade regarding cryptocurrency scams:
1. No legitimate business is going to demand cryptocurrency in advance – not to buy something and not to protect your money. This is always a scam.
2. Don’t trust people who promise you can quickly and easily make money in the crypto market. Only scammers guarantee profits or big returns.
3. Never mix online dating and investment advice. If you meet someone on a dating site or app and they want to show you how to invest in crypto or asks you to send them crypto, keep your distance. It’s likely a scam.
For more tips and information, visit the FTC’s website:
https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams