A New Crypto Scam: Waiting for Elon Musk

 

There’s a new scam in town, and they’re waiting for Elon Musk

Scammers are now preying on those who have been investing in the Cryptocurrency market. Crypto’s been a wild ride, with a huge surge in prices, then a plunge. The most important feature of Cryptocurrency is that it is not controlled by any central authority. The decentralized nature of the blockchain, the digital ledger of transactions that is duplicated and distributed across the entire network of computer systems, makes Cryptocurrencies immune to traditional banking procedures as we know them—including regulation by the FTC. Crypto is all internet-based.

Anyone who’s investing in the stock market should be prepared for both profits and losses. What’s disturbing is that some Cryptocurrency investments are complete scams.

Losses grew more than tenfold

According to the Federal Trade Commission (FTC) 6,800 consumers reported more than $80 million in Cryptocurrency-investment scam losses during the six months ending March 31. The median loss was $1,900.

If you’re going to play in the Crypto market, here are some guidelines from the consumer protection agency that will help you avoid scams.

1. Beware scammers impersonating Elon Musk. Sadly, Elon Musk will not be calling you. Some investors actually believe that one of the world’s richest men, a billionaire entrepreneur and Crypto investor’s tweets can stir the Crypto market. The FTC received reports of more than $2 million in losses due to Musk impersonators. The scam “involves a promise that a celebrity associated with Cryptocurrency will multiply any Cryptocurrency you send to their wallet and send it back,” the FTC cautions. It’s important to understand that no celebrity will multiply your investment. Not Elon Musk or any other well-known person.
2. Beware bogus websites. Be on the alert for phony websites that deploy deceptive testimonials and Cryptocurrency jargon that appear credible, “but the promises of enormous, guaranteed returns are lies,” the FTC states. Even more heinous, these sites may make it appear that your investment is growing. Consumers who have been ripped off have complained that when they tried to withdraw the purported profits, “they are told to send more Crypto — and end up getting nothing back.”

Seniors are an easy target for Crypto scammers and other crooks

Seniors are a vulnerable market. The alarming tone of my social security scam robocalls is a good example. For an elderly person, this call could be alarming and have unfortunate endings.

Creating a Living Trust is an important part of financial planning

A Living Trust is an important part of financial planning that isn’t affected by the ups and downs of the stock market and the uncertainties of Cryptocurrency. Our Living Trust package includes a Power of Attorney and Advance Healthcare Directive. Having these legal documents in place now can help avoid confusion later on. We learned an important lesson from Covid: Once patients were infected with the virus, they were in no condition to be signing legal documents. We guide you through the process, and we prepare the legal documents. Schedule an appointment with Guideway today.

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