Attorney General Kwame Raoul on Wednesday encouraged Illinoisans to learn more before using or investing in cryptocurrency in order to avoid being defrauded by cryptocurrency scams.
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Cryptocurrency is a type of digital currency purchased using a computer or smart device. There are many different cryptocurrencies that can be purchased, sold and traded on cryptocurrency “exchanges;” used to buy goods and services; or held as investments. However, cryptocurrency can be risky because it can be lost or stolen, and prices are more unpredictable than traditional assets, Raoul says in a news release.
Unlike traditional money, assets or stocks, cryptocurrency and cryptocurrency exchanges are not meaningfully regulated by any government, centralized bank or organized exchange. Without significant oversight, it is easier for fraud to occur and more difficult to reverse fraudulent transactions. More importantly, there is no guarantee lost or stolen cryptocurrency will be returned.
“Recent high-profile scams involving cryptocurrencies highlight the need for consumers to be hyper-vigilant when dealing with anyone claiming to sell or provide information relating to the volatile world of cryptocurrencies,” Raoul said. “The unregulated cryptocurrency market has provided countless examples of massive investment gains and losses, fueling high-profile publicity and an associated increase in fraudsters looking to take advantage of consumers.”
The Attorney General’s office is aware of reports that people have been contacted by scammers who pose as cryptocurrency investors and promise significant investment returns or offer cryptocurrency investment advice. Those scammers either ask that money be sent to them directly or refer people to a website or app that looks authentic but that the scammer controls. Individuals may receive information indicating they have seen a return on their investment, but these statements and websites are usually fake,…
