How to avoid cryptocurrency investment scams —

How to avoid cryptocurrency investment scams —

Are you a professional financial advisor? Register for Globe Advisor and then sign up for the weekly newsletter on our newsletter sign-up page. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know. With cryptocurrency prices at a low ebb, investors might be tempted to put some money into these speculative assets. What should advisors tell them about the risks? When clients want to test the water, one of the first things advisors should do is help them avoid becoming shark bait. Scammers can smell fresh chum from miles away. The U.S. Federal Trade Commission’s Consumer Protection Data Spotlight report published in June found more than 46,000 people in the U.S. alone had suffered from cryptocurrency scams since 2021, with losses totalling more than US$1-billion. That’s up from US$130-million in 2020. The market’s wild growth lured many naive investors afraid of missing out, says Greg Taylor, chief investment officer at Purpose Investments Inc. in Toronto, which offers cryptocurrency exchange-traded funds (ETFs). “There was a greed factor that got in,” he says. The hype blurred the line between investment and gambling and attracted some unsavoury characters. “When you get speculative excess, you must be wary of fraud. It happens in every bull market.” Those frauds are many and varied. In some cases,… Read more…

Read More…

Leave a Reply

Your email address will not be published.

five × 2 =