In recent years, cryptocurrency has captured the attention of investors worldwide, promising a new frontier for diversification and financial growth. However, this surge in popularity has not gone unnoticed by financial scammers.
Criminals are increasingly targeting unsuspecting individuals through various schemes, including bitcoin ATM (BTM) scams. Understanding these threats and learning how to protect your investments is crucial, especially as you consider diversifying your retirement savings with digital assets.
Crypto is a growth industry (and so is crypto fraud)
Cryptocurrency’s meteoric rise has created fertile ground for fraudsters.
According to a recent report by the Federal Trade Commission (FTC), bitcoin ATM scams have seen a tenfold increase from 2020 to 2023. In just the first half of 2024, Americans lost a staggering $65 million to these frauds. Older adults are particularly vulnerable; those aged 60 and over lost $46 million or 70% of the total.
Don’t make the mistake of thinking that you’re under age 60 and too smart to fall for a trick. Scammers employ a wide variety of quite devious tactics to commit their crimes. They often impersonate government and business entities or pose as tech support representatives. Nearly half of the reported cases began with a phone call, but some victims were also tricked by fake security warnings from online ads, pop-ups, and fraudulent emails.
Bitcoin ATMs are a preferred method for scammers to collect their proceeds from their victims. Here’s why (via FTC):
Crypto payments do not come with legal protections, like credit and debit cards, ACH payments or even paper checks all do. You can’t dispute a crypto purchase.
Crypto payments are generally not reversible. Once you send a crypto payment, it’s too late for second thoughts. You can’t get your money back unless the person you paid returns it to you.
Some information about your transactions will be public. Transactions are not anonymous. Cryptocurrency transactions are recorded on the blockchain (public ledger of transactions). Depending on the blockchain, the information added to the blockchain can include details like the transaction amount, as well as the sender’s and recipient’s wallet addresses. It’s sometimes possible to use transaction and wallet information to identify the people involved in a specific transaction. Scammers use a crypto “mixer” or “tumbler” to disguise the ultimate recipient of stolen money – but the victim’s details remain public.
Many scammers direct their targets to specific crypto ATMs. That’s why, when you do see a bitcoin ATM in the wild, you’ll often see a warning like this one:
Bitcoin ATM warning sign in Edmonton, Alberta, Canada via Reddit
This is just one of the many types of crypto scams – learn more about cryptocurrency security here.
BitIRA: A safer way to diversify with cryptocurrency
Given the growing threat of crypto scams, it’s essential to choose a secure and reliable platform for your digital investment needs. BitIRA stands out as a beacon of trust and security in the cryptocurrency landscape, offering a robust solution designed to safeguard your assets.
Advanced security measures
At BitIRA, we are committed to providing the most secure digital IRA solution possible. To achieve this, we have partnered with Fireblocks, a leading expert in digital asset storage and security. Our platform employs Multi-Party Computation (MPC) technology, which ensures that no transaction can be approved without your personal authorization and authorization from our trusted security partners.
MPC eliminates any single point of compromise by requiring multiple parties to approve every attempt to access your assets. This multi-layered approach significantly enhances the security of your digital investments. Additionally, we offer end-to-end insurance coverage to protect your assets whether they are in storage or in transit.
For more detailed information on our security features, please visit BitIRA’s Security Page.
The importance of smart diversification
The increasing scrutiny of cryptocurrencies highlights the importance of making informed and secure investment decisions. Diversifying your retirement savings with cryptocurrencies can provide significant growth opportunities, but it’s essential to do so safely to avoid falling victim to scams.
Why diversify with cryptocurrency?
BitIRA offers several advantages for retirement savings, including:
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- Potential for high returns: Cryptocurrencies have shown incredible growth potential, making them an attractive option for long-term investment.
- Hedge against inflation: Digital assets can serve as a hedge against inflation and economic instability, preserving your purchasing power.
- Diversification: Adding cryptocurrencies to your retirement savings can reduce overall risk by diversifying across different asset classes.
- Tax-free trading: Owning cryptocurrencies in a digital IRA eliminates the burdensome record-keeping and reporting requirements on every single transaction required by the IRS.
As the popularity of cryptocurrency continues to rise, so does the risk of falling victim to scams. However, by choosing a secure and reliable platform like BitIRA, you can confidently diversify your retirement savings with digital assets. Our partnership with Fireblocks and the use of MPC technology ensure that your investments are protected from potential threats.
Don’t wait until it’s too late. Secure your financial future by diversifying with cryptocurrencies through BitIRA today. You can get started right now, or give us a call at (800) 299-1567 and we’ll walk you through the process, step by step.
