Great Lakes Wire

Attorney General Dana Nessel has re-issued her alert, Cryptocurrency! What is it? What are the Risks?, as part of Financial Literacy Month. Nessel emphasizes the importance of understanding the risks associated with cryptocurrency investments, highlighting the lack of regulatory protections and the susceptibility to scams.

Nessel warns potential investors about the dangers of cryptocurrency investments, stating, “While it is often portrayed as a lucrative investment, the reality is far from glamorous. Cryptocurrencies are volatile, susceptible to scams, and lack the regulatory protections of traditional investments.” She urges caution and thorough research before investing in cryptocurrencies.

The Federal Trade Commission (FTC) has reported a significant increase in cryptocurrency scams, with more than 46,000 people losing over $1 billion in total. These scams often exploit the anonymity of cryptocurrency transactions to defraud investors, with fraudulent investment proposals being a common tactic.

Nessel’s cryptocurrency alert provides valuable advice for potential investors, including doing thorough research, avoiding high-pressure sales tactics, and never investing more than one can afford to lose. The FTC also recommends steering clear of individuals who demand payment in cryptocurrency, guarantee profits, or mix online dating with investment advice, as these are often red flags for scams.

Financial Literacy Month serves as a reminder of the critical role personal finance plays in providing financial freedom and navigating the ever-evolving financial landscape. Nessel encourages individuals to stay informed and vigilant in their investment decisions, emphasizing the importance of lifelong pursuit of financial literacy.

To report cryptocurrency fraud, individuals can visit the FTC’s website. For those seeking to file a complaint with the Attorney General or obtain further information, they can contact the Consumer Protection Team in Lansing, MI.