As technology evolves, so do the tactics used by scammers—and today, cryptocurrency scams are one of the fastest-growing threats, affecting people of all ages but especially targeting seniors.
In 2023 alone, seniors lost more than $1.9 billion to fraud, according to the Federal Trade Commission (FTC). The FBI’s first-ever Cryptocurrency Fraud Report, released in September 2024, revealed that individuals aged 60 and older filed over 16,000 complaints related to cryptocurrency scams, reporting losses of more than $1.6 billion—the highest total for any age group.
But it’s not just seniors who need to be vigilant. Younger adults eager to invest—and sometimes driven by “fear of missing out” (FOMO)—are falling for these scams, too. No matter your age, staying informed is the first line of defense against modern fraud.
Cryptocurrency: A New Frontier for Scammers
Cryptocurrency like Bitcoin or Ethereum is legitimate digital money—but it’s also become a favorite tool for scammers. Criminals know many people don’t fully understand how crypto works, and they exploit that gap.
How the scams happen:
- Fake Investment Opportunities
Scammers promise high returns on crypto investments or invite victims to participate in initial coin offerings (ICOs) that don’t exist. - Imposter Financial Advisors
Fraudsters pose as financial professionals, using flashy websites and technical jargon to appear legitimate. Once they gain trust, they persuade victims to transfer funds into unregulated wallets or exchanges, making the money nearly impossible to recover. - Pig Butchering Scams
One of the fastest-growing scams, “pig butchering” involves criminals building an emotional relationship with the victim—sometimes over weeks or months—before persuading them to invest significant sums into fake crypto platforms. Losses from pig butchering scams skyrocketed 53% in one year, jumping from $2.57 billion in 2022 to $4 billion in 2023.
“These schemes offer individuals large returns with the promise of minimal risk,” the FBI warns. “Criminals target consumers and retail investors—particularly those unfamiliar with the technology and the attendant risks.”
Warning Signs Everyone Should Know
Whether you’re 25 or 75, here are red flags that a crypto scam may be lurking:
🚫 Urgent payment requests. Legitimate businesses rarely demand immediate payment via apps or cryptocurrency.
🚫 Unsolicited offers. Be cautious of out-of-the-blue investment opportunities, social media messages, or emails claiming there’s a problem with your account.
🚫 Pressure to keep it secret. Scammers often instruct victims not to discuss the investment with friends or family.
🚫 Requests for cryptocurrency payments. Very few reputable businesses require payment in cryptocurrency for goods or services.
How to Stay Safe
- Enable security features. Turn on two-factor authentication for all financial apps and accounts.
- Never share sensitive info. Keep login credentials and personal information private, even if someone seems trustworthy.
- Talk it over. Family members can help by discussing these scams, verifying suspicious messages, and reviewing accounts regularly.
- Research before investing. Look up companies on trusted websites like the Better Business Bureau, read reviews, and confirm contact details independently.
Protect Yourself—and Your Loved Ones
At Mercer Savings Bank, we’re committed to helping you stay informed and secure. Visit our Fraud Resources section to learn more about how to recognize scams and protect your financial well-being.
Remember: If something seems too good to be true, it probably is.
Stay safe, stay aware—and know we’re always here to help.
