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AARP Warns of Cryptocurrency Investment Fraud Risks for Seniors

June 16, 2021 Blog

As Bitcoin and other cryptocurrencies continue to gain mainstream acceptance, more retail investors and investment advisors are putting their money into the digital currency market. Unfortunately, the rise in popularity of cryptocurrency investing has led to a rise in cryptocurrency-related fraud scams as well. As a result, the AARP has recently issued a cryptocurrency fraud alert for seniors. Here, Bitcoin lawyer Jake Zamansky discusses the AARP’s fraud alert and shares his own thoughts on what seniors (and all other cryptocurrency investors) need to know.

3 Common Cryptocurrency Investment Fraud Scams

The AARP’s fraud alert highlights three particular types of cryptocurrency investment fraud scams that present risks for unwary investors. These are:

1. Bogus Websites

Since Bitcoin and other cryptocurrencies are not traded on regulated exchanges, some fraud artists are setting up bogus websites touting investment advice or ways to invest in cryptocurrency. Once people “invest” their money, the fraud artists simply take the money and pocket it for their own financial gain.

2. “Celebrity” Endorsements

Celebrity endorsements, especially on social media, have become a popular way for companies to promote investment opportunities. However, fake “celebrity” endorsements have also become a popular way for fraud artists to pump up the price of cryptocurrency investments so that they can sell for a profit. These fake endorsements include the impersonation of well-known celebrities and investors as well as the creation of made-up personalities of successful Bitcoin investors.

3. Ponzi Schemes

“Some cryptocurrency crooks peddle nonexistent opportunities to invest in digital currencies and creating the illusion of big returns by paying off old investors with new investors’ money.” This is the classic Ponzi scheme model applied to the modern-day world of cryptocurrency. Investors who lose money in these schemes may be able to recover their losses, but to do so, they will need to engage a Bitcoin lawyer promptly.

The Risk of Unsuitable Investment Advice

In addition to these types of fraud scams (among others), individuals who invest in cryptocurrency through brokers and advisors must also be wary of the risk of receiving unsuitable investment advice. While Bitcoin and other cryptocurrencies are becoming more mainstream, they are still highly volatile (and thus high-risk) investments. Investing in cryptocurrency isn’t right for everyone, and it can be particularly dangerous for seniors who rely on their investments in retirement.

What to Do if You Lose Money Due to Cryptocurrency Investment Fraud

If you have received unsuitable investment advice, or if you have lost money in a cryptocurrency fraud scam, you should speak with a Bitcoin lawyer right away. Depending on exactly what happened, a lawyer may be able to recover your losses in court, or you may be able to pursue a claim in FINRA arbitration. In any case, acting quickly is extremely important; and, if you have any questions or concerns, we encourage you to contact us promptly for a free consultation.

Speak with a Bitcoin Lawyer at Zamansky LLC Today

Zamansky LLC is an investment fraud law firm that helps Bitcoin and other cryptocurrency investors recover their fraudulent losses. To speak with an experienced Bitcoin lawyer in confidence, call 212-742-1414 or tell us how to contact you online today.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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