Ohio Department of Commerce Urges Caution When Investing in Cryptocurrency: Risks and Warnings to Consider

Headline: Ohio Department of Commerce Warns Against Cryptocurrency Investment Scams

In a recent press release from the Ohio Department of Commerce Division of Securities, Ohioans, especially the elderly, are being urged to exercise caution when considering investing in cryptocurrency. The department highlights the growing popularity of digital currencies and the risks associated with investing in them, particularly due to the prevalence of scams targeting unsuspecting investors.

According to a report from the Better Business Bureau Institute for Marketplace Trust, investment scams involving cryptocurrency have become the riskiest type of fraud in the United States. Fraudsters are increasingly using cryptocurrency to deceive victims and swindle them out of thousands of dollars, with a median loss of $3,800 per victim.

The FBI’s 2023 Internet Crime Report also reveals a significant rise in investment fraud related to cryptocurrency, with losses totaling $3.96 billion in 2023, up from $2.57 billion in 2022. In Ohio alone, 928 residents reported falling victim to cryptocurrency scams, resulting in an estimated total loss of $69.6 million.

Timothy Jones, Investigator Supervisor with the Ohio Division of Securities, emphasizes the speculative nature of cryptocurrency investments and the importance of not risking more money than one can afford to lose. He advises potential investors to thoroughly research both the cryptocurrency and the platform they plan to use, verify licensing, and be wary of high-pressure tactics used by scammers.

John Crist, a compliance attorney with the division, warns that cryptocurrency can be both a speculative investment and a tool for fraudsters due to its unregulated nature. He urges investors to be vigilant and skeptical of offers that seem too good to be true.

For more information on cryptocurrency investments and to verify the licensing of individuals or entities, Ohioans are encouraged to contact the Ohio Division of Securities at (614) 644-7381. The department also provides resources on its website for further guidance on safe investing practices.

As the popularity of cryptocurrency continues to rise, it is crucial for investors to be informed and cautious to avoid falling victim to scams. Stay informed, do your research, and protect your investments from potential fraud.