Investment and Cryptocurrency Scams Are the Riskiest in North America

Investment and cryptocurrency scams are wreaking havoc in North America, with recent reports revealing the staggering risks involved. The BBB’s findings urge consumers to tread carefully when investing their money.

Investment and crypto scams are on the rise

Investment and cryptocurrency scams are currently leading the pack in terms of risk for consumers in North America as identified by the Better Business Bureau (BBB). The BBB’s newly released 2024 Scam Tracker Risk Report reveals that this category ranks as the riskiest of all, with an alarming statistic highlighting a median dollar loss of about $5,000 per individual. In a year rife with scams, these figures suggest a significant threat to unwary investors who are simply looking to grow their funds.

Scams often start on social media

Cameron Nakashima, an official at the BBB, pointed out a worrying trend emerging from Alaska, where six investment scam reports have been logged in 2024. Victims have reported a staggering total loss of over $74,457, which underscores the seriousness of the issue. “Our records typically indicate that bigger losses are often tied to cryptocurrency schemes, frequently initiated through deceptive outreach on social media platforms,” he explained, adding that these scams usually flaunt enticing offers that draw people in, often using deceptive tactics to keep those conversations alive.

Seeking financial guidance is crucial

A recent Gallup poll suggests a growing hunger among Americans for guidance on personal finance, yet many still default to untrustworthy sources, exposing themselves to scams. In fact, a study from Ramsey Solutions in 2025 showed stark contrasts between those who seek professional help and those who attempt to navigate their financial journeys solo. Apparently, a whopping 44% of individuals who worked with advisors reported having $100,000 or more saved for retirement, significantly higher than the 9% of individual investors. These comparisons indicate that professional assistance can lead to better financial outcomes.

Understanding advisor compensation options

Nakashima also reassured that one doesn’t need to be wealthy to start saving or seeking financial advice. There are numerous financial advisors available who cater to different budgets and financial situations. “Investment compensation structures vary — some advisors charge a percentage of the initial investment, while others might apply an annual or hourly fee. Not every advisor requires a substantial upfront payment to manage your assets, and for smaller investments, there are strategies that won’t break the bank,” he elaborated. Understanding these financial models can help potential investors navigate their fiscal journeys more effectively.

Beware of potential fraud in finance

When engaging with financial advisors, Nakashima warned that it is critical to be aware of red flags signalling potential fraud. If someone comes to you with what seems like an irresistible opportunity, it’s wise to proceed with caution. Many reputable advisors will wait for clients to approach them rather than proactively reaching out. Investing in cryptocurrencies might be trendy, but if you’re on the lookout for a trustworthy advisor, sticking to traditional stock market strategies might be safer in the long run. These professionals usually promote modest returns rather than extravagant guarantees.

Resources for finding trusted financial advisors

Though the BBB does not provide financial advice, their role in educating the public about finding trustworthy advisors is imperative. Resources are available on the BBB’s official website, BBB.org, where individuals can explore different advisors in their locality, check for accreditations, and read customer reviews. This can ultimately help people make informed decisions about who to trust with their investments. Scams are an unfortunate reality in today’s market, but informed consumers are better equipped to guard themselves against them.

In summary, investment and cryptocurrency scams are emerging as the riskiest financial scams in North America, with significant losses reported. As the need for reliable financial advice rises, it remains crucial for consumers to approach potential advisors cautiously and to seek trustworthy guidance. Education and awareness are key to navigating this risky landscape successfully.