The Rise of Investment and Cryptocurrency Scams in North America
According to the Better Business Bureau’s 2024 Scam Tracker Risk Report, investment and cryptocurrency scams have emerged as the most significant threat to consumers across North America. This report highlights that these types of scams are among the top 10 riskiest for consumers, with a median loss of approximately $5,000 per person. The financial impact of these scams is particularly severe, as they often target individuals seeking ways to grow their wealth or manage their personal finances.
In Alaska, the BBB’s Cameron Nakashima reported receiving six investment scam reports in 2024, resulting in losses exceeding $74,457. He emphasized that many of these scams originate through social media, where scammers use viral posts, ads, or direct messages to lure victims into fraudulent schemes. These scams typically promise high returns on investments, which can be enticing for individuals looking to boost their savings or retirement funds.
The Role of Financial Advisors in Wealth Building
Despite the prevalence of scams, studies show that working with a financial advisor can significantly improve an individual’s financial outcomes. A 2025 study by Ramsey Solutions found that 44% of people who worked with financial advisors had $100,000 or more saved for retirement, compared to just 9% of those who managed their investments independently. Additionally, 68% of millionaires surveyed had worked with an advisor during their journey to build wealth.
Nakashima noted that it’s not necessary to have a large amount of money to start working with a financial advisor. Many professionals offer flexible payment structures, including percentage-based fees, annual charges, hourly rates, or a combination of these. This means that even individuals investing smaller amounts, such as $1,000 or $5,000, can receive guidance without paying exorbitant upfront fees.
Red Flags to Watch Out For
One of the key warning signs of a potential scam is when someone approaches you with an “opportunity” that seems too good to be true. Nakashima explained that legitimate financial advisors usually wait for clients to reach out and are cautious about making bold promises. While some firms may specialize in cryptocurrency, he advised caution when encountering offers that guarantee high returns, such as tenfold gains.
Instead, trustworthy advisors typically discuss modest, consistent returns over time. They avoid making unrealistic promises because the financial markets are inherently unpredictable. As Nakashima stated, “They’re going to say, ‘Hey, we may or may not get you a five, maybe 10% return if we’re lucky, over the course of a certain amount of time.’”
Finding Trusted Financial Advisors
Although the BBB does not provide financial advice, it offers valuable resources to help individuals find qualified financial advisors. On BBB.org, users can search for accredited professionals in their area, read reviews, and gather information before reaching out for a consultation. This process helps ensure that individuals connect with advisors who meet industry standards and have a proven track record of helping clients achieve their financial goals.
By staying informed and vigilant, consumers can protect themselves from investment scams while also taking advantage of the benefits that professional financial planning can offer. Whether starting with a small investment or building long-term wealth, the right advisor can make a significant difference in achieving financial stability.
