Understanding the Rise of Investment and Cryptocurrency Scams
Investment and cryptocurrency scams have emerged as one of the most significant threats to consumers across North America, according to the Better Business Bureau’s 2024 Scam Tracker Risk Report. This report highlights that these types of scams are among the riskiest, with a median loss per person reaching approximately $5,000. The report also shows that out of the top 10 consumer scams identified, investment-related fraud ranks highly in terms of financial impact.
In Alaska, the BBB has recorded several instances of investment scams in 2024. According to Cameron Nakashima, a representative from the BBB, there were six reported cases involving Alaskan residents, resulting in losses exceeding $74,457. These figures underscore the growing concern around fraudulent investment opportunities, particularly those involving cryptocurrencies.
Nakashima explained that many of these scams originate through social media platforms. “A lot of times, this looks like somebody will either direct message you, you’ll see a post that’s gone viral, or maybe they’re even putting out ads,” he said. “You start up that conversation because they’re promising you something really flashy.” These tactics often lure individuals into making investments without fully understanding the risks involved.
The rise in investment scams coincides with an increasing number of Americans seeking financial advice. However, the BBB’s data suggests that many people are not turning to trusted sources for guidance, which can lead to significant financial losses. A 2025 study by Ramsey Solutions supports this notion, revealing that 44% of individuals who worked with financial advisors had $100,000 or more saved for retirement, compared to just 9% of those who managed their finances independently. Additionally, 68% of millionaires studied had worked with an advisor during their journey to building wealth.
Despite these findings, Nakashima emphasized that financial planning is not exclusive to high-net-worth individuals. “You don’t have to be a millionaire to start saving,” he said. “There are financial advisors that will meet you where you and your budget are, and there are a lot of different ways to compensate them.”
Financial advisors may charge fees based on a percentage of the investment, an annual fee, an hourly rate, or a combination of these models. “The point there is, you don’t have to pay them necessarily $10,000 upfront to manage your assets,” Nakashima added. “If you’re just investing $1,000 or $5,000 and you want somebody to help you manage that, they might just take a small percentage of what that is.”
Finding the right financial advisor is crucial, especially given the success stories of individuals who have built wealth with professional guidance. Nakashima noted that while some advisors specialize in cryptocurrency, the majority follow industry standards and focus on traditional investment avenues.
One key warning sign is when someone approaches you with an overly attractive opportunity. “A lot of legitimate financial advisors will wait for you to approach them and will play it safe when you do,” Nakashima said. He also cautioned against any promises of extremely high returns, such as 10 times the investment. “Legitimate financial advisors can’t make any guarantees because the markets are never guaranteed.”
While the BBB does not provide financial advice, it offers educational resources and tools to help consumers find qualified professionals. On BBB.org, users can search for advisors in their area, check accreditations, read reviews, and gather information before reaching out for a consultation.
By staying informed and being cautious, individuals can protect themselves from the growing threat of investment and cryptocurrency scams. Taking the time to research and choose the right financial advisor can make a significant difference in long-term financial stability.
