What is cryptocurrency?
Cryptocurrency is a digital currency created to avoid banking transaction fees. Existing only online, it can be easily hacked and lost forever. The most well-known of its kind is Bitcoin.
Cryptocurrency is often seen as a risky investment because it’s not backed by the government and its value changes frequently. Despite legitimate uses, it has also attracted scammers who use pressure tactics to get payments. One major issue is that cryptocurrency transactions don’t have the same protections as credit or debit card transactions and instead are irreversible and public.
Wherever there is money, there are scams
In this way, cryptocurrency is no different than cash in its propensity to attract scammers. To avoid getting duped by a crypto con, remember that:
- Honest businesses don’t ask for payment in cryptocurrency
- If you get a “fraud alert” asking you to send cryptocurrency, it’s a scam
- Celebrities don’t contact potential investors via social media or ask for cryptocurrency through QR codes
- Don’t trust anyone from dating sites or social media who asks for money or investments in cryptocurrency
- Real government agencies or utility companies won’t ask you to send cryptocurrency to fix account issues or legal problems
…If they do, it’s a scam. If in doubt, make contact through a trusted channel to verify the request.
Staying safe with the Homefield Advantage
Be assured that Homefield Credit Union does not conduct transactions using cryptocurrency. We urge you to contact a member services representative if you receive something suspicious regarding your accounts.