Michiganders Warned By Attorney General To Watch Out For Cryptocurrency Scams

As the popularity of cryptocurrencies such as Bitcoin & Dogecoin has skyrocketed, the Michigan Attorney General's office is warning people to be aware of scammers.

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Today the Michigan Attorney General Dana Nessel, Michigan Department of Licensing and Regulatory Affairs (LARA) Director Orlene Hawks, and Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox issued a consumer alert to help Michiganders protect themselves when using (or investing in) cryptocurrency. As the crypto market is currently worth over two trillion dollars, scams have become more common.

The state has laid out consumer guidelines for those interested in investing in the virtual currency:

Research before you invest. Search online using the company name as well as the cryptocurrency name; add "review", "scam", or "complaint" to your search.
Never wire or provide any credit card or bank account information until you check out the investment first.
Before using a digital payment app, such as Venmo, make sure you understand the terms and conditions of using and transferring different currencies through the app. Some may charge a fee when the user wants to transfer money to their bank.
Be careful when you see a celebrity endorsement. Scammers will use popular names and faces for curb appeal.

Michigan Attorney General Dana Nessel says that as the market grows, so does the possibility of bad actors trying to scam people:

As cryptocurrency popularity grows, so will the prevalence of scams. Bad actors running investment scams are always looking for new ways to target unsuspecting investors. It's so important to do your research before you invest in anything, including determining how and if you will have the option to transfer digital earnings to your bank. Otherwise, you may lose money instead of earning it.

If you or someone you know has been a victim of a scam, you are encouraged to contact the DIFS online here: Michigan DIFS