CRYPTOSCAM AWARENESS
June 2025 | NAR Legal Affairs
RED FLAGS
Exercise caution if a client asks you to invest in cryptocurrency and watch for these red flags:
• The client rapidly develops a trusting relationship with you.
• The client makes an impression of wealth and investment knowledge, claiming to have made their money through cryptocurrency.
• The client promises fast and high returns on your crypto investment.
• The client creates urgency to make a quick decision to invest.
• The client communicates only by phone, text, or email and refuses in-person interactions.
RECOMMENDED PRACTICES
• Never respond to unsolicited texts, social media messages, or emails soliciting an investment.
• Be cautious when sharing personal information online, as scammers will exploit personal details to build trust.
• Recognize the red flags listed above.
• Thoroughly research any investment platform before making an investment.
o Search online corporate records.
o Check for registration with regulatory bodies such as the Securities and Exchange Commission.
• Immediately report suspected cryptocurrency fraud to ic3.gov, and local law enforcement.
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