"Cash, check, or charge?"

Back in the day, cashiers often asked customers which payment method they'd be using. Not to be outdone, scammers also accepted cash, physical checks, or credit cards.

Combine the rise in popularity of bitcoin and celebrity endorsements, and you have the makings of one of the most profitable scams of the past six months.

Fast forward to the 21st century. Retailers have upped their game to accept contactless payments, and scammers pressure victims to send them gift cards, wire transfers, or — wait for it — cryptocurrencies.

Combine the rise in popularity of bitcoin and celebrity endorsements, and you have the makings of one of the most profitable scams of the past six months.

(Two friends waiting for the metro)

Sally: Whatcha' working on there?

Dan: (browsing online) My summer vacation plans.

Sally: Sounds like fun! Wait, I thought you were having trouble paying rent. By the way, you still owe me for ...

Dan: Calm down. I'll have the money to pay you and my landlord soon. I just invested in a guaranteed winner.

Sally: Really? You know nothing is guaranteed when it comes to investing.

Dan: Can you keep a secret?

Dan shows Sally an article on his tablet. It claims that a well-known business plans to give away half of its stake in bitcoin. Investors only need to send their cryptocurrency to a designated digital wallet, and they'll get double back.

Dan: My parents lent me $10,000 and I converted it to bitcoin. I transferred it yesterday. Oh man, I'm so excited!

Sally told Dan that he'd likely transferred his crypto directly into a scammer's wallet — not to the well-known company. She'd read about the scam the previous week. Cryptocurrency offers no legal protections and payments can't be reversed, so there was virtually no way Dan could get his money back.

Cryptocurrency Scams Have Increased

According to the Federal Trade Commission, cryptocurrency scams have increased more than ten-fold year-over-year with consumers losing more than $80 million since October 2020.

Protect yourself from cryptocurrency scams by avoiding companies and individuals that:

• Use celebrity endorsements. Scammers advertised fake testimonials and images of one celebrity to convince victims to hand over more than $2 million since October 2020.

• Claim you'll receive a sizable amount of free money in cash or cryptocurrency if you act quickly. Almost every scam comes with an urgent deadline.

• Offer little to no information about how cryptocurrency investment works.

Do your homework before investing in cryptocurrency. Research companies online, and check for complaints filed with the Better Business Bureau. To protect your financial future, approach all investment opportunities with healthy skepticism — and report scam attempts (or suspected scam attempts) to the Federal Trade Commission.