Minnesota issues warning about cryptocurrency fraud

On Behalf of | Jun 1, 2018 | Consumer Fraud

Fraud and other dishonest business practices are certainly nothing new, and the practices seem to adapt to every era in human history. Fortunately, the detection methods that law enforcement agencies use to ferret out fraud also adapt with the times.

The Minnesota Commerce Department often issues advisories to investors and others in the state against new developments in fraudulent practices. Many people who feel they are less computer-literate than others require extra protections, as citizens who spend less time on the internet can still be susceptible to scams and identity theft on it.

For cutting-edge investors, the internet offers several possible routes to a quick fortune. Cryptocurrencies, virtual units made valuable by their unique data patterns, can be attractive to investors of a few dollars at a time to million-dollar venture capitalists.

The market is volatile enough as it is without fraudulent offerings of digital currency, but illegal deals with cryptocurrencies have become common enough that the Minnesota Commerce Department is partnering with other agencies to crack down on them. Common scams involve invitations to take part in fictional offers, as well as incorrect prices on snap purchases.

“Cryptocurrency is the new frontier for investment fraud,” said the commissioner of the Minnesota Commerce Department. “Investors should approach these offerings with extreme caution.”

Although it is difficult to get money back after a fraud or illegal investment, it may be possible with the right efforts. Victims of financial fraud have the right to reclaim illegal losses through a suit in civil court. A lawyer can help prepare a case and identify the probable defendants.

Source: Across Minnesota Patch, “Minnesota Begins International Cryptocurrency Crackdown,” William Bornhoft, May 23, 2018

FindLaw Network