TDCI Shares Tips on Investing in Cryptocurrency Ahead of World Elder Abuse Awareness Day (June 15, 2024)

NASHVILLE – Ahead of World Elder Abuse Awareness Day (Saturday, June 15, 2024) the Tennessee Department of Commerce & Insurance (“TDCI”) Division of Securities is highlighting the importance of learning the red flags that might indicate elder financial abuse or fraud when it comes to investing unregulated products such as cryptocurrency and any “virtual” investments.

“Our Department is committed to helping protect the dignity and financial independence of Tennessee’s elder population,” said TDCI Commissioner Carter Lawrence. “Any Tennessee senior, loved one, or caregiver who has questions when it comes to their investments or insurance policies should contact our team so that we may provide assistance.”

To assist senior investors and their loved ones, TDCI reminds seniors and their caregivers to always be cautious when it comes to investing in unregulated products such as cryptocurrency and any “virtual” investments.

Cryptocurrency is an unregulated, digital-only currency that is not backed by a bank or a government. While cryptocurrency has grown in popularity among investors of all ages in recent years, several cryptocurrency exchanges have filed bankruptcy in recent weeks.

"Nothing about cryptocurrencies makes them fool-proof investments,” said TDCI Assistant Commissioner for Securities Elizabeth Bowling. “Just like with any investment opportunity, there are no guarantees. Considering the volatile nature of cryptocurrency, the risk is even higher that you might lose your entire investment.”

To help senior investors, TDCI is sharing these tips:

• Understand the risks and make sure you are comfortable with them, including the possibility that you might lose your entire investment.
• Verify that the person or entity offering the investment is registered with one or more securities regulators. Visit TDCI’s Securities division online here.
• Avoid discussing investments or sharing personal or account information with avatars, or digital representations of users that can take on any appearance or personal attribute. Fraudsters may try to leverage shared interests, ideas, and goals to build trust and convince investors to invest in phony investment schemes.
• Steer clear of unsolicited online investment advice.
• Be wary of misinformation including fake news and online celebrity gossip as scammers write fake online articles and social media posts that create buzz by falsely stating a celebrity or public figure is involved in technology investment.

Questions about an investment? Contact the Securities Division at tn.gov/securities or 800-863-9117 for more information or if you suspect a securities fraud has occurred.

Other types of elder abuse involving abuse, neglect, or exploitation should be reported to the Tennessee Department of Human Services, Adult Protective Services Unit by phone at (888) 277-8366 or online, or, if there is immediate danger, to local law enforcement.

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