HONOLULU (KHON2) — Fraud reports involving cryptocurrency scams have tripled over the last three years, and the Better Business Bureau says they are now the second-riskiest scam out there.

Experts warn confusion and a lack of government support leads fraudsters to love these so-called “coins.”

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“It’s also used by legitimate people as well, but it’s from that confusion,” said BBB Hawaii marketplace manager Rosann Freitas. “The fact that nobody regulates it, and no government backs it.”

One way these scams present themselves is someone reaches out with a great investment opportunity and claims they found a new cryptocurrency for a great buy-in price.

“That’s where people really want to jump in because they anticipate that that’s going to jump very high and they’re going to make that big return. They get people to buy in and then they actually never introduced that cryptocurrency.”

Roseann Freitas, BBB Hawaii marketplace manager

The BBB says the biggest thing to look out for is if the seller claims the investment is guaranteed with no risk.

“There’s no guarantee of any of it,” Freitas said. “So understanding that they cannot promise you a high return unless you have a high risk. So when they’re saying it’s guaranteed, that’s a real red flag that this is probably a scam.”

Other tips for staying ahead of cryptocurrency scams include knowing that these transactions can’t be reversed or disputed. The BBB says sending cryptocurrency is just like sending cash in the mail.

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Experts recommend to avoid relying on celebrity endorsements for a specific coin — look into it personally or speak to a financial advisor. A final rule of thumb for every investor is to never engage in financial transactions with an unknown business partner.