Although the first cryptocurrency launched in 2009, participation and speculation accelerated rapidly over the last two years with terms like NFT and dogecoin entering the daily lexicon. However, interest often outpaces understanding in the cryptocurrency discussion, and people who are just getting involved need to be aware of the security risks. Although most credit unions may not yet be involved in the cryptocurrency sphere, education is essential to avoid dangerous crypto scams.
Designed to unlock new forms of financial operation, cryptocurrency has the potential to ease and expedite payments. Transactions move at the speed of blockchain, typically requiring minutes, unlike the next-business-day timeframes for the automated clearing house network. In addition, payments made via cryptocurrency do not require a credit union or bank account. And, unlike credit and debit card transactions that can be disputed, cryptocurrency transactions are irreversible.
Just as cryptocurrency offers new opportunities for consumers, it opens doors for bad actors. With no credit unions or banks involved, there is no authority to flag suspicious activity. With no ability to dispute transactions, a victim can’t recover his cryptocurrency once it is lost to a scammer.
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