DENVER, Co. – The Denver Division of the Federal Bureau of Investigation (FBI) has warned about cryptocurrency investment scams affecting mature adults, including Tether (USDT) and USD Coin (USDC), among others.
In a common scenario, victims are approached with cryptocurrency investment opportunities on social media platforms, dating apps, or discussion forums. Victims are directed to a link or phone number to set up an investment account. This is a scam. Links or phone numbers are controlled by scammers who set up fictitious support sites. Once the victim transfers the funds, the scammer disappears with the money.
Nationwide, most of the reported cryptocurrency fraud losses that originated on social media are investment scams. Of all cryptocurrency fraud losses reported to the Federal Trade Commission (FTC) from 2021 onwards, $575 million will be for fake investment opportunities, far more than any other type of fraud. I’m here. type. Over 46,000 people have reported losing over $1 billion in cryptocurrency.
According to the FBI’s Internet Crime Complaint Center (IC3), in 2021 Coloradans reportedly lost about $25 million to investment fraud. Her 60+ in Coloradan has lost more money to fraud than any other age group.
“As more people use and invest in cryptocurrencies, we see more crypto fraud,” said Special Agent Mark Michalek. “The FBI investigates allegations of cryptocurrency fraud, but the best course of action is not to become a victim in the first place. I hope you will pay attention.”
Specifically, Tether (USDT) and USD Coin (USDC) are tied to the US dollar. These cryptocurrency investment pitches should raise additional red flags that are likely fraud.
The FBI Denver has identified two major shortcomings when it comes to cryptocurrency investment fraud.
- A so-called “investment manager” will contact you. They promise to make your money grow — but only if you buy cryptocurrency and transfer it to your online account. Fake and their promises are also fake. If you log in to your “investment account” you can either not withdraw money at all or only with a high fee.
- Online “love interest” wants you to send them money or cryptocurrency to help them invest. If someone you meet on a dating site or app asks for money or offers investment advice, know this right away: it’s a scammer. Any advice or offer to help you invest in cryptocurrencies is a scam Nothing but. Send them virtual currency or any money and it will go away and you usually won’t get it back.
Here are some tips to protect yourself from cryptocurrency investment scams (collected from FBI Denver, IC3, and FTC).
- Scammers promise you that you will make money or promise large payouts with guaranteed earnings.No one can make those guarantees. Very little in the short term. And there is nothing “low risk” about investing in cryptocurrencies. When a company or person promises to make a profit, it is fraud. If an investment opportunity seems too good to be true, it probably is. Be careful with get-rich-quick schemes.
- Scammers make exaggerated claims without details or explanations. As with any investment, find out how it works and ask questions about where the money is going. An honest investment manager or advisor would love to share that information and back it up with details.
- Before investing in cryptocurrencies, search online for company or person names, cryptocurrency names, and words like “reviews,” “scams,” and “complaints.”
- Go to any website individually instead of using the provided links or QR codes.
- If you’re asked to use a new app, download it from your regular app store and not from the link provided.
- If you are sending e-mail purporting to be an investment advisor, please ensure that the representative has a business e-mail account.
- Resist the pressure to act quickly. Legitimate advisors don’t push you to make hasty decisions.
If you believe you are a victim of a cryptocurrency investment scam:
- File a complaint with the FBI’s Internet Crime Complaint Center (www.ic3.gov).
- If you paid with cryptocurrency, report the fraud to the exchange company you used to send the money.
- Keep logs of all communications, including original documents, emails, faxes, and financial transaction information.
- Expect additional contact attempts. Scammers often share or sell victim database information.
For more information on this scam, please follow this link. You can also check the data from this link.