The world of cryptocurrencies began in 2009 when the mysterious Satoshi Nakamoto unveiled Bitcoin to the public. Since then, there have been an unprecedented 20,000 or more cryptocurrencies in circulation; nevertheless, this increase has also coincided with an unprecedented rise in cryptocurrency scams. Crypto-investment fraud increased by more than 50% between 2022 and 2023, according to FBI statistics, from $2.57 billion to $3.96 billion. The FBI just released a PSA warning of a new fraud that preys on cryptocurrency scam victims.
Which scams should you be aware of
The FBI’s Internet Crime Complaint Center made the revelation on Monday, detailing how con artists posing as legal organizations are going after victims of cryptocurrency scams and promising to help them get their money back. The FBI claims that the con artists are using social media to reach out to victims while pretending to be attorneys for fictitious law firms. The con artists say they have ties with government organizations that have given them access to the victim’s information. Through phony websites, victims have in some cases even gotten in direct contact with the con artists.
The ultimate goal of the con artists has been to steal money and identities. Identity fraud is possible since they have asked the victims for personally identifying information. Or, in the event that they come for your money, the FBI claims they demand payment of a portion of their costs upfront, with the remaining amount due upon recovery, or they want payment of a fee to release cash that have already been recovered.
When it comes to recovery services, the FBI recommends being extremely cautious if you have fallen victim to a cryptocurrency fraud. Make sure you do your research and avoid companies with a tiny internet presence or that guarantee you will receive your money back. Don’t give out any personal or financial information to someone who cold calls you and promises you money. And keep in mind that there is never a fee for you to report a crime to police authorities.
If you have fallen victim to a scam, don’t be hard on yourself; approximately 15% of Americans experience scams annually. In case you are among the fortunate 50 million Americans this year, make sure you collect all the necessary details (such as the method of communication, names utilized, and the exact date of the incident) and submit a report to the Internet Crime Complaint Center. Be cautious when using the internet as it might be hazardous.
