The Federal Bureau of Investigation (FBI) Denver Division has warned that cryptocurrency scams involving Tether (USDT) and USD Coin (USDC) are rising. The agency, via a press release, states innocent people are “falling victim to crypto scams,” leading to financial losses.
The FBI Denver investigators are reportedly witnessing a rising trend in cryptocurrency investment scams. In a general cryptocurrency scam,
The FBI says investors get approached on a social media platform, dating app, or discussion forum with a cryptocurrency investment opportunity.
The FBI further notes, innocent investors are then guided to entertain a link or a phone number to register an investment account. This is a common modus operandi of a cryptocurrency scam.
In fact, such a scammy link or phone number is indirectly controlled (behind the curtain) by the scammers. To do so, the scammers set up a fictitious support site; upon transferring the funds, the fraudsters run away with the investors’ money, the FBI states.
Nationwide, the FBI says, the number of crypto fraud losses that are reported on social media tend to be investment scams.
Such has been the scenario since 2021, wherein, $575 million of all crypto fraud losses reported to the Federal Trade Commission (FTC) were about bogus investment opportunities.
Over 46,000 people have taken to reporting cryptocurrency scams, totaling to over $1 billion in lost cryptocurrency funds. In 2021, the reported losses stood to be 60 times as compared to their magnitude in 2018, states the FBI’s Denver Division.
In 2021, the reported investment scams’ losses stood around $25 million for Coloradans, per the FBI’s Internet Crime Complaint Center (IC3). The federal agency also notes Coloradans 60 and above lost a higher amount of funds to scams compared to other age groups.
Per the FBI Denver Division, here are some examples of the cryptocurrency investment fraud victims in Colorado recently:
- A 52-year-old Aurora man lost approximately $600,000 in a Tether investment fraud scheme.
- A 61-year-old Denver woman female lost approximately $1.3 million in a Tether investment fraud scheme
- A 62-year-old Evergreen man lost approximately $350,000 in a Tether investment fraud scheme A couple from Parker in their late 40s lost approximately $1.2 million in a Tether investment fraud scheme
- A 53-year-old Timnath man lost approximately $600,000 in a USD Coin investment fraud scheme.
The FBI’s Special Agent in Charge Mark Michalek says, as more people use and invest in cryptocurrency, the more crypto scams we see.
The FBI will investigate allegations of crypto scams, but the best path is not to fall victim in the first place. FBI Denver wants people to be aware of the warning signs and be alert to the ways fraudsters try to reel them in.
The FBI Denver Division notes USDT and USDC are closely associated with the fiat currency, U.S. dollar. The agency cautions investors to avoid falling to the “so-called investment manager” and “love interest” frauds.
