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WelcomeWelcome LoginApril 26, 2024
The FBI’s 2023 Internet Crime Complaint Report revealed that investment scams claimed the most substantial losses out of all crimes tracked by the agency. In 2023, losses soared 38% to reach $4.57 billion, with crypto-related investment fraud accounting for almost 90% of that total.
Investment scams most often start on social media, online dating apps, or even via text message. Scammers use deepfake (realistic) images and information to establish contact, build what seems like a genuine relationship, then introduce a cryptocurrency investment opportunity. Victims may start by sending small amounts to a legitimate cryptocurrency exchange before taking on a larger “investment” with the scammer.
Why Cryptocurrency?
Unlike credit and debit cards backed by a financial institution, cryptocurrency does not come with legal protections, making it dispute fraudulent payments. After paying with crypto you can usually only get your money back if the person you paid sends it back. Once a victim realizes they have made a fraudulent investment, there isn’t much they can do to reverse it.
Tactic #1: Online Love Interest
Scammers use dating apps and sites to build what appear to be authentic relationships. After gaining trust, they weave cryptocurrency into conversations with the ruse of helping their victims invest.
Never mix online dating and investment advice. If you meet someone on a dating site or app, and they want to show you how to invest in crypto, or ask you to send them crypto, that’s a scam.
Tactic #2: Investment Opportunity
This scam starts with a text or direct message on social media from a person who claims they’ve made lots of money through investing in crypto. After showing interest, victims are directed to a fraudulent website to set up their own “investment account.”
Only scammers will guarantee profits or big returns. Don’t trust people who promise you can quickly and easily make money in the crypto markets.
Tactic #3: Crypto Job Recruitment
Scammers send unsolicited job offers to help recruit cryptocurrency investors, sell or mine crypto, or convert cash to crypto. These so-called “jobs” only start if you pay a fee in cryptocurrency and often encourage victims to invest in the fraudulent business themselves.
Only scammers demand payment in cryptocurrency. No legitimate business is going to demand you send cryptocurrency in exchange for employment – not to buy something, and not to protect your money. That’s always a scam.
STOP. GET SUSPICIOUS. BE FRAUD SMART.
Source: Federal Trade Commission