The FBI has warned cryptocurrency investors about a rise in scams, particularly targeting retirees and the elderly, who are deceived into giving more money before disappearing with the funds, according to FBI experts.
Recent FBI reports show an increased incidence of crypto scams, and the losses have risen into the billions of US dollars. According to a survey carried out in California in 2023, the state residents lost more than $1 billion to cryptocurrency scams, and the Bay Area residents lost more than $260 million.
These numbers attest to cybercriminals' increasing interest in digital assets, given that those markets are anonymous and difficult to track.
Special Agent Scott Hellman of the FBI’s cybercrime division explains the tactics of such fraudsters. They usually exploit people who are not well-informed about digital currencies—primarily elderly people—by promising them high yields on their investments.
The scammers usually persuade the victims to invest their retirement funds in high-risk cryptocurrency-related schemes.
The approach taken by scammers is both sophisticated and deeply manipulative. Initially, they gain the trust of their victims with promises of substantial profits and minimal risk. Once convinced of their targets to make an initial investment, they fabricate scenarios of even greater returns if additional funds are invested. Eventually, they vanish when they have extracted as much money as possible, leaving the investors with substantial financial losses.
Agent Hellman explains, "The scam then involves pressuring the victim to invest more under the pretense of even higher returns. Soon after, the operation disappears along with the money, leaving the victim financially devastated."
The FBI urges investors to exercise caution and avoid investing in hot investment opportunities or those with low risks and high returns. They advise due diligence and not to fall prey to con artists who aim to defraud them. The FBI's warning is based on observations and observations.
The FBI emphasizes the importance of understanding scams and investing in cryptocurrencies to prevent fraud. Familiarizing oneself with the basics, identifying pitfalls, and knowing how to respond to fraudsters can minimize the risk of falling victim.