The Federal Bureau of Investigation (FBI) has issued a warning to cryptocurrency investors, highlighting a surge in scams, particularly targeting retirees and the elderly. FBI experts explain how scammers trick victims into fake crypto investments and scare them into handing over more funds before vanishing with the money.
FBI Warns of Growing Cryptocurrency Scams Amid Massive Losses
The Federal Bureau of Investigation (FBI) has alerted cryptocurrency investors about a surge in scams, with digital assets becoming a prime target for cybercriminals. A recent report revealed that California lost over $1 billion in cryptocurrency thefts in 2023, with more than $260 million taken from investors in the Bay Area.
Related: FBI Seeks Victims of Crypto Fraud in Market Manipulation Case
FBI Special Agent Scott Hellman, who focuses on cyber crimes, explained the tactics used by scammers. Speaking from the perspective of a scammer, he detailed: “I’m typically gonna target the retired or elderly because I know they’re gonna have retirement money, and I’m gonna trick them into re-investing their retirement funds into a cryptocurrency investment opportunity.” Hellman continued to describe how criminals manipulate victims:
Then, at some point, I’ll scare them into giving me even more money, and then the whole scam disappears, and the money disappears, and I’ve made off with a bunch of cryptocurrency.
The FBI emphasized that investment fraud is currently the leading cause of financial losses in the cryptocurrency space. With crypto being difficult to trace and offering no insurance protections, it has become a highly attractive area for scammers.
The agency urged caution, advising people to be skeptical of unsolicited investment offers, especially those that seem too good to be true. Investors should carefully vet any crypto-related opportunities to avoid falling victim to these sophisticated schemes.
Source: Bitcoin
