The Federal Bureau of Investigation in Denver has released a statement alerting the public to the growing prevalence of cryptocurrency scams in the area. It is feared that many people are being defrauded of large sums of money.
Investigators have noticed an increasing trend of investment frauds which involve cryptocurrencies such as US Tether and USD Coin. Most of the victims were first contacted through social media, dating apps and online forums.
Fraudsters usually provide a link and a phone number for victims to open an investment account. However, the FBI is warning people that this is a scam and that the criminals are running a fake customer service website in order to get money from them.
As reported by the Federal Trade Commission, losses from cryptocurrency scams have surged by $575million since 2021. The authorities are especially concerned with the ever-growing number of victims of these frauds.
The Federal Bureau of Investigation (FBI) has warned of an increase in cryptocurrency-related scams in Denver, with victims losing more than $1 billion in the past year alone.
The agency’s Special Agent in Command, Mark Michalek, commented: “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.”
According to the FBI, people aged 60 or older lost almost $25 million in investment scams in 2021, with more individuals being taken in by bogus investment opportunities than any other type of fraud. Data from the Internet Crime Complaint Center said that this demographic was more likely to suffer financial losses from these scams than any other age group.
