TULSA, OK. โ The holidays can come with the pressure to give fancy gifts or appear like a big spender.
The FBI warns that cryptocurrency thieves are eager to attack your wallet. Scammers love cryptocurrencies because it is difficult for victims to recover stolen funds.
Most people have heard of cryptocurrencies, but not many know how they work or that they are not backed by banks or federal deposit insurance.
"I mean all the bad guys want crypto because it's untraceable, they love it," cybersecurity expert Bill Sieglein.
It is also unregulated and transfers are instant. Those qualities make the transactions easier for law enforcement to evade, according to FBI Special Agent Keith Custer.
โOnce the transaction is complete, it is irreversible and it is much more difficult for us to help a victim recover funds,โ Custer said.
It has also caused an explosion in cryptocurrency crime. The Federal Trade Commission says that in 2018, victims of cryptocurrency crimes lost a total of $12 million. In the first quarter of 2022 alone, reported losses reached $329 million.
Cryptocurrency schemes take many forms, such as when someone posing as your utility company threatens to shut off your electricity or water unless you immediately pay a supposedly overdue bill with cryptocurrency.
It happened to Natasha Clendenin-Bey. The fake utility worker called claiming that she would shut off the power at her business if she did not pay immediately at the nearest Coin-me kiosk.
She said that as she walked to the machine that used cryptocurrency to pay bills, he told her, "He's still on the phone all this time, and I'm standing in front of the machine...he says no, we've started something new and I'm doing Bitcoin, you can pay, and since I'm distraught, I'm trying to get back to the store before my appointment arrives, I'm like whatever."
He ended up losing $1,000 by following instructions to pay a bill he never owed.
โThere are cryptocurrency ATMs and all the criminals know where they are and are very happy to give you instructions on how to go there and get the cryptocurrency for them,โ Seiglein said.
Cyber โโcriminals also use another popular scam. Sherrett Jacobs didn't owe money, she wanted to earn something. When someone claiming to be in a crypto investment company contacted her on Instagram, she thought she sounded good. โThey started investing on my behalf and I could see on my dashboard the money was literally going up in increments. She never went under; it only went up over the course of three days.โ
She claims that her investment of $300 suddenly turned into $9,000. โI was told that she had to pay a one-time fee of $1,500 to be able to withdraw this money.โ
She sent the money via Bitcoin.
โI got an email from their โcustomer service,โ it said, โin order for the withdrawal to be processed, I had to pay the IRS a fee of $2,500.โ
Jacobs went to his brother, who is a cryptocurrency investor. He confirmed that during those three days his investment would have decreased, not increased, and that this company was not who he claimed to be.
To protect yourself and your real wallet, the Federal Trade Commission offers these tips for spotting crypto-related schemes:
- scammers often pose as companies, government agencies, or online dating love interests.
- they promise big returns, with "zero risk" with cryptocurrencies as an investment or as a purchase.
- Often these scams begin with seemingly unexpected calls, texts, or emails. If that happens to you, hang up or press delete
Contact the troubleshooters:
- 918-748-1502
- problemsolvers@kjrh.com
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