TULSA, OK. — The holiday season is always a prime time for thieves to take advantage of unsuspecting consumers. The FBI is warning that cryptocurrency thieves are also ready to target your wallet.
Cryptocurrency is an attractive target for criminals because it is difficult for victims to recover stolen funds. Plus, most people are not familiar with cryptocurrencies and don’t understand the operations or if they are backed by banks.
“All the bad guys want crypto because it’s untraceable, they love it,” said cybersecurity expert Bill Sieglein. Transfers are also instantaneous and not regulated, making it easier for criminals to get around law enforcement, according to FBI Special Agent Keith Custer.
“Once the transaction is complete, it is irreversible and it is much more difficult for us to help a victim recover funds,” Custer said. The Federal Trade Commission reported that victims of cryptocurrency crime lost $12 million in 2018, and losses for the first quarter of 2022 reached $329 million.
Cryptocurrency schemes come in many forms. For example, scammers may pose as your utility company and threaten to turn off your power or water unless you immediately pay the supposedly overdue bill using cryptocurrency.
Natasha Clendenin-Bey experienced this first-hand when a fake utility worker called to say her power would be shut off if she didn’t pay immediately at a nearby Coin-me kiosk. Following instructions to pay an unpaid bill, she ended up losing $1,000.
“There 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,” Seiglein said.
Another popular scam involves someone contacting you on social media, claiming to be from a crypto-investment company, and offering you a job. Sherrett Jacobs was contacted on Instagram and liked the sound of the offer. She was told to invest $300, which quickly became $9,000. She was then asked to pay a one-time fee of $1,500 to withdraw the funds, which were sent through Bitcoin. She was then asked for an additional $2,500 IRS fee to complete the transaction, and only then did she realize she had been scammed.
Protect yourself and your wallet by using these tips from the Federal Trade Commission to spot any crypto-related scheme: scammers posing as companies, government agencies or online love interests, promises of large returns with “zero risk”, and unexpected calls, text messages, or emails.
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