The FBI has seized millions of dollars worth of cryptocurrency from scammers in Southeast Asia who were targeting American citizens.
Crypto Confidence Schemes: How They Work
These scammers use a variety of tactics to lure their victims, including:
- Dating apps: They build trust with their victims through online dating before suggesting “investment opportunities.”
- Text messages: They send unsolicited messages promising high returns on crypto investments.
- Professional meet-up groups: They join groups related to finance or business to gain credibility and target potential victims.
Once they gain trust, the scammers convince their victims to deposit funds into fraudulent crypto websites, promising huge returns. They often allow victims to withdraw small amounts to create a sense of legitimacy and encourage further investment. However, the scammers eventually lock their victims out of their accounts, stealing their money.
FBI Takes Action
The FBI tracked down multiple cryptocurrency wallets containing $6 million stolen from victims.
US Attorney Matthew M. Graves: “These fraudsters trick US citizens into believing they are transferring funds to cryptocurrency investment opportunities when, in fact, they are just unwittingly turning their money over to the fraudsters.”
He emphasized that the FBI will continue to work with partners to recover stolen funds and hold the scammers accountable, regardless of their location.
A Warning to Investors
The FBI warns the public to be cautious of investment opportunities that seem too good to be true. Always do your research before investing in any cryptocurrency project, and never give your private keys or passwords to anyone.
