• The FBI issued a report stating that millions of dollars have been stolen from crypto traders and normal residents in Colorado via crypto scams.
• These scams involve stable assets such as Tether and USD Coin (USDC) and involve fraudsters setting up fictitious websites to dupe victims out of money.
• Five recent cases have resulted in victims losing more than $4 million, which is similar to romance scams where the victim is redirected to phony websites under the control of scammers.
FBI Report Shows Colorado Residents Getting Duped By Crypto Scams
The Federal Bureau of Investigation (FBI) has released a report showing that residents of Colorado have become major targets for crypto criminals. Millions of dollars have been stolen from crypto traders and normal, everyday people in the Centennial State, with many scams involving stable assets such as Tether and USD Coin (USDC).
How it Works
In a common scenario, the victim is approached on a social media platform, dating app, or discussion forum with a cryptocurrency investment opportunity. The fraudster directs them to a link or phone number to set up the investment account – which is actually controlled by the scammer – before disappearing with any funds transferred.
The FBI detailed five recent examples of Colorado residents being targeted and losing more than $4 million in total. This included over $600K from an Aurora resident; about $1.3 million from someone in Denver; $350K from an Evergreen resident; and $1.2 million from a Parker pair in their late 40s.
Similar to Romance Scams
These schemes typically involve an individual posing as an investment manager who offers new investment opportunities which are too good to miss out on when directed towards phony websites under the control of scammers or hackers. Victims start out by investing small amounts but can’t make withdrawals without investing more first – resulting in them losing all their funds eventually.
Advice From The FBI
The FBI warned that “the advice and offers to help you invest in cryptocurrency are nothing but scams” and advised against sending any form of money or cryptocurrency if approached with this type of offer.