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TULSA, Okla. \u2014 The holidays may come with pressure to give fancy gifts or look like a big spender.<\/p>\n
The FBI cautions cryptocurrency crooks are eager to pounce on your wallet. Con artists adore cryptocurrency because it is difficult for victims to recover stolen funds.<\/p>\n
Most people have heard about cryptocurrency, but not as many know how it works or that it is not backed by banks or federal deposit insurance.<\/p>\n
\u201cI mean the bad guys all want cryptocurrency because it\u2019s not traceable, they love that,” cyber security expert Bill Sieglein.<\/p>\n
It is also unregulated, and transfers are instantaneous. Those qualities make transactions easier to evade law enforcement according to FBI Special Agent, Keith Custer.<\/p>\n
\u201cOnce the transaction is completed, it’s irreversible and it’s much more difficult for us to assist a victim in recovering funds,” Custer said.<\/p>\n
It has also caused an explosion in cryptocurrency crime. The Federal Trade Commission says in 2018, victims of cryptocurrency crimes lost a total of $12 million. In just the first quarter of 2022 reported losses hit $329 million.<\/p>\n
Cryptocurrency schemes take many forms such as someone posing as your utility company threatening to cut off your power or water unless you immediately pay an alleged overdue bill with cryptocurrency.<\/p>\n
It happened to Natasha Clendenin-Bey. The phony utility worker called claiming the power would be cut off to her business if she didn\u2019t pay immediately at the nearest Coin-me kiosk.<\/p>\n
She said as she went to that machine using cryptocurrency to pay bills he told her, \u201cHe\u2019s still on the phone this entire time, and I\u2019m standing in front of the machine\u2026 he says no, we\u2019ve started something new and we\u2019re doing Bitcoin, you can pay, and because I\u2019m just distraught, I\u2019m trying to get back to the store before my appointment comes, I\u2019m like whatever.\u201d<\/p>\n
She ended up losing $1,000 by following the instructions to pay a bill she never owed.<\/p>\n
\u201cThere are cryptocurrency ATMs and all of the criminals know where they are and they are very happy to give you instructions on how to go there and get the cryptocurrency for them,” Seiglein said.<\/p>\n
Cybercrooks also use another popular scam. Sherrett Jacobs didn\u2019t owe any money, she wanted to make some. When someone claiming to be with a crypto investment company contacted her on Instagram, she thought it sounded good. \u201cThey started investing on my behalf and I was able to see on my dashboard that the money was literally going up in increments. It never went down; it only went up over the course of three days.\u201d<\/p>\n
She claims her $300 investment had suddenly become $9,000. \u201cThey told me that I had to pay a one-time fee of $1,500 in order to withdraw this money.\u201d<\/p>\n
She sent the money via Bitcoin.<\/p>\n
\u201cI got an email from their \u201ccustomer service,\u201d she said, \u201cthat in order for the withdrawal to be processed, I had to pay the IRS a fee of $2,500.\u201d<\/p>\n
Jacobs went to her brother who is a crypto investor. He confirmed that over those three days her investment would\u2019ve gone down not up, and that company was not who it claimed to be.<\/p>\n
To protect yourself and your real wallet the Federal Trade Commission offers this advice for spotting crypto-related schemes:<\/p>\n
Contact the Problem Solvers: <\/b><\/p>\n Stay in touch with us anytime, anywhere —<\/i><\/b><\/p>\n<\/div>\n window.fbAsyncInit = function() { appId : ‘580325898666224’,<\/p>\n xfbml : true,\n
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