CRYPTOCURRENCY SCAMS
Let’s first start with the terms. Blockchain is the technology that enables the existence of cryptocurrency. The best known cryptocurrency is referred to as Bitcoin. Bitcoin is the one for which blockchain technology, as is currently known, was created. Cryptocurrency is a medium of exchange, such as the U.S. dollar, but it’s digital and uses cryptographic techniques and it’s protocol to verify the transfer of funds and control the creation of monetary units.
Now for the bottom line, crypto comes with many risks, including, but not limited, to scams. To spot the scams, never believe promises that you’ll get a big payout, make money, or earn guaranteed returns. There are no guarantees of crypto investment riches.
Scammers will use common bonds to build trust. They’ll pretend to share things in common with you such as your hobbies, profession religion, or even ethnicity. The reasoning behind this is because when they offer crypto investment advice they assume you’ll be more likely to listen. Once they involve you in a conversation they’ll ask you for money to invest in crypto, they’ll create a reason that you need to send a payment in crypto, or money.
Here are two examples of popular crypto scams:
Bitcoin Investment
Scammers will contact people and tell them they’re experienced “investment managers.” The alleged investment managers claim to have made millions by investing in cryptocurrency and promise their intended victims that they too will make money by investing. Scammers will always ask for money up front to get started. Then, instead of actually investing your money, the scammers will just take the money and you’ll never hear from them again.
Romance Scams
The scammer in a romance scam will usually try to earn the trust of the victim by appealing to their emotional state at the time. This is widely accomplished through online dating and social networking sites.
Their next step is to create a deceitful financial emergency. The victim is conned into thinking they’re aiding their “perfect online dating match.” This style of scam has destroyed hundreds of thousands of peoples lives, from stealing their hard earned savings, to depleting their inheritance accounts. It’s a daily tragedy in the world day. The scammer has only one purpose, which is to touch the victim’s heart and then use the victim’s emotions for their own personal gain.
According to a recent report from the FBI, they state in part, “What begins as a whirlwind online romance could turn into an investment opportunity gone bad for victims of romance scams. Also referred to as confidence fraud, romance scams begin when well-rehearsed criminals build relationships with vulnerable users of dating and social media networking sites. Upon gaining the trust of their victims, romance scammers request money for false purposes including medical, travel, or legal fees. The FBI has also identified a trend in which these criminals are increasingly pressuring victims to invest in cryptocurrency, which could lead to increased victimization in 2023.
Year after year, romance scams result in one of the highest reported financial losses when compared to other Internet-facilitated crimes. According to a preliminary report from the FBI’s Internet Crime Complaint Center (IC3), a total of 19,050 victims reported losing $739,030,292 to romance scammers in 2022. Unfortunately, some victims hesitate to file a report due to embarrassment or shame. In 2023, the FBI anticipates a higher reported financial loss due to a trend in International Crypto Investment Fraud as part of romance scams.
“Online dating is common today, but unfortunately scammers also thrive on those same sites,” said Sherri E. Onks, Special Agent in Charge of FBI Jacksonville. “Whether you’re looking for love or a friendship online, be sure you first understand the risk of being exploited. Remember, a scammer will always eventually ask you for something, so set a boundary early on and never, ever send money to someone you’ve never met.”
Romance Scams can happen to anyone, women, and men. If you suspect your online relationship is a scam, cease all contact immediately and report the incident to your financial institution and the FBI at www.ic3.gov.
Our investigators at Sunset Blvd. Investigations have dealt with many of these criminals involved in cryptocurrency scams. On a closing note, never mix online dating and investment advice. If you come across someone on a dating site, and they bring up the topic on how you can invest in cryptocurrency, or, even worse, they ask you to send them crypto, immediately discontinue any further communication with them. This will prevent you from becoming yet another victim of a crypto scam!
Meet our investigators: http://www.sunsetblvdinv.com/Our-Team.aspx
Professional Memberships:
- The Professional Background Screening Association (PBSA) https://thepbsa.org/
- Southern California Fraud Investigators Association (SCFIA) https://scfia.org/
- World Association of Detectives (WAD) https://www.wad.net/
- California Association of Licensed Investigators (CALI) https://www.cali-pi.org/
- California Narcotics Officers’ Association (CNOA) – https://www.cnoa.org/
Need a Private Investigator in Los Angeles?
Sunset Blvd. Investigations, Inc. provides seasoned and effective private investigation services for clients throughout the United States and Internationally. Our combined 80 years as law enforcement officers coupled with our private investigative experience distinguishes us from all other investigation businesses. If you’re in need of a private investigator, we’re here to assist you in any way we can.
Call today at 888-406-0149 to contact us and request a consultation!
Need a private investigator?
Sunset Blvd. Investigations, Inc. provides seasoned and effective private investigation services for clients throughout the United States and Internationally. Our combined 80 years as law enforcement officers coupled with our private investigative experience distinguishes us from all other investigation businesses. If you’re in need of a private investigator, we’re here to assist you in any way we can.
