Cash News
FBI warns of increasing cryptocurrency investment fraud in Maryland
Updated: 2:52 PM EDT Sep 24, 2024
The FBI is warning Marylanders of an increase in cryptocurrency investment fraud that resulted in almost $54.5 million in losses for part of this year.According to the FBI, the losses were incurred due to scams, commonly described as “pig butchering,” that affected 482 Marylanders from January to August, according to the FBI’s latest Internet Crime Complaint Center data. In 2023, 668 Marylanders reported losing $69.1 million.An FBI report released Monday revealed these schemes defrauded more than $5.6 billion from Americans last year, representing a 45% jump in losses from 2022. The FBI said it received some 70,000 complaints in 2023.What is cryptocurrency investment fraud?The FBI said scammers manipulate victims, convincing them to deposit money into financial “investments” using cryptocurrency.What actually happens is that the investments are fake and that all of the victims’ money is stolen, the FBI said.”Bottom line: never trust someone you haven’t met who claims to be an expert and can help you make money through a can’t-miss investment opportunity,” Bill DelBagno, FBI-Baltimore special agent in charge, said in a statement. “We are seeing victims in their 20s and 30s, all the way up to our senior citizens, who are absolutely devastated by these schemes.”How do I prevent it?The FBI offered the following tips to recognize and avoid this scam:If an unknown individual contacts you, do not release any financial or personal identifying information and do not send any money.Do not invest per the advice of someone you meet solely online.Verify the validity of any investment opportunity from strangers or long-lost contacts on social media websites.Be on the lookout for domain names that impersonate legitimate financial institutions, especially cryptocurrency exchanges.Misspelled URLs, often with a slight deviation from the actual financial institutions’ website, may be fake.Do not download or use suspicious looking apps as a tool for investing unless you can verify the legitimacy of the app.If an investment opportunity sounds too good to be true, it likely is. Be cautious of get-rich-quick schemes.Confirm the validity of any investment opportunity or cryptocurrency investment website or app.If you already invested funds and believe you are a victim of a scheme, do not pay any additional fees or taxes to withdraw your money.Do not pay for services that claim to be able to recover lost funds.What should I do if I fall victim?Anyone who falls victim to a cryptocurrency investment scam, or know someone who has, is asked to report it online at ic3.gov or call the FBI Baltimore field office at 410-265-8080. Provide as much transaction information as possible, including cryptocurrency addresses, amount and type of cryptocurrency, date and time and transaction ID.
The FBI is warning Marylanders of an increase in cryptocurrency investment fraud that resulted in almost $54.5 million in losses for part of this year.
According to the FBI, the losses were incurred due to scams, commonly described as “pig butchering,” that affected 482 Marylanders from January to August, according to the FBI’s latest Internet Crime Complaint Center data. In 2023, 668 Marylanders reported losing $69.1 million.
An FBI report released Monday revealed these schemes defrauded more than $5.6 billion from Americans last year, representing a 45% jump in losses from 2022. The FBI said it received some 70,000 complaints in 2023.
What is cryptocurrency investment fraud?
The FBI said scammers manipulate victims, convincing them to deposit money into financial “investments” using cryptocurrency.
What actually happens is that the investments are fake and that all of the victims’ money is stolen, the FBI said.
“Bottom line: never trust someone you haven’t met who claims to be an expert and can help you make money through a can’t-miss investment opportunity,” Bill DelBagno, FBI-Baltimore special agent in charge, said in a statement. “We are seeing victims in their 20s and 30s, all the way up to our senior citizens, who are absolutely devastated by these schemes.”
How do I prevent it?
The FBI offered the following tips to recognize and avoid this scam:
- If an unknown individual contacts you, do not release any financial or personal identifying information and do not send any money.
- Do not invest per the advice of someone you meet solely online.
- Verify the validity of any investment opportunity from strangers or long-lost contacts on social media websites.
- Be on the lookout for domain names that impersonate legitimate financial institutions, especially cryptocurrency exchanges.
- Misspelled URLs, often with a slight deviation from the actual financial institutions’ website, may be fake.
- Do not download or use suspicious looking apps as a tool for investing unless you can verify the legitimacy of the app.
- If an investment opportunity sounds too good to be true, it likely is. Be cautious of get-rich-quick schemes.
- Confirm the validity of any investment opportunity or cryptocurrency investment website or app.
- If you already invested funds and believe you are a victim of a scheme, do not pay any additional fees or taxes to withdraw your money.
- Do not pay for services that claim to be able to recover lost funds.
What should I do if I fall victim?
Anyone who falls victim to a cryptocurrency investment scam, or know someone who has, is asked to report it online at ic3.gov or call the FBI Baltimore field office at 410-265-8080. Provide as much transaction information as possible, including cryptocurrency addresses, amount and type of cryptocurrency, date and time and transaction ID.