You come across an old friend on social media. They used to talk about family, their favorite sports team and concerts they attended. But now everything is about cryptocurrency.
Maybe for a minute, you feel a tinge of regret. That old friend seems to be making money in ways you never imagined. But before you give it a second thought, you get an out-of-the-blue message. Maybe it’s the same friend, or even someone you don’t know.
And, man, do they have a deal for you.
Cryptocurrencies are a new frontier for scammers.Jeff Taylor, head of Commercial Fraud forensics for Regions Bank
Welcome to cryptocurrency investment scams. While many digital currencies are legit, scammers use the appeal of get-rich-quick schemes to part you from your hard-earned money. It’s become so bad that the United States Secret Service recently issued a warning.
“Cryptocurrencies are a new frontier for scammers,” said Jeff Taylor, head of Commercial Fraud forensics for Regions Bank. “The promise of huge returns seduces investors into contributing funds to fraudulent scams. Research the product thoroughly before investing.”
Secret Service Tips for Avoiding Cryptocurrency Investment Scams:
- Shield Yourself – Do not respond to random messages from unknown numbers. Scammers will attempt to use unsolicited messages, wrong numbers or fake profit offers to initiate a conversation and gain your trust.
- Guard Your Personal Information – Pay close attention to information about you that you share online because scammers may use it to become your “perfect match.” Scammers will exploit personal details to entice you to share even more details about yourself, especially your financial information.
- Slow Down – Use caution on social media and online dating sites, especially if someone provides you with unsolicited financial, investment and/or cryptocurrency advice – or asks you for money.
- Use Caution – Never share your personal information, especially with persons you’ve never met. Cease all communication if you are asked to transfer money or provide identifying documents like your passport.
“Cryptocurrency is appealing to scammers because there is also still a level of anonymity to it as well,” said Sue Ross, head of Fraud Prevention at Regions Bank. “If the investment opportunity sounds too good to be true, it probably is …”
According to the Secret Service, the scammers making the calls are often victims themselves. Criminal organizations lure victims to other countries with fake job opportunities, then confiscate their phones and passports upon arrival. The trafficking victims are then coerced to steal money by following a playbook with scripted conversations to regain their freedom.
Cryptocurrency is appealing to scammers because there is also still a level of anonymity to it as well. Sue Ross, head of Fraud Prevention at Regions Bank
While the information above can be helpful, people still fall for cryptocurrency investment scams. The next step is to report the crime. If you fall victim, file a report with local law enforcement, the Federal Trade Commission and the Internet Crime Complain Center. Working with other law enforcement agencies, the Secret Service can better investigate these crimes with your help.
Additional Resources from Regions.com
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The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.