EL PASO: Cryptocurrency scams are not a new threat; however, the Federal Bureau of Investigation has issued a warning regarding identifying how the prevalence of scams such as “pig butchering” and social media influencer fraud can lead to substantial financial losses.
Federal officials said during a recent press conference that there are around 9,000 to 2.5 million cryptocurrencies, with bitcoin perhaps being the most well-known.
“Cryptocurrency is defined as a digital form of payment used through the Internet, offering a safe transaction method globally,” said Special Agent Jeffrey Reisinger. “However, unlike traditional credit or debit cards, transactions in cryptocurrency are irreversible, making it difficult to dispute charges.”
One of the scams with cryptocurrency has been identified as “pig butchering,” where individuals are solicited online to invest in fake cryptocurrency schemes.
“Often, these scams involve directing victims to fake wallets where all money is pooled into one account,” said Reisinger during a press conference.
In 2023, the FBI’s Internet Crime Complaint Center (IC3) received more than 69,000 complaints related to cyber-enabled crime and financial fraud involving cryptocurrency. Those complaints totaled more than US$5.6bil (RM24bil) in reported losses.
According to the FBI, most often targets are within the 40-49 age group.
“In the Midland-Odessa area, there was a reported loss of US$4.7mil (RM20.2mil), Reisinger said.
Another scam uses social media influencers to promote fake cryptocurrencies by altering videos or audio.
“Influencers with large followings are often impersonated, leading to potential victims’ direct messaging for investment advice,” Reisinger said.
While cryptocurrency losses remain significant nationwide, there are ways to protect your wallet.
Reisinger urged the public to educate themselves on cryptocurrency before investing. Additionally, he said that any cryptocurrency scams in the US should be reported to the Internet Crime Compliant Center (IC3) at www.ic3.gov.
“(The public) should also avoid any claims of a ‘government-backed’ cryptocurrency wallet,” Reisinger said. “This is false information.”
While cryptocurrency is seen as being secure, Reisinger said users should do their homework before deciding to invest.
“A lot of people are deciding they want to jump into using crypto,” he said. “But the main thing is, if you are not savvy about investing, or not very savvy about crypto, then you may want to take your time and talk to somebody before investing.” – Midland Reporter-Telegram, Texas/Tribune News Service