FBI Warns Against Crypto Scams Amid Coronavirus Pandemic

FBI Warns against the increasing number of crypto scams amid the COVID-19 pandemic. The crypto scammers are continuously preying on vulnerable victims during their weakest moments and the coronavirus pandemic is the latest green pass for the scammers.

The crypto scams have progressed over the years and fraudsters are using updated and improved methods that evade the radar of law enforcement. In order to reduce the number of victims that fall for fake crypto schemes, the regulatory bodies such as the FBI warns investors to beware of these scams because some of the cams can see too good but turn out to be a major problem for the victims. According to a press release, the FBI warns against crypto scams since there will be an increase in the number of cases during the COVID-19 pandemic. The virtual currency fraudsters usually target people of different ages that hold digital currencies:

 “There are not only numerous virtual asset service providers online but also thousands of cryptocurrency kiosks located throughout the world which are exploited by criminals to facilitate their schemes. Many traditional financial crimes and money laundering schemes are now orchestrated via cryptocurrencies”.

The scammers are also taking advantage of the current fear because of the virus and this way they are able to steal from the funds of the victims. The FBI acknowledged that there are real investment schemes and platforms that accept crypto payments, there are some that pressure the users use crypto which is a major red flag. These scams could come in a few different ways such as crypto investment schemes with huge returns on investments and remote work scams where ‘’employers’’ request people to start accepting donations that are likely stolen from other people.

There are other methods that involve crypto scammers that use traditional blackmail methods in order to get their victims to succumb. The scammers use newer blackmail techniques during the COVID19 pandemic and in addition to releasing sensitive information, the scammers threaten to infect victims and their families with the virus unless they make a payment to a specified BTC wallet. Crypto scams are on the rise and scammers are using sophisticated methods to fleece the victims. FAcebook even sued one of its users to use a cloaking method that promotes fake bitcoin investment schemes.