Crypto
BBB warns of rise in investment scams involving cryptocurrency
The Better Business Bureau has issued a new warning involving investment scams and something people may not be too familiar with — cryptocurrency.
Reports of investment scams hit an all-time high in 2023, according to the BBB.
Con artists will often use romance to lure you in – and oftentimes, they use cryptocurrency as well, according to the organization. It’s that layer of confusion that makes it easier for criminals to go undetected, the BBB explained.
The scam often starts with unsolicited investment advice through social media or WhatsApp. For instance, you should also be wary when someone you’ve met on a dating site or online mentions cryptocurrency or an investment opportunity and tries to sign you up.
In other cases, people sign up after seeing posts about investments on a friend or family member’s Facebook page. Unbeknownst to them, those Facebook pages have usually been hacked.
According to the BBB, the average amount of money lost to investment scams rose from $1,000 in 2021 to close to $6,000 this year.
“We’re seeing a lot with cryptocurrency where they want you to buy investment cryptocurrency because nobody really understands that,” said Steve Bernas with the BBB of Chicago and Northern Illinois.
Consumers lost more than $4.6 billion to investment scams last year – more than any other scam category, according to the Federal Trade Commission.
Below are some key takeaways:
- Don’t believe any investment opportunity that uses the word “guaranteed” or offers “low” or “no risk” with “high return.”
- Be on alert for high pressure sales tactics. Many risky investments are sold at “opportunity meetings” or other high pressure situations where someone shares a fictional success story. Those people are usually paid and may be lying.
- And be sure to ask – how will this investment make you money? in some cases, you may be required to recruit others. That can often mean you’re involved in a pyramid scheme.
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Westlake police say cryptocurrency scam cost woman over $5,000
WESTLAKE, Ohio – A convenience store clerk at 1:30 p.m. on Nov. 26 alerted a police dispatcher that a female customer was feeding large amounts of cash into a cryptocurrency ATM at the store on Center Ridge Road at Dover Center Road.
The clerk said the customer would not believe the clerk’s warning that she was being scammed.
Officers arrived to find the 71-year-old still “anxiously depositing” cash into the machine. Officers told her to stop, but she did not believe the uniformed men. The officers talked to her for several minutes before she finally believed that there was an issue. She was still on the phone with the scammer at the time.
The incident started that morning when the victim received a pop-up message on her home computer instructing her to call a provided support phone number due to a supposed issue with the computer’s operating system. She called the number and was connected to a man who claimed he was a representative from Apple, according to a police department press release.
The man talked her into allowing him remote access to her computer while he asked for her bank information. The scammer talked the victim into believing that there was a problem with her accounts, and she was at risk of losing $18,000 in connection with pornographic websites out of China or Mexico.
She was connected to a fake fraud department for her bank, and another scammer persuaded her to go to a bank and withdraw as much cash as they would allow. The scammer even told her to give the teller a story about needing cash to buy a car. The perpetrator kept the woman on the phone as she took out cash and traveled to the crypto ATM. The victim had deposited approximately $5,500 before officers persuaded her to stop. The Westlake Detective Bureau is attempting to recover the lost funds.
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Read more from the West Shore Sun.
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