HOUSTON, Texas (KTRK) — Houstonians have lost anywhere from $10,000 to $1 million per person in investment scams, oftentimes involving hard-to-recover cryptocurrency.
The FBI told 13 Investigates’ Kevin Ozebek investment schemes are becoming more sophisticated as overseas scammers use artificial intelligence and chatbots like ChatGPT to “generate communication in English in a way that’s relatable and not broken.”
“We find that even if the bad actors are located overseas, their ability to communicate with people in the United States – they can make it sound as if they’re in America or they can use these different tools to translate and figure out communication in order to really attract and lure in their victims,” Cindy Quintanilla, a forensic accountant with the FBI, said. “It’s getting a lot harder for victims or the common person to be able to decipher. ‘Oh, this isn’t real,’ or ‘this person doesn’t speak good English.’”
Victims reported losing $3.31 billion in investment scams across the U.S. last year, which was up 127% from 2021, when fraud complaints totaled $1.45 billion, according to the FBI. About $2.57 billion was lost in cryptocurrency investment scams alone last year, up 183% from 2021.
Quintanilla said she believes the scams are underreported, meaning the number of victims and economic loss is even greater.
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“What makes this a unique type of scam and unprecedented is the combination of the number of victims, the volume, and the speed that the frauds are happening,” she said. “Many times, these victims don’t know they’re victims until one week, one month, or several months out after they’ve already sent money. And because of the way that cryptocurrency moves, the fact that it’s irreversible, time is of the essence, and so, the sooner that victims are able to report it, the better.”
Quintanilla said scammers will recruit victims through several methods, for example, making personal connections on dating websites or through text messages and then drain those victims of all their finances.
“They might say, ‘Hi, Sue.’ And then you respond by saying, ‘It’s not me, it’s someone else.’ And then the conversation begins,” she said. “They like to use a lot of the encrypted apps, such as Signal or WhatsApp. They’ll reach out to you via LinkedIn. They’re using social media and different applications to reach out to their victims, and that’s how they’re targeting people.”
SEE ALSO: Facebook scammers hack accounts, then solicit friends in private messages, in growing scheme
She said scammers will search social media before even reaching out to their victim to create a profile of their target.
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“They’re able to identify what vulnerabilities that person has, whether it’s a need for a romantic partner, whether it’s a lost loved one, whether it is a need to put their kids through college or a financial instability,” Quintanilla said. “They’ll figure out what it is that their target is vulnerable to, and ultimately they’ll play on that and that’s how they’ll lure people in with a friendship, with a romantic interest or a promise to resolve their financial problems.”
She said once a scammer makes a connection, there are different directions they can take. In one scenario, she said a scammer might be quick to start talking about cryptocurrency and share how much money they’ve made, with promises of how much the victim can make through investment themselves.
The FBI says the most common age for scam victims was 30 to 49 years old and that anyone can fall victim to these scams, regardless of age, gender or educational background.
“Anyone can be a target because they are so sophisticated,” Christina Garza, a public affairs officer at the FBI’s Houston office, said. “The criminals behind these schemes are very sophisticated. This is what they do. They dedicate themselves to making you fall for it, so whatever it’s going to take on their end to make it as legit looking, as sophisticated looking, they’re going to invest that time. Why? Because if I can get a million dollars out of you, it was worth my time.”
SEE ALSO: Latino families who invested in alleged crypto scheme want justice
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To help sell the scheme, Quintanilla said scammers will also create fake websites where they lure victims to log online and see their financial balance and how much these fake investments have grown or decreased.
“They look legitimate, where you can see purported gains, and these gains are fraudulent, and people are falling victim to it because they’re used to seeing that in the traditional finance space,” she said.
She added once the scammer realizes they’ve “completely dried out” the victim, they will tell them that their money is stuck or that they need to pay taxes or customs fees in order to release it.
To make the scam worse, Quintanilla said the FBI found that victims will turn to the internet for help and get scammed all over again by fake companies, promising to help them recuperate their money.
“What people should know is that once money is out in the blockchain and it’s moved, no one can return it to you unless they are the owners or hold the keys to the wallet where that cryptocurrency is,” she said. “Sometimes the victims are being re-victimized because they are paying fake companies – and they’re charging $10,000, $15,000, $20,000 for these reports, and victims are paying them out of desperation to be able to recoup their assets.”
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Ultimately, Quintanilla said people should be wary of investing large sums of money with people they’ve never met in person.
“Never ever invest based exclusively on the advice of someone you only met online. Do your homework, do your research, do your independent research. Don’t click on links,” she said. “If it’s too good to be true, it’s probably a scam. If it’s a promise of high return on investments very quickly, it’s likely a fraud. Big red flags.”
SEE ALSO: Kidnapping scam uses artificial intelligence to clone teen girl’s voice, mother issues warning
She said the longer a victim takes to report the crime, the harder it is to recover the funds.
“What we find is initially the victim’s money will start out of an exchange of the United States, which are regulated. And ultimately, the subject will take the cryptocurrency. They’re laundering it. They’ll move it through several wallets, and then, they’ll cash it out at a foreign exchange. And so, sometimes there can be challenges,” she said.
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What to do if you’re a victim
The FBI said shame is one reason people may not report when they’re a victim of this type of crime. However, the agency encourages victims to report it as soon as possible.
“We understand why there might be some shame around it, especially if you think, ‘Well, I should have known better,’” Garza said. “Anyone can become a victim regardless of your socioeconomic status or your education level, but don’t let this shame stop you. You have been a victim of a crime. Let the authorities know. Let us help. The sooner, the better. The sooner that you’ve realized that you’ve been scammed, report it immediately, because that gives the law enforcement at least that much ahead of time to try and get behind it.”
Victims can file an internet fraud report online at IC3.gov, where you should provide as much information as possible, including transaction details, phone numbers and any communication.
IC3.gov is also the FBI’s criminal complaint center that provides information on consumer alerts regarding internet schemes, as well as the trends they’re seeing.
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“(The) overall message is for people to understand that cryptocurrency investments are a risky investment,” Quintanilla said. “They need to make sure that they’re doing their research, that they’re comfortable with the money that they’re putting in, that they’re not overextending themselves, and that they’re getting the proper advice from the right people before they make these type of investments, whether it’s through a connection that they met online or through a firm that they’re researching.”
For updates on this story, follow Kevin Ozebek on Facebook, Twitter and Instagram.
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This picture taken on March 19, 2024 shows Atsuko Sato (L) with her Japanese shiba inu dog Kabosu, … [+] best known as the logo of cryptocurrency Dogecoin, playing with students at a kindergarten in Narita, Chiba prefecture, east of Tokyo. Her fluffy face now frail, Kabosu still flashes the enigmatic smile that made her the go-to meme dog for millennials and inspired a $23 billion cryptocurrency beloved by Elon Musk. She’s best known as the logo of Dogecoin, but to Atsuko Sato, Kabosu is the elderly former rescue puppy who accompanies her every day to work at a kindergarten. (Photo by Philip FONG / AFP) / TO GO WITH Japan-internet-crypto-meme-Doge-wow, FOCUS by Katie FORSTER with Huw GRIFFITH (Photo by PHILIP FONG/AFP via Getty Images)
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Dogecoin’s market cap right now is almost $55B!
They said crypto would take over the world, but few imagined it would happen quite like this. Elon Musk’s appointment to President-elect Trump’s cabinet as head of the new Department of Government Efficiency (DOGE) has thrust a once-obscure “memecoin” onto the global stage. Cue commentators and citizens scrambling to undertake a crash course in Dogecoin.
How did this cryptocurrency, which began life as an in-joke, soar to the highest levels of government? Dogecoin was created by software engineers Billy Markus and Jackson Palmer. Markus, based in Portland, Oregon, wanted to create a cryptocurrency that was lighthearted and accessible, steering away from the complex, often intimidating world of Bitcoin.
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Meanwhile, Palmer, inspired by the viral “Doge” meme—a Shiba Inu dog captioned with Comic Sans text in broken English—suggested the name “Dogecoin” on Twitter. The meme’s playful energy captured the humor and absurdity that the creators wanted to inject into cryptocurrency.
A laptop keyboard, Elon Musk post about DOGE on X displayed on a phone screen and representation of … [+] Dogecoin cryptocurrency are seen in this illustration photo taken in Krakow, Poland on November 13, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
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Combining the open-source code of Bitcoin and Litecoin, Dogecoin was launched in December 2013. The Shiba Inu became its mascot, solidifying Dogecoin’s identity as the internet’s friendliest cryptocurrency. Its design deliberately embraced the humorous side of internet culture, and this whimsy attracted a community of fans. What began as a joke turned into something much larger than its creators ever expected.
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Why Is Dogecoin Important?
I love Pepsi’s mantra. The traditional idea of “brand” is out and “culture” is on target. In today’s fragmented media landscape, culture has become more important than brand as consumers increasingly seek personal connections and emotional resonance. Traditional advertising struggles to cut through the noise, making cultural relevance a critical strategy for brands aiming to engage audiences.
By aligning with cultural moments, movements, and experiences, companies can foster deeper emotional connections that go beyond product attributes. Younger consumers, in particular, value brands that reflect their values and participate meaningfully in their lives. Investing in cultural engagement not only strengthens brand equity but also drives long-term business performance, as it creates lasting relationships and keeps brands top of mind in an ever-evolving marketplace.
402614 01: Supermodel Cindy Crawford drinks a Pepsi in this undated company supplied photograph. … [+] Crawford will star in a new Diet Pepsi commercial during the 74th Annual Academy Awards airing March 24, 2002 on ABC-TV. The new Diet Pepsi spot updates an award-winning ad produced for regular Pepsi in 1991, in which a pair of awestruck boys watched Crawford approach a Pepsi vending machine. In the new commercial, titled “Two More Kids,” Crawford comes across a Diet Pepsi machine with sparkling new “bubbly blue” graphics at a dusty old country store while the song “Just One Look,” plays in the background. (Photo Courtesy of Pepsi/ Getty Images)
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Dogecoin’s importance lies not only in its status as a cultural phenomenon but also in its contributions to cryptocurrency adoption. Unlike Bitcoin, which has a fixed supply, Dogecoin has an unlimited supply, with over 140 billion coins in circulation as of 2024. This design keeps the currency inflationary, which many argue encourages its use for everyday transactions rather than HODLing as a store of value.
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Its simplicity and friendly branding made Dogecoin accessible to people who might otherwise be daunted by cryptocurrency. Over the years, Dogecoin has found a number of niches; most notably, it’s been embraced for charitable causes and community-driven projects.
In 2014, the Dogecoin community raised $50,000 to send the Jamaican bobsled team to the Winter Olympics. This nod to the smash-hit Disney film Cool Runnings is a brilliant summary of Dogecoin and its community: fun, light-hearted, generous – and committed to making positive change in the real world. Similarly, the Doge community raised money for talented rookie Nascar driver Josh Wise, after he struggled to attract traditional sponsorship. Other initiatives show Doge’s more serious side, such as efforts to raise money for clean water in Kenya.
KINGSTON, JAMAICA – MAY 2: The Jamaican national bobsleigh team represents Jamaica in international … [+] bobsledding competitions. The team first gained fame during their debut in the 1988 Winter Olympic Games. The team, consisting of Devon Harris, Dudley Stokes, Michael White, Freddy Powell, and last minute replacement Chris Stokes photographed May 2, 1991 on a beach in Kingston, Jamaica (Photo By Paul Harris/Getty Images)
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Projects like these are great examples of “decentralization” in action; they take a technical and – for many citizens – off-putting term and make it relevant to people’s lives in a way that’s both compelling and fun. No wonder than, in spite of its lighthearted origins, Doge has become a serious player in the market, consistently ranking among the top cryptocurrencies by market capitalization. Its loyal and growing community is a key factor in its longevity and relevance.
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What’s Elon Got to Do With It?
Elon Musk, the CEO of Tesla and SpaceX, has played a pivotal role in Dogecoin’s rise to mainstream attention. Musk’s fascination with the cryptocurrency began in 2019 when he humorously declared Dogecoin his favorite cryptocurrency. Since then, he has frequently tweeted about Dogecoin, causing significant price fluctuations.
Musk’s tweets range from memes to statements about its utility. For instance, he has referred to Dogecoin as “the People’s Crypto” and suggested that it could be used for practical purposes like payments. Musk’s influence reached new heights in 2021 when he announced that Tesla would accept Dogecoin as payment for select merchandise, adding credibility to its use as a transactional currency.
However, Musk’s involvement has not been without controversy. Critics argue that his tweets contribute to market volatility, while others see his support as a catalyst for innovation. Regardless of these debates, Musk’s endorsement has brought Dogecoin into the spotlight, attracting new users and increasing its adoption.
Who Are the Core Contributors of DogeCoin?
Dogecoin’s development has always been community-driven. After its initial launch, its creators, Markus and Palmer, stepped away from active development. For a time, this left the project without dedicated maintainers, but the community stepped in to keep it alive.
In recent years, the Dogecoin Foundation, initially established in 2014, has been revived to support the project’s long-term growth. The foundation includes prominent figures like Dogecoin Core developer Ross Nicoll and Vitalik Buterin, the co-founder of Ethereum, who serves as an advisor.
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The Dogecoin Foundation has also set up a development fund to reward contributors. In December 2022, the foundation allocated 5 million DOGE to this fund, ensuring that developers are incentivized to improve the network. This fund is overseen by core developers and community members, reflecting Dogecoin’s decentralized ethos.
UKRAINE – 2021/02/25: In this photo illustration a GitHub logo of a provider of Internet hosting for … [+] software development is seen on a smartphone screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Contributors to Dogecoin Core have focused on enhancing its functionality and security. The project’s GitHub repository remains active, with developers collaborating to improve the network’s scalability and usability. This ongoing effort underscores the community’s dedication to Dogecoin’s future.
I’ll Pay With DogeCoin
One of Dogecoin’s most practical uses is as a payment method, thanks in large part to the development of services like Bitrefill. Bitrefill is a platform that allows users to purchase gift cards, top up mobile phones, and even pay bills using cryptocurrency, including Dogecoin. This service bridges the gap between the crypto world and traditional commerce, making it easier for Dogecoin holders to spend their coins.
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TOPSHOT – A technician inspects the backside of bitcoin mining at Bitfarms in Saint Hyacinthe, … [+] Quebec on March 19, 2018. – Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works based on the blockchain technology without a central bank or single administrator. (Photo by Lars Hagberg / AFP) (Photo by LARS HAGBERG/AFP via Getty Images)
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Through Bitrefill, Dogecoin can be used to pay for everyday expenses, from groceries to entertainment. This utility enhances Dogecoin’s appeal as a functional currency rather than just a speculative asset. As more platforms like Bitrefill integrate Dogecoin, its adoption as a medium of exchange is likely to grow.
Why Is Dogecoin Important?
Dogecoin’s importance extends beyond its playful branding and celebrity endorsements. It represents the democratization of cryptocurrency, showing that digital assets can be fun, inclusive, and widely adopted. Its community-driven ethos sets it apart from other cryptocurrencies, emphasizing collaboration and accessibility.
Moreover, Dogecoin’s real-world applications are expanding. From charitable initiatives to practical use cases like payments, Dogecoin demonstrates the versatility of blockchain technology. Its low transaction fees and active development make it a viable option for micropayments, a feature that could drive adoption in emerging markets. And actually micropayments are important for developed economies too. I know some writers who would love to see publishers allow per-article access rather than yearly subscriptions, and if we can finally crack micropayments it’ll be transformative for all economies.
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PARIS, FRANCE – NOVEMBER 12: In this photo illustration, a visual representation of the digital … [+] Cryptocurrency, Dogecoin (DOGE) is on display on November 12, 2024 in Paris, France. While Donald Trump’s presidential election victory has pushed the price of Bitcoin (BTC) to a new record, cryptocurrency is not the only one exploding. Dogecoin (DOGE) is on a stratospheric trajectory, driven by the possibility of Elon Musk’s arrival in government. (Photo illustration by Chesnot/Getty Images)
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Dogecoin’s story also challenges preconceived notions about what a cryptocurrency should be. While many projects focus on solving complex technical problems, Dogecoin’s success lies in its simplicity and relatability. This approach has inspired other projects to prioritize user experience and community engagement.
Where Do I Learn More?
While Dogecoin-specific conferences are rare, the cryptocurrency is often a topic of discussion at broader blockchain and crypto events. Dogecoin’s unique position as a community-driven project makes it a frequent subject in panels and workshops focused on decentralized finance and blockchain adoption.
Community meetups also play a significant role in Dogecoin’s ecosystem. Enthusiasts around the world organize events to share knowledge, celebrate milestones, and discuss developments. These gatherings highlight the community’s passion and its role in keeping Dogecoin relevant, and reflect the friendly, collaborative ethos of the currency itself
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Online forums and social media platforms like Reddit and Twitter serve as virtual meeting spaces for Dogecoin supporters. Subreddits like r/dogecoin are hubs of activity, where users discuss everything from price movements to charitable initiatives. This digital-first approach to community-building reflects Dogecoin’s origins in the best of internet culture.
More Than A Meme. It’s A Movement
Dogecoin is more than just a meme; it’s a movement. Its journey from a joke to a top cryptocurrency highlights the power of community, the influence of cultural icons like Elon Musk, and the potential for blockchain technology to reshape how we think about money. Whether you’re buying gift cards via Bitrefill, attending a meetup, or simply enjoying its whimsical charm, Dogecoin offers something for everyone.
As Dogecoin continues to evolve, its significance in the crypto world remains undeniable. It’s a testament to the idea that sometimes, the most impactful innovations start with a laugh. And in the case of Dogecoin, that laugh has united a global community and turned a Shiba Inu into a symbol of financial empowerment.
Buying Toncoin is a relatively straightforward process that can be completed in just a few steps:
Step 1: Choose a Cryptocurrency Exchange
The first step is to choose a reputable cryptocurrency exchange that lists Toncoin. Some popular exchanges that list Toncoin include Coinbase, Binance, and Kraken. Consider factors such as fees, security, and user interface when selecting an exchange.
Step 2: Sign Up and Verify Your Account
Once you’ve chosen an exchange, create an account by providing some basic information such as your name, email address, and password. You must also verify your identity through a know-your-customer (KYC) process, which typically involves uploading an image of a government-issued ID and a selfie.
Step 3: Deposit Funds
Next, deposit funds into your exchange account using a payment method accepted by the exchange, such as a bank transfer, card, or another cryptocurrency.
Step 4: Buy Toncoin
After depositing funds, navigate to the exchange’s trading platform and search for Toncoin (TON). Click “Buy” and enter the amount of Toncoin you want. You will need to decide whether to use a market order to buy instantly or a limit order to set the price at which you would like to buy it later. Review the transaction details and confirm the purchase.
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Step 5: Store Your Toncoin
Finally, transfer your Toncoin to a secure wallet to store your coins safely. While many people opt to keep their cryptocurrencies on the exchange they used to buy them, this isn’t always the safest way to store them as it requires trusting a third party to look after your assets. Instead, you can use a self-custody wallet to store your assets, which is generally safer if set up correctly.
Now you have successfully purchased TON, remember to stay up to date on the latest news and project developments so you can manage your investment effectively. As with any investment, it’s essential to always do your research, set a budget, and only invest what you can afford to lose.
This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.
Donald Trump was viewed as the more pro-cryptocurrency presidential candidate in the 2024 election and his support for crypto could get another push with a report that his media company is acquiring a cryptocurrency trading company.
What Happened: Shares of Bakkt HoldingsBKKT are soaring Monday on reports the cryptocurrency company, which went public in October 2021 via SPAC merger, is being acquired by Trump Media & Technology Group DJT.
The media company co-founded by Trump, which owns the Truth Social platform, is in advanced talks to acquire Bakkt, according to the Financial Times. The report said Trump Media & Technology Group would acquire the cryptocurrency company, which is backed by Intercontinental ExchangeICE, in an all-share deal.
Benzinga reached out to Trump Media & Technology Group for comment on the report and will update the story accordingly. Benzinga has also contacted Bakkt for comment.
Bakkt’s first CEO was Kelly Loeffler, who was previously a member of the U.S. Senate, representing the state of Georgia as a Republican. Loeffler is helping to organize Trump’s inauguration in January and has close ties to the president-elect.
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The Intercontinental Exchange, which owns the New York Stock Exchange, owns a reported 55% of Bakkt. The exchange company would have to give approval to any such sale to the Trump media company.
Did You Know?
Why It’s Important: Bakkt said in June it was exploring strategic alternatives that could include a sale or breakup of the company.
The company previously said its crypto custody business could be wound down. This segment might not be included in the buyout, according to the report. Bakkt is planning to build a crypto trading platform geared to institutional investors.
DJT shares have experienced high volatility and an increased valuation after Trump won the 2024 election.
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Trump’s pro-crypto stance may have helped elevate Bitcoin BTC/USD and other cryptocurrencies to all-time highs following his 2024 election win.
An acquisition of Bakkt would push Trump’s media company and the president-elect deeper into the cryptocurrency sector, which comes after he promoted a crypto venture called World Liberty Financial with business partners.
BKKT, DJT Price Action: Bakkt stock was halted several times after the report and ended Monday’s session 163.04% higher at $29.71 versus a 52-week trading range of $5.57 to $68.75. Bakkt shares are down 44% year-to-date in 2024.
Trump Media & Technology stock is up 16.65% to $32.78 Monday versus a 52-week trading range of $22.55 to $79.38. Trump Media & Technology stock is up 85% year-to-date in 2024.
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