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Rising crypto scams leave Americans reeling from billions in losses

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Rising crypto scams leave Americans reeling from billions in losses

Cryptocurrency was supposed to change the way we handle money. We kept hearing from influencers and “experts” about how it would give you full control of your cash and how secure it is. 

But scammers have shown that crypto isn’t as foolproof as promised. It’s actually pretty easy to steal. The FBI reported Americans lost $5.6 billion to crypto scams in 2023, a 45% jump from the year before. 

Over 69,000 people filed complaints with the Feds’ Internet Crime Complaint Center (IC3) last year, and most of them were aged 60 and up.

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Illustration of cryptocurrency. (Kurt “CyberGuy” Knutsson)

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The most common crypto scams

The FBI’s IC3 report highlighted various crypto scams, most of which involve strong social engineering tactics.

Investment fraud

First off, we have investment fraud. Scammers contact you via call, text, or email, promising huge (unheard of) profits if you invest in cryptocurrency. They tell you that everyone is investing and making massive returns, and if you don’t, you will miss out. This usually works on people who are eager to invest but aren’t sure how to get started — in other words, those who have the cash to invest but aren’t very tech-savvy. Losses from investment fraud schemes reported to the IC3 rose from $2.57 billion in 2022 to $3.96 billion in 2023, an increase of 53%.

Relationship-building scams

Scammers sometimes build a relationship with you to make the scam seem legit. They use dating apps, social media, professional networking sites or encrypted messaging apps to get close to their targets. Once they’ve gained your trust, they bring up cryptocurrency investment. They might claim they have some expertise or know an expert who can help you make big money. Then, they push you to use fake websites or apps — ones they control — to invest in crypto. 

To make things even worse, scammers sometimes go after the same people again by pretending to be fake crypto-recovery specialists. They promise to help recover the money the original scammers stole but end up taking even more cash and disappearing with that, too. “There is one thing these scammers typically will not do — they will not meet with you in real life,” the Feds said.

Chart detailing cryptocurrency complaints. (IC3)

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HOW TO AVOID BECOMING A MOVING SCAM VICTIM

Scammers are targeting elderly folks

Crypto scammers are primarily targeting people over 60, especially those who aren’t very familiar with technology. According to the Feds, most of the complaints they received in 2023 — about 16,806 — came from this age group. In total, they lost over $1.6 billion to these scams. Looking at complaints across all age groups, it’s clear the losses are staggering. Here’s a breakdown of the 2023 complaints and losses by age group:

  • Under 20: 858 complaints, $14.7 million in losses
  • 20-29: 6,258 complaints, $168.6 million in losses
  • 30-39: 10,849 complaints, $693.7 million in losses
  • 40-49: 10,318 complaints, $843.9 million in losses
  • 50-59: 8,918 complaints, $901.1 million in losses
  • Over 60: 16,806 complaints, $1.65 billion in losses

“While individuals in the age ranges of 30–39 and 40–49 filed the most cryptocurrency-investment fraud complaints (approximately 5,200 reports in each age group), complainants over the age of 60 reported the highest losses (over $1.24 billion),” noted the FBI report. 

Illustration of cryptocurrency scammer. (Kurt “CyberGuy” Knutsson)

DON’T FALL PREY TO THIS ELECTION SEASON’S CRAFTIEST SCAMS

What you need to know before getting yourself into crypto

There’s a lot about crypto and crypto scams that we don’t know, so to gain some expert insights, I asked Paige Schaffer, CEO of Iris Powered by Generali, provider of a proprietary identity and cyber protection platform, some questions that many of us have in mind.

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1. What steps should someone take if they suspect they’ve fallen victim to a cryptocurrency scam?

“If you suspect that you’ve fallen victim to a cryptocurrency scam, it’s crucial to act quickly to mitigate potential losses. First, immediately stop all transactions with the suspected scammer — this includes halting any ongoing investments, withdrawals, or deposits to prevent further loss. Next, change your passwords and enable two-factor authentication on all your related accounts if you haven’t done so already. This includes your email and any other linked financial accounts.”

Also, consider using a password manager to securely store and generate complex passwords. It will help you to create unique and difficult-to-crack passwords that a hacker could never guess. Second, it also keeps track of all your passwords in one place and fills passwords in for you when you’re logging into an account so that you never have to remember them yourself. The fewer passwords you remember, the less likely you will be to reuse them for your accounts. Get more details about my best expert-reviewed password managers of 2024 here.

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2. How can individuals verify the legitimacy of a cryptocurrency exchange or platform before investing?

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“Before you invest in crypto, search online for the name of the company or person and the cryptocurrency name, plus words like ‘review,’ ‘scam’ or ‘complaint.’ See what others are saying. You can also check for any news articles about the exchange. Positive news about partnerships or technological advancements can be a good sign, whereas reports of security breaches or legal issues are red flags.”

Popular exchanges like Binance, Coinbase and Kraken have a history of security and transparency, unlike many smaller, lesser-known platforms that could be fraudulent or easily hacked.

3. Are there any specific security measures people should implement to protect their digital wallets and cryptocurrency assets?

“Strong, unique passwords and two-factor authentication are a must for digital wallets and crypto assets. We also recommend hardware wallets for storing large amounts of crypto assets, as these are not connected to the internet and provide superior protection against hacking. It’s important to regularly update wallet software to ensure vulnerabilities are patched.”

4. What advice would you give to someone who’s interested in investing in cryptocurrency but is concerned about potential scams?

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“It’s wise to be concerned about scams in the crypto universe, so you’re already on the right track! Keep this mindset but know that there is a safe way to invest in cryptocurrency. Start by first investing time in researching and understanding different cryptocurrencies, including their market trends, technological foundations, and community and developer activities. Only use reputable exchanges and wallets which adhere to regulatory standards and offer robust security measures.”

HOW SCAMMERS ARE USING YOUR PERSONAL DATA FOR FINANCIAL SCAMS AND HOW TO STOP THEM

5 other important ways to protect yourself from crypto scams

1. Be skeptical of “too good to be true” offers: One of the biggest red flags in crypto scams is the promise of guaranteed, massive returns with little or no risk. Scammers will often entice people with claims of doubling or tripling their investments in a short period. Always approach these offers cautiously, as legitimate investments don’t guarantee profits. 

2. Avoid sharing personal information: Your personal information is your gateway to your crypto funds, and scammers often try to trick people into sharing sensitive details like private keys, passwords or wallet information. Never share this data with anyone, even if they claim to be from a legitimate company or exchange. Be especially cautious of phishing emails or fake customer service representatives asking for your details — reputable companies will never ask for this kind of information.

3. Have strong antivirus software installed on all of your devices: The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android & iOS devices.

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4. Watch out for unsolicited contacts: Scammers often reach out to potential victims through social media, dating apps, professional networking platforms or even email, pretending to be friends, financial advisers or crypto experts. If someone you don’t know offers an investment opportunity, claims to have inside knowledge or urges you to act quickly, it’s a major red flag.

5. Remove your personal information from the internet: Getting your personal information off the web is key to stopping scammers from contacting you in the first place. With data removal services, you can remove your data from databases and websites that expose it to cybercriminals. By taking this step, you reduce the risk of being targeted by scammers who might otherwise use your info to trick you into downloading malware or giving up passwords to your personal accounts. Check out my top picks for data removal services here.

BEWARE OF ENCRYPTED PDFS AS THE LATEST TRICK TO DELIVER MALWARE TO YOU

Kurt’s key takeaway

While cryptocurrency might seem like a great way to make money, it’s full of risks, and I’d say steer clear unless you’re really tech-savvy. I’m not against the technology itself — it does have the potential to deliver on all the promises. However, since crypto cuts out intermediaries like banks, it also opens the door for criminals to take advantage of it for things like theft, fraud, and money laundering.

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Do you feel confident about your understanding of how cryptocurrency works, or does it still seem confusing? Let us know by writing us at Cyberguy.com/Contact

For more of my tech tips & security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter

Ask Kurt a question or let us know what stories you’d like us to cover.

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Copyright 2024 CyberGuy.com. All rights reserved.

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No, Flock isn’t threatening people for debating surveillance

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No, Flock isn’t threatening people for debating surveillance

We’re aware of at least two forged letters circulating on the internet, including this one, that purport to be cease-and-desist letters from our legal department. To be clear: these letters did not come from me or from anyone at Flock.

Flock welcomes and encourages public debate about our technology. We have not and would not seek to discourage, prevent, or prohibit such discussion and debate. In fact, we would be happy to participate in any such discussions the group in question might host in the future.

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Fake VA shoe offer targets veterans

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Fake VA shoe offer targets veterans

NEWYou can now listen to Fox News articles!

A flyer offering “free athletic shoes from VA” may look official at first glance. It uses VA-style branding, talks about health and wellness and even lists the MyVA phone number. That is what makes it so dangerous.

VA says the message falsely claims Veterans can receive free athletic shoes from VA. The agency says the promotion did not come from VA and has no connection to any official VA program.

The scam appears to be spreading through a flyer and online posts. It tells Veterans they may be eligible for free athletic shoes “at no cost to you.” It also shows popular shoe brands, steps to “redeem” shoes and a process that appears to involve a VA provider.

That may be enough to get someone to click, call, share or forward before they stop to think.

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MEDICAL IDENTITY THEFT FOLLOWS YOU INTO THE DOCTOR’S OFFICE

Veterans are being warned not to click links, scan QR codes or share personal information tied to a fake VA shoe offer. (Kira Hofmann/picture alliance via Getty Images)

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Fake VA shoe offer: what VA says

VA says the free athletic shoe promotion is fake. It did not come from an official VA program, including VPRs, Central Office or Whole Health.

That is important because the flyer borrows the look and feel of a trusted government agency. It also uses health language to make the offer sound like a wellness benefit.

But let’s be real here. A free pair of shoes can sound harmless until the next step asks for your personal details.

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Why the fake VA shoe flyer looks so believable

This scam works because it mixes familiar names with an official-looking design. The flyer uses VA branding, a health-focused message and well-known athletic shoe brands.

It also presents the offer as a benefit. That can make people feel like they may miss out if they do not act.

Scammers know that veterans and families often deal with a lot of paperwork, benefit updates and health care messages. A fake flyer can slide into that confusion and feel more believable than it should.

How scammers use real VA details to build trust

One sneaky detail stands out. The flyer lists the MyVA number, but that alone does not make the flyer real.

Scammers often mix real information with fake offers. A real phone number, real logo or familiar agency name can make people lower their guard.

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That is why you should verify the offer through VA.gov, your official VA account or your local VA facility before responding.

What the fake VA shoe offer could steal

The flyer may look like it is only about shoes. The bigger risk comes next.

A fake offer like this could lead to a phishing page, a bogus form, a QR code trap or someone asking for sensitive details. That could include your Social Security number, VA login information, health information, address, bank details or credit card number.

Scammers may also use the information to target you again. Once they know you responded to a fake VA offer, they may try a follow-up call, text or email.

DR OZ WARNS MEDICARE SCAMMERS ARE STEALING BILLIONS — AND YOUR PERSONAL INFORMATION COULD BE NEXT

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A fake flyer claiming Veterans can get free athletic shoes from VA is spreading online, but the agency says it is not tied to any official program. (U.S. Department of Veterans Affairs)

What to do if you see the fake VA shoe offer

Do not share it. Do not forward it. Do not fill out a form. Do not scan any code connected to it.

Also, do not provide personal, financial or health information because of this flyer.

Instead, warn veterans, family members and colleagues without spreading the image. A quick heads-up can help someone avoid a costly mistake.

Ways to stay safe from VA scams

A few smart habits can help you spot fake VA messages before they turn into a bigger problem.

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1) Verify the offer through VA.gov

Go directly to VA.gov or use your official VA account. Do not rely on a flyer, social media post, text message or forwarded image.

2) Do not scan QR codes or click links

A scam flyer may send you to a fake website that looks official. Type the web address yourself or search for the VA page directly.

3) Never share VA login details

Do not give anyone your VA.gov username, password or sign-in code. VA says it will not ask you to share login credentials in an email.

4) Protect personal and health information

Treat your Social Security number, address, date of birth, medical information and benefits details as sensitive. A free offer should never require that kind of information from a random form.

QR CODE EMAIL SCAM TARGETS EMPLOYEE REVIEWS

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VA says veterans should verify suspicious benefit offers through VA.gov, an official VA account or a local VA facility. (Antonio Diaz / Getty Images)

5) Call VA using a trusted number

If you have questions, contact VA through an official phone number, the VA website or your local VA facility. Do not trust contact details from a suspicious flyer alone.

6) Report the fake VA shoe offer

Veterans who suspect fraud can report it through VSAFE.gov or call 1-833-38V-SAFE. Reports help VA and other agencies track scams that target veterans.

7) Use strong antivirus protection

Strong antivirus software can help protect you if you click a bad link, scan a risky QR code or land on a fake website tied to a scam. Good protection can block malicious pages, warn you about suspicious downloads and help stop malware before it does damage. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com.

8) Consider a data removal service

Scammers often use personal details found online to make fake offers feel more believable. A data removal service can help reduce how much of your information is sitting on people-search sites, including your address, phone number and other details that can be used to target you. Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting CyberGuy.com.

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9) Take action fast if you responded

If you already clicked, scanned, called or shared information, change your VA.gov password right away. Use a trusted password manager to create and store a strong, unique password you do not use anywhere else. Turn on multifactor authentication if you have not already done that. Then watch your accounts for suspicious activity.

10) Warn others without forwarding the flyer

Tell family members, friends and veteran groups that the offer is fake, but do not send the flyer along with your warning. Even if your goal is to help, someone else may miss your warning, save the image or share it again. Instead, send a short message that says the free VA shoe offer is a scam and tell them to verify any VA benefit through VA.gov or their local VA facility.

Kurt’s key takeaways

A free pair of shoes can make you drop your guard, especially when the flyer uses VA branding and familiar shoe names. That is the whole trick. Scammers are using trust to push veterans and families toward a bad link, a fake form or a request for personal info. Slow down and verify it through VA.gov or your local VA facility. And if you want to warn someone, send them a message saying the offer is fake instead of forwarding the flyer itself. That keeps the scam from spreading.

Would this fake VA shoe offer have made you pause, or would the official-looking design have fooled you? Let us know by writing to us at CyberGuy.com.

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I spent a week using the Trump phone — it sucks

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I spent a week using the Trump phone — it sucks

The Trump phone was never a serious phone. Not when it was announced last June, in dodgy renders and with an incoherent spec sheet. Nor when Trump Mobile admitted — just two weeks later — that it wouldn’t be made in the US. Not even when the company revealed the final phone, first to me over a video call in February and then to the world in April through a short commercial with the slick sheen of AI.

It’s now on sale for $499, past the days of its tenuous, ever-shifting release dates. A few buyers even have the phone, The Verge among them, though more still seem not to.

It’s clear now that the T1 is a real phone, but that doesn’t mean it’s a serious one. Still, for the next thousand words or so, I will try to take it seriously.

$499

The Good

  • It actually exists
  • 3.5mm headphone jack
  • MicroSD card slot
  • It basically runs stock Android

A serious phone wouldn’t look like this

The T1 Phone is a curved slab of cheap gold plastic, the smartphone equivalent of a pair of knockoff wraparound Oakleys. The gold finish — more yellow in certain light, though it certainly does shine and shimmer — is tacky in every sense, with a sticky friction that makes it feel distinctly unpleasant to the touch. My phone arrived with a tiny scratch in the top-right corner.

The phone is fairly thin, and light, but its excessively curved waterfall display feels immediately dated. It also loses one of the chief advantages of that design — better in-hand feel — thanks to the oddly angular frame, which juts into my palm as I hold it.

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Almost every detail speaks to bad design. There’s the American flag logo, missing a stripe. The fact that “Trump Mobile” appears on the back twice, in two different orientations and two different fonts. Or the camera module, where the three lenses are spaced at irregular intervals.

Count the stripes.

I don’t think anything about this phone annoys me as much as the lens spacing.

God, I miss notification LEDs.

A headphone jack is less uncommon, but still pretty rare.

There are things to like. The 3.5mm headphone jack will have its fans, as will the microSD card slot inside the phone, or the fact that the phone ships with a case, charger, and braided USB cable. These are things that a certain type of Android fan has lamented the absence of for years.

I, for one, am more excited to be reviewing a phone with a notification light again, a true treat that I thought we’d lost forever. It’s a glimpse of a better world, one I didn’t expect from Trump Mobile of all companies. But like the curved screen, even these welcome touches betray that this is a dated, old-fashioned phone, one based on an old HTC design that already felt like a throwback two years ago.

A serious phone would work outside the US

I live in the UK, meaning I may well have the only Trump phone outside of North America. It cannot maintain any signal stronger than 2G, meaning I can use it for texts and calls but not for data. As best as I can tell from digging through the T1’s FCC certification documents, the phone simply doesn’t support the network bands commonly used in Europe.

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The T1 Phone isn’t sold in Europe, and that misshapen flag makes its target market clear. But even Americans get to go on vacation every once in a while. From my experience, it seems unlikely that the T1 would work anywhere in Europe and perhaps not anywhere in the world outside North America.

A serious phone would use more than the minimum hardware

At first glance, the T1’s spec sheet might seem impressive enough: a 120Hz OLED screen, a 5,000mAh battery, a triple rear camera with 50-megapixel sensors.

But the truth is you could find similar specs on almost any $200 Android phone and superior ones on phones sold at this price. Hardware like this is cheap and commodified, something that’s only beginning to change thanks to the ongoing memory crisis. Here, amusingly, the T1 is generously specced: 512GB of storage and 12GB of RAM come as standard. Those, along with the inclusion of wireless charging, are the only things that really stand out on this spec sheet.

Real gold, guaranteed.

Real gold, guaranteed.

Despite all that RAM, and Qualcomm’s modestly capable Snapdragon 7 Gen 3 chipset, the T1 is often sluggish. It sometimes stutters when switching apps or triggering animations, making even basic apps like Duolingo frustrating to use. This hardware isn’t flagship, but it should certainly be more capable than this. I can only assume Trump Mobile didn’t develop the sort of software and firmware performance optimizations that other manufacturers do, handicapping the phone from the start.

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1/16

I took the T1 Phone out with me around London to test the camera.
Photo: Dominic Preston / The Verge

I suspect the camera’s limitations are for similar reasons. The three rear lenses and single selfie camera take basic, functional photos, at least in good light — with the exception of the 8-megapixel ultrawide, which is uniformly poor.

Other phone manufacturers spend millions optimizing their image pipelines, and none of that work is evident here. Daylight photos are vivid and oversaturated, nighttime shots are noisy, and the telephoto shows no signs of electronic stabilization at all, making it feel shaky and unstable. Incredibly, by default every shot is overlaid with a strangely small T1 watermark — as if anyone should want to take credit for these photos.

1/12

While David Pierce took the excuse to test it in DC.
Photo: David Pierce / The Verge

A serious phone would have made more effort in its software

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As the Trump phone lurched haltingly toward its launch, the going assumption from many was that it would be a bloated mess, loaded with spyware, crypto apps, and MAGA-themed experiences, putting the president’s leering face front and center.

The truth is rather more mundane. It runs Android — the nearly two-year-old Android 15, to be precise — with almost no modifications at all. This is, in fact, about as close to what the nerds call “stock” Android as you’re ever likely to get these days.

The only preinstalled apps that are out of the ordinary are Truth Social, Trump’s own social media network, and Doctegrity, a telehealth platform that’s included with Trump Mobile’s $47.45 cell service. Beyond that you get a single Trump Mobile wallpaper and those photo watermarks, and that really is that.

In a sense, that’s a good thing — I’m hardly lamenting the lack of bloatware. But there’s also no sign that Trump Mobile has the ability or the intent to optimize its phone’s software or deliver any features beyond the minimum.

Truth Social comes preinstalled, though you can get rid of it.

Truth Social comes preinstalled, though you can get rid of it.

More worryingly, Trump Mobile hasn’t announced how long it will support the phone with software updates. When I spoke to executives from the company in February, they seemed confused by my question about how many Android version updates the phone would receive, though they did insist that customers won’t “be locked into what’s there today.” For now, that means a 2024 version of Android with a February 2026 security patch; I wouldn’t hold my breath for either to be updated any time soon.

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A serious company would put more effort in

In a strange way, the T1 Phone isn’t all that terrible, but only because it proves how hard it actually is to make a truly terrible phone these days. It’s easy enough to throw together the baseline hardware, stick Android on top, and call it a day. For better or worse, that’s more or less exactly what Trump Mobile has done. Between the simple software and the dated hardware features, the T1 is an oddly compelling phone for some old-school Android fans, but Trump Mobile got there entirely by mistake.

Premium.

Premium.

This isn’t a serious phone. It’s a marketing stunt that got out of hand, a way to grab attention and juice the subscriber count for an overpriced cell service with the president’s name on it.

Trump Mobile doesn’t care about this phone. And after the year of reporting on it that’s led to this review, I’m thrilled to finally say: Neither should you.

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