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FBI Report Shows Colorado Residents Getting Duped By Crypto Scams


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Residents of Colorado have become major targets for crypto criminals according to a new report issued by the Federal Bureau of Investigation (FBI).

The FBI Says Many People in Colorado Have Been Targeted

The document says that millions of dollars have been stolen from crypto traders and normal, everyday residents in the Centennial State. Many of the scams in question involve stable assets such as Tether and USD Coin (USDC). In a statement, the FBI mentioned:

In a common scenario, the victim is approached on a social media platform, dating app, or discussion forum with a cryptocurrency investment opportunity. The victim is directed to a link or phone number to set up the investment account. This is a scam. The link or phone number is controlled by the fraudster, who has set up a fictitious support site. Once the victim transfers the funds, the fraudster disappears with the money.

The FBI details as many as five recent examples of Colorado residents being targeted. Altogether, they lost more than $4 million to crypto scams. The schemes involved Tether and wound up stealing more than $600K from a 52-year-old man living in Aurora; about $1.3 million from a 61-year-old woman in Denver; $350K from a 62-year-old man in Evergreen; and $1.2 million from a pair in their late 40s in Parker.

For the most part, these scams all take on a similar form in which an individual comes forward posing as an investment manager. They reach out to the alleged victims and tell them about brand new investment opportunities that they’re not going to want to miss. They then direct them to phony websites (under the control of scammers and hackers) and the victims see that profits are rising and that portfolios appear promising.

They start out by investing a little money and quickly see returns. From there, however, when they try to make a withdrawal, they are told that they cannot do so unless they invest more. The FBI said:

The advice and offers to help you invest in cryptocurrency are nothing but scams. If you send them crypto, or money of any kind, it’ll be gone, and you typically won’t get it back.

Doesn’t This Sound Familiar?

It’s the same way in which romance scams have operated for the past several years, only instead of coming off as an investment or wealth manager, the scammer comes off as a potential date or person looking for love. After a while of talking to a potential victim and getting to know them, they tell them about an investment opportunity that the victim ultimately takes part in.

From there, they see returns, but when they try to make a withdrawal, they’re required to pay more. Much of the time, they learn what’s going on too late and they never see their money again.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.


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