Fraudsters are leveraging increased fear and uncertainty
during the COVID-19 pandemic to steal your money and launder it through the
complex cryptocurrency ecosystem.
People of all ages, including the elderly, are being
victimized by criminals through cryptocurrency-related fraud schemes.
Developments in cryptocurrency technology and an increasing number of
businesses accepting it as payment have driven the growing popularity and
accessibility of cryptocurrency. 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 FBI advises you to be on the lookout for an increase in
the following cryptocurrency fraud schemes related to COVID-19:
Blackmail Attempts. Threatening emails or letters in which
scammers claim to have access to your personal information or knowledge of your
“dirty secrets” and demand payment in Bitcoin to prevent release of this
information have been circulating for years. With the advent of COVID-19, there
is a new twist on this scam. The correspondence claims that the writer will
both release your information and infect you and/or your family with
coronavirus unless payment is sent to a Bitcoin wallet.
Work from Home Scams. Scammers, posing as employers, may ask
you to accept a “donation” of funds into your own bank account and to deposit them
into a crypto kiosk. The so-called “donation” is likely money stolen from
others. Your acceptance and transfer of the stolen money is considered illegal
money mule activity and potentially unlicensed money transmission.
Paying for Non-Existent Treatments or Equipment. Scammers
have been known to lure customers from trusted e-commerce sites offering
products that claim to prevent COVID-19 onto unrelated and unregulated
messaging sites to accept payment in cryptocurrencies for products that do not
actually exist.
Investment Scams. Criminals often pitch fraudulent
investments in a “new” and developing cryptocurrency, such as an initial coin
offering (ICO) or other investment vehicle to take a victim’s money. These
scams typically involve scenarios that seem “too good to be true”—offering
large monetary returns for a short-term, small investment. The reality is that
scammers steal the investment money for personal use and utilize the
complexities of cryptocurrency to hide the true destination of the stolen funds.
Although there are legitimate charities, investment
platforms, and e-commerce sites that accept payment in cryptocurrency, pressure
to use a virtual currency should be considered a significant red flag.
By remembering the following tips regarding finances and
cryptocurrency, you can better protect yourself from fraud:
- Verify that a vendor/charity is legitimate and accepts cryptocurrency before sending payments/donations.
- Conduct extensive research on potential investment opportunities.
- Do not use your personal bank accounts for work-from-home business-related activity or provide your bank account information to someone who is not named on the account.
- Contact lawenforcement before paying out blackmail and/or extortion attempts and before converting your money into cryptocurrency to pay them.
The FBI’s Criminal Investigative Division has an entire team
dedicated to preventing and combating cryptocurrency money laundering and
frauds. If you believe you are the victim of a fraud, or if you want to report
suspicious activity, please contact your local field office or visit the FBI’s
Internet Crime Complaint Center at ic3.gov.
For accurate and up-to-date information about COVID-19,
visit:
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