Bitcoin Booms, Scammers Bloom: Crypto Hits a Record High
Consider an CNBC story titled "Bitcoin rises to fresh record above $112,000, helped by Nvidia-led tech rally," which reads, “Bitcoin hit a fresh record on Wednesday afternoon as an Nvidia-led rally in equities helped push the price of the cryptocurrency higher into the stock market close.”
On the same day, I saw this MSN.com headline: "Ready for the Next Crypto Surge? Here Are the Best Tokens to Buy in 2025." Here's an excerpt: “The digital asset market is entering a fresh phase of expansion. Following the launch of Bitcoin ETFs and the surge in Ethereum Layer-2 adoption, attention is quickly shifting to infrastructure tokens that can drive utility at scale. Among them, several emerging projects are standing out due to their underlying technology, recent milestones, and the problems they aim to solve.”
But sadly, the bad actors are reading the same headlines — and taking global action in a series of crypto scams.
Just one day before, media stories pronounced: "Two charged in $650 million global crypto scam that promised 300% returns":
“The indictment, unsealed in the District of Puerto Rico, accuses Michael Shannon Sims, 48, of Georgia and Florida, and Juan Carlos Reynoso, 57, of New Jersey and Florida, of operating and promoting OmegaPro, an international crypto multi-level marketing scheme that promised investors 300% returns over 16 months through foreign exchange trading.”
TIP OF AN ICEBERG? CRYPTO SCAMS ABOUND
Just in case you think this scam was just a one-off minor story, think again.
As I researched this topic further, I was shocked by the sheer number of crypto-related scams announced in the past week, along with hundreds this year and thousands more that have surfaced over the past few years. For example, here is a small sample of media stories that I found:
Cointelegraph.com:"Secret Service seizes $400M in crypto, cold wallet among world’s largest"
“The US Secret Service has quietly seized nearly $400 million in digital assets over the past decade, amassing one of the world’s largest crypto cold wallets, Bloomberg reported Saturday, citing people familiar with the matter.
“The agency’s Global Investigative Operations Center (GIOC) has tracked funds through open-source tools, blockchain analysis, and patience, Jamie Lam, an investigative analyst with the US Secret Service, reportedly told law enforcement officials in Bermuda last month.
“The agency’s crypto trove, much of which sits in a single cold-storage wallet, results from a string of investigations into scams. Scammers lure targets into seemingly legitimate crypto investment platforms in one typical scheme. Victims often see initial profits before the sites vanish with their deposits.”
ABC7 Chicago: "Celebrity Crypto Cons: Chicago-area man Richard Lyons loses $10K to cryptocurrency scam by Elon Musk impersonator"
“Richard Lyons thought he was investing with the world's richest man. The Vietnam veteran met a fake 'Elon Musk' on a social media, and then there were dozens and dozens of direct messages back and forth.
“'He kept asking me to invest, and I seen that his name was Elon Musk,' Lyons said. 'So, I thought to myself, "Okay, it's the richest guy in the world, supposed to know what he's doing." Well, then he started asking me for money to invest in his company.'
“Lyons sent the fraudster a total of $10,000 in cryptocurrency, believing 'Elon Musk' was going to help him strike it rich. Lyons eventually realized it was a scam after several months, when he was unable to get his money back.”
AJC.com:"Atlanta crypto biz owner caught up in fraud says it’s ‘like living in a James Bond movie’"
“Marlon Williams said he was surprised to find hundreds of thousands of dollars missing from his Buckhead-based cryptocurrency startup three years ago.
“But the local entrepreneur was even more shocked when the FBI told him his former chief technology officer was actually working on behalf of North Korea’s government to steal from U.S. businesses.”
CBC: "B.C. woman lost over $500K in bitcoin in 2021 SIM swap fraud scheme, lawsuit alleges"
“A judge has ordered a B.C. woman who allegedly lost $530,000 worth of bitcoin in a 'SIM swap' fraud scheme to resolve her lawsuit out of the courts.”
Decrypt: "Inside North Korea's Hiring Scams Targeting Crypto Firms"
- “Individuals Decrypt spoke to said they had seen tactics by North Korean IT workers to get hired by foreign companies change over the past few months.
- "They believe the country is hiring foreigners to help them get through early rounds of interviews.
- "North Korea stole $1.34 billion in crypto last year.”
“Crypto scammers continue to believe they can get away with their dirty tactics. Two residents of Greater London have been sent to prison after swindling more than £1.54 million—about $2.1 million—from at least 65 people.”
TheHindu.com:"YouTube video of Trump promoting Bitcoin at a NATO Summit is a crypto scam"
“Crypto scammers are running deepfake videos of U.S. President Donald Trump as YouTube Live videos, in what seems to be an attempt to steal investors’ Bitcoin.
“Multiple ‘live’ YouTube videos featured Mr. Trump at what seemed to be a NATO press event. There, he was seen urging viewers to scan a QR code on the screen and send their Bitcoin to the specified location in order to get back double the amount.”
PYMTS.com:"Scammers Impersonate Trump Inaugural Committee to Steal Crypto"
“Federal prosecutors say scammers posed as the presidential inaugural committee to steal thousands in cryptocurrency.
“In a civil complaint filed last week — and reported on Friday (July 4) by CNBC, the U.S. attorney says the scammers used phony email addresses designed to look like they belonged to the inaugural committee to 'trick or coerce victims into providing them money.'
“It was just the difference of one letter, creating email addresses ending in
HELP, PLEASE!
So how can we detect a crypto scam? This video offers some helpful information with 10 signs to watch out for, such as including guaranteed returns, overly complex jargon or a rush to invest with limited time offers that expire in hours:
“A cryptocurrency scam is any trick or scheme designed to steal your digital currency, like bitcoin or Ethereum. Scammers also attempt to persuade you to hand over personal information or cash under the promise of crypto riches.
“Scammers love crypto because:
- "Transactions are hard — and often impossible — to reverse.
- "There’s no central authority to report to.
- "Lots of people are interested in it but don’t fully understand how it works.”
“Scammers establish emotional relationships online, then suddenly claim to have an emergency. 'I need help unlocking my wallet,' they say. Or, 'Let’s invest together!'
“These scams might unfold over weeks or months. The scammers might even show you doctored charts or apps that make it appear as though you're making money. Pig butchering scams often include a romantic angle.
“Our general advice is to avoid mixing online romance and investing — if you feel pressured to break this rule, you're likely being scammed.
“Red flags:
- "Your crush won’t video chat
- "Your crush avoids in-person meetings
- "Your crush brings up crypto out of nowhere”
FINAL THOUGHTS
As explained in many of my previous blogs over the past decade, the line between work and home life is getting blurred for many, especially for staff working remotely, but also for people accessing online financial accounts from the office.
Add in the surge in bitcoin’s value, a growing number of new crypto laws, policies and the changing cryptocurrency landscape overall, and the groundwork is laid for many more scams to come. Indeed, I expect this to be one of the fastest growing areas for fraud in 2025.
No, I am not saying that you should not invest in cryptocurrencies, nor am I opposed to buying stock in companies that purchase a large amount of cryptocurrencies.
I am saying: Do your homework. Also, watch out for scams. And ask for help if and when you are confused, but before you send cash.
Content Original Link:
" target="_blank">
