• The Vermont Department of Financial Regulation issued a warning to citizens about rising crypto investment frauds being perpetrated through popular social media sites.
• The alert was issued after a 74-year-old man lost his life savings of $340,000 in a crypto scam orchestrated over Instagram and Telegram.
• Vermonters have been asked to exercise caution and vigilance when using or investing in cryptocurrency to protect themselves from such scams.
Vermont Warns Against Crypto Investment Scams
The Vermont Department of Financial Regulation (DFR) has warned citizens against rising crypto investment frauds perpetrated over popular social media sites. This alert follows after a 74-year-old man lost his life savings of $340,000 in a crypto scam orchestrated over Instagram and Telegram.
Instagram is Top Platform for Crypto Fraud
The Federal Trade Commission (FTC) has rated Instagram as the top platform connected to crypto fraud which was also true for the 74-year-old victim in this case. He first came across SpireBit – an “international financial broker” dealing in cryptocurrencies via an Instagram post without doing any form of research or investigation into the legitimacy of the platform before creating an account. Afterward, he was contacted by a SpireBit representative over Telegram who coerced him into making investments that ultimately resulted in the loss of more than $340,000.
Crypto Scammers Use Evolving Techniques
Vermont DFR blames the rising crypto scams on con artists who devise “more complex, personalized tactics” with layers of deception including forging bank documents and statements as well as having friendly conversations with victims. To help reduce financial damage and track down criminals, Vermonters have been asked to report such frauds in a timely manner.
Justice Department Forms Anti-Crime Task Force
In response to these types of crimes, the U.S Justice Department’s National Cryptocurrency Enforcement Team has formed an anti-crime task force consisting of five US enforcement agencies which are dedicated to preventing digital currency crime.
Protect Yourself from Crypto Scams
Vermonters have been asked to exercise extreme caution and vigilance when using or investing in cryptocurrency to protect themselves from such scams. It is important for people considering investing in digital assets to do their own research before risking their funds with unknown entities online or through social media platforms like Instagram and Telegram.