New York Attorney General Seeks Recovery Of $2 Million In Crypto Scam

According to Cointelegraph, New York Attorney General Letitia James has filed a lawsuit to recover over $2 million in cryptocurrency that was fraudulently obtained from victims who were misled into purchasing crypto under the guise of securing remote work opportunities. The legal action aims to address the deceptive practices that targeted individuals seeking flexible employment. The scam involved sending text messages to New Yorkers, promising lucrative and flexible job opportunities. Victims were instructed to create cryptocurrency accounts, deposit funds, and review products on fake websites that mimicked legitimate brands. They were told to maintain a crypto balance equivalent to or exceeding the cost of the products they reviewed, with assurances that they were not actually purchasing the products. Instead, their funds were purportedly needed to "legitimize" the data. In return, victims were promised a refund of their money along with a commission, which they never received. The network of scammers reached out to victims directly via text messages. With the assistance of the US Secret Service, the stolen cryptocurrency has been frozen. Attorney General James has urged the public to be wary of unsolicited text messages from unknown senders offering jobs or other opportunities, emphasizing the cruelty and unacceptability of deceiving individuals seeking remote work to support their families. This incident follows a warning from the US Federal Bureau of Investigation (FBI) last year about an increase in work-from-home job scams. In June 2024, the FBI highlighted that scammers were contacting potential victims through unsolicited calls or messages, offering seemingly simple jobs such as rating restaurants or "optimizing" services by repeatedly clicking a button. Victims were similarly instructed to make cryptocurrency payments to the fake employer to "unlock" more work, but the payments were diverted directly to the scammers. The FBI cautioned against making cryptocurrency payments as part of a job, underscoring the need for vigilance against such fraudulent schemes.