FBI responds to surge in crypto scams, including fraudulent investments and employment scams

As Bitcoin reaches all-time highs, FBI Baltimore Special Agent David Paniwozik is seeing more and more bad actors trying to cash in on cryptocurrency scams. "They want to get in on the action, try to make money, and this seems like a quick, easy way to do it," SA Paniwozik said. A major problem is that investors are still unfamiliar with the technology, making them more vulnerable to scams. SA Paniwozik warned: "Whether you want to transfer $1, hundreds of millions, or billions, there is no limit. You can seamlessly transfer it from a U.S.-controlled wallet to an overseas-controlled wallet in seconds. Scammers set up their own cryptocurrency exchanges to convince you that your investment is growing exponentially, or they say you have to pay in cryptocurrency to 'unlock' a job that offers high returns." SA Paniwozik has seen a surge in reports of employment scams involving cryptocurrency recently. Maryland reported losses from $32,033 in 2023 to $3.8 million from January to October this year. “So, in Maryland alone, the average person loses about $15,000 to $20,000 to these scams,” SA Paniwozik added. According to the FBI’s 2023 Cryptocurrency Fraud Report, cryptocurrency-related complaints account for only about 10% of total financial fraud complaints, but the amount of money stolen accounts for nearly 50% of total losses. (Scripps News)