• The FBI has released a report showing that millions of dollars have been stolen from Colorado crypto traders and everyday residents.
• Scams typically involve stable assets like Tether and USD Coin (USDC) with victims being directed to a link or phone number controlled by the fraudster.
• These scams usually come in the form of someone posing as an investment manager, offering phony websites for investments which lead to losses when withdrawals are attempted.

FBI Report Shows Colorado Residents Getting Duped By Crypto Scams

The Federal Bureau of Investigation (FBI) recently issued a statement regarding crypto criminals targeting Colorado residents and stealing millions of dollars from them. Many of these scams involve Tether and USD Coin (USDC). In many cases, victims are approached on social media platforms or discussion forums with offers of cryptocurrency investments. They are then directed to a link or phone number controlled by the fraudsters, who have set up fictitious support sites. Once funds are transferred, they disappear with the money.

Examples Of Victims

The FBI mentioned five examples of recent cases involving Coloradans losing money due to crypto scams:
• A 52-year-old man living in Aurora lost more than $600K;
• A 61-year-old woman in Denver lost about $1.3 million;
• A 62-year-old man in Evergreen lost $350K;
• A pair in their late 40s living in Parker lost $1.2 million.

How Do These Scams Work?

In most scenarios, an individual posing as an investment manager contacts the alleged victim about new investment opportunities that cannot be missed out on. They then direct them to phony websites under their control where profits appear rising and portfolios seem promising at first glance. When victims try to make withdrawals however, they are told that they need to invest more money before they can do so – leading to losses for them as the fraudsters disappear with their funds.

Warning From The FBI

The FBI warns people not to fall prey to these schemes, saying that “the advice and offers to help you invest in cryptocurrency are nothing but scams” and if you send any kind of funds “it’ll be gone, and you typically won’t get it back”

Similarity To Romance Scams

These crypto scams share similarities with romance scams that have been occurring for years – only this time instead of posing as potential dates or persons looking for love, scammers pose as investment managers offering impossible gains from investing in cryptocurrencies which turn out not be true when withdrawals are attempted .

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