Crypto scams are difficult to spot and stop, but the Federal Bureau of Investigation’s latest operation is targeting crypto scams before they start. NBC6’s Sasha Jones reports
Crypto scams are difficult to spot and stop, but the Federal Bureau of Investigation’s latest operation is targeting crypto scams before they start.
"Operation Level Up" helps to identify ongoing cryptocurrency investment fraud, according to the FBI.
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WATCH HEREZacharia Baldwin, a supervisory special agent, says the operation works to notify potential cryptocurrency scam victims before they lose money. So far, the FBI says roughly 4,300 victims have been notified with an estimated savings of more than $285 million since January 2024.
Baldwin points out many victims fall into a scam known as “pig butchering.”
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“So, it's that feeding of the pig slowly or bleeding it slowly to the ultimate slaughter. So, they are doing it slowly until they can get everything out of you,” Baldwin said.
It’s a scam that starts after the victim makes a new connection. Overtime, this new connection develops a relationship with the victim. The end goal is to persuade the victim to invest in cryptocurrency. But Baldwin explains that most times this money never makes it into a cryptocurrency platform.
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“Once the money is sent, it's not touching the platform that's intended or alleged to be touching. It's immediately laundered overseas,” Baldwin explained.
He says most victims don’t know they are being scammed. They believe they are investing money with a trusted friend or romantic partner.
But now there are ways to track this activity and identify when a scam is taking place.
“Now we're using sophisticated techniques, we're able to identify it ongoing and try to intercept that scam and stop it from continuing,” Baldwin said.
According to the FBI, 76% of the roughly 4,323 victims notified by the FBI were unaware they were being scammed.
The FBI says they notified many victims by phone. Getting a phone call from the FBI could seem like a scam for some unsuspecting victims. It’s why Baldwin says victims should take steps to verify they are actually talking to the FBI by hanging up and calling their local office themselves. The local office can verify whether an agent has given you a call.
“We do know that there are a lot of government impersonation schemes. Some things to look out for also is we will never ask you to send us money. We will never ask you to transfer money to a new account. And then, we'll never ask you for personal identifiable information or any passwords,” Baldwin said.
Avoiding a crypto scam starts with knowing how to safeguard against it. For starters, be cautious of messages sent from someone you don’t know or haven’t met. Be leery of moving any conversation to an encrypted messaging service. Remember, claims of high returns or get-rich-quick promises are also a sign that it could be a scam.
If you believe you have been the victim, you should immediately stop sending money and file a report with the FBI’s Internet Crime Complaint Center.
