Crypto investments may look like a ticket to riches, but they’re also a hotbed for scams. Whether labeled as “crypto,” “cryptocurrency,” “crypto assets,” “digital assets,” “virtual assets” or other names, DISB is warning DC residents about the rise of sophisticated crypto fraud, with losses expected to skyrocket. Don't let yourself be a victim!
Common Crypto Scams
- Investment Scams: Promises of sky-high returns with zero risk? Run! These "rug pulls," "pump and dumps," and "pig butchering" schemes often lure victims through social media or dating apps. They might show fake account balances making it seem like you’ve made money but then demand huge fees if you try to withdraw and still do not allow you to withdraw anything.
- Blackmail & Extortion: Scammers claim to have compromising photos or information and threaten to release them unless you pay up in crypto. They might even pretend you've committed a crime!
- Imposter Scams: These con artists impersonate trusted entities like banks, government agencies, or even employers. They might say your account is compromised, threaten legal action, or offer fake jobs. They often direct victims to use cryptocurrency ATMs to send money, providing step-by-step instructions, only to steal the money after it’s sent.
Protect Yourself: Be Crypto Smart!
- Do Your Research: Don't rush into anything. Understand the cryptocurrency, its technology, and the people behind it. Look for white papers, genuine reviews, and reliable information on trusted websites. Be wary of celebrity endorsements – they are often fake.
- Safeguard Your Wallet: Never share your private key. It's like the password to your crypto fortune. Once you give it to someone, they have the ability to take your crypto at any time. Anyone who asks for it is a scammer.
- Download Apps from Official Sources: Stick to the Apple App Store or Google Play Store. Even then, double-check the app's legitimacy.
- Be Skeptical of Social Media: Crypto scams run rampant on social media. Don't believe everything you see.
- Ignore Cold Calls and Messages: Unsolicited investment offers are almost always scams.
- Crypto ATMs: Proceed with Caution: Never use a crypto ATM (also known as a “BTM”) to send money to someone who instructs you to do this to "protect" your money or due to a legal threat. This is a classic imposter scam. Verify the identity of anyone claiming to be from a bank, government agency, or company by contacting them directly through official channels.
Report Crypto Fraud
If you've been targeted by a crypto scam, report it to:
- DISB Enforcement and Consumer Protection Division, 202.727.8000
- Your local police department
- The FBI's Internet Crime Complaint Center (IC3)
Don't let scammers steal your crypto! Stay informed and stay safe.