Crypto scams will rise due to coronavirus, warns FBI

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Updated on Sep 9, 2020

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Crypto scammers continue to target individuals during the pandemic, with many new approaches.
The FBI recently shared that it is expecting for these scams to keep growing.
Scammers would try to use the growing COVID-19 fears to trick people in a number of ways.

Cryptocurrency scams have been a constant in the crypto industry for ages, but now, they might become much worse. As the global coronavirus pandemic continues, there were numerous scams regarding the virus, as well. Fraudsters and scammers were never shy when it comes to using fear to trick their victims, after all.

They are now using COVID-19 fears to target people of all ages, and particularly the elderly. Thanks to coronavirus fears, scammers continue to launch even more crypto fraud schemes. Meanwhile, the popularity and acceptance of cryptocurrencies are growing, and there are now all kinds of services that accept it.

This is why the FBI felt like the number of scams will grow even further, warning the crypto enthusiasts of some of the most common ones.

FBI classifies most common scams

There are plenty of various approaches that scammers are using to trick people out of their crypto these days. One popular method is a Work-From-Home scam, where scammers pose as employers. They often ask users to accept a donation to their bank account, and deposit them into one of the emerging crypto kiosks.

This money is usually stolen from others, and if the new victim falls for the scam, they will act as a mule for illegal money.

Another common problem are blackmails, where victims would receive threats in letters and emails. Scammers would claim that they know some ‘dirty secrets,’ and demand Bitcoin payments. While this is not new, scammers are using coronavirus fears by threatening that they will release information that the victim is infected.

Continuing with coronavirus scams, fraudsters often offer non-existent equipment or treatments in exchange for crypto. This is often done via various websites offering fake products.

Fraudulent ICOs are still a major problem, as well. Scammers are still using new coins, promising major profits for those who invest in their projects. This often manages to trick those desperate to earn some money as soon as possible, but it results in them only losing more.

Fake charities have also tricked quite a few people, claiming that they will help those in need by donating. Of course, there are real charities accepting crypto, but those who wish to help need to do proper research. It is crucial that they know whom their money will go to.

How to prevent getting scammed?

The best way for people to avoid scams is to get as much information as possible and educate themselves. This includes verifying that a vendor or a charity is legitimate before sending coins. If there is a new investment opportunity, would-be investors need to conduct extensive research on it. It is also a good idea to not use personal bank accounts when it comes to work-from-home business activities. Lastly, all blackmail attempts should be immediately reported to the authorities.