conroe, texas – You may be interested in cryptocurrencies because you want to make money in the new year. This is part of the reason why so many people fall victim to cryptocurrency scams. The Conroe man said he had done his homework and thought he was doing everything right, but he still lost a lot of money.He turned to his KPRC 2 Investigates for help.
How social media influencers target curious users
Nathan Sanders said he has been thinking about investing in cryptocurrencies for some time. He reads news and warnings and follows “cryptocurrency influencers” on social media. That’s where all the trouble started.
“They were very helpful. Like I said, they weren’t pushy or anything like that,” Sanders explained.
Wanting to learn about cryptocurrencies, Sanders was thrilled when an investor he followed reached out to him on Instagram.
“And according to them, they invested in Coinbase and made $500,000 out of $2.5 million in two and a half years,” Sanders said.
Sanders relied on using Coinbase, one of the top cryptocurrency trading sites. But here is the first red flag. The investor asked him to click on a secondary site *from Coinbase* for trading.
“So start small. They liked small amounts and made money with it,” he explained. “I was able to withdraw money in the test. It’s something like
The ability to withdraw money reassured Sanders, so he invested more. A few weeks later, Sanders was in big trouble. He was the victim of identity theft by thieves who used his information to make loans in his name. He realized that the secondary crypto site could be the problem and he wanted to withdraw the money.It was too late.
“Like just shutting it down and taking it and transferring it to their account. We’re talking about a loss of over $30,000.”
Sanders contacted Conroe Police, the FBI, and the Federal Trade Commission.
This kind of cryptocurrency scam is called a “pig slaughter” scheme
After a significant increase in such cases, the FBI recently issued a warning calling it a pig slaughter scheme.
The red flags in such cases are:
-
The “investment manager” directs you to a secondary website that looks genuine but is fake.
-
They get to know you and spend a lot of time making sure you feel comfortable.
-
Initially, you can earn money and withdraw money. This builds trust.
-
These fake sites may contain malware that infects your computer and steals your passwords.
[Read more information from the FBI in this week’s Ask Amy.]
“It’s kind of like the Wild West with cryptocurrencies,” Sanders said.
Coinbase said it is warning customers about checking secondary websites. Coinbase sent this warning about investment fraud, noting that it has extensive security measures in place to combat this type of crime.
Conroe PD and the FBI said they could not comment because the investigation was ongoing. So far, Sanders has not gotten his money back.
How to check a website for malicious links
If your crypto site has secondary links, you can use these free websites PC Risk or Site Check to check your site for malware.
Anyone who believes they have been victim of a cryptocurrency scam should file a report with the FBI’s Internet Crime Complaint Center (www.ic3.gov). You can also call the FBI Houston Field Office at 713-693-5000.
Copyright 2023 by KPRC Click2Houston – All rights reserved.
