The US Department of Financial Regulation (DFR) has issued a warning about the rising number of cryptocurrency investment scams taking place on prominent social media sites. A 74-year-old man just lost his whole life savings to a devious crypto fraud perpetrated on social media. The investment notice issued by the DFR underscores the need for Vermonters to exercise utmost caution and awareness. This is especially true when they opt to trade cryptocurrencies online.
According to the US Federal Trade Commission (FTC), Instagram has emerged as the leading site associated with cryptocurrency fraud. Scammers recruited the elderly victim on Instagram under the pretext of a firm called SpireBit. They represented themselves as an international financial broker dealing in cryptocurrency.
The victim made an account on SpireBit after believing the false claims and without completing any research. Soon after, he was called by a salesperson from the phony platform, who duped him into making investments. What started as a $500 investment swiftly turned into a heartbreaking loss of over $340,000. Lantsman was persuaded to invest more of his hard-earned funds after the bogus platform cleverly displayed earnings on each trade.
According to the DFR, the growth in crypto frauds is due to con artists using increasingly sophisticated and tailored approaches. They accomplish this by trapping victims with layers of deception. Furthermore, these strategies include faking bank documents and engaging in polite talks to build trust.
NEWS: 🇺🇸 #Vermont's financial agency issues an alert after a 74-year-old lost $340,000 to a cunning crypto fraud on Instagram .
— Walletor (@walletorapp) July 21, 2023
Before participating in any cryptocurrency exchange or site, people are recommended to be cautious and complete background checks. Any unusual conduct or suspicious activity should be reported to the authorities as soon as possible. This must be done in order to reduce financial damage and catch the culprits.
It is critical that everyone exercise caution while dealing with cryptocurrencies and seek the advice of financial professionals. Keep in mind if an investment offer appears to be too good to be true, it most likely is. Staying aware and being vigilant are the greatest ways to avoid falling victim to these devious schemes.