Missouri Warns of Surge in Cryptocurrency Scams, Targeting Older Adults
The Missouri State Highway Patrol (MSHP) is warning residents about a significant increase in cryptocurrency fraud cases across the state. Scammers are increasingly targeting older adults, but anyone can be affected, with victims often experiencing substantial financial losses. The warning comes as law enforcement agencies nationwide report a rise in these types of schemes.
According to the MSHP’s Division of Drug and Crime Control, criminals are leveraging a wide range of communication channels – including the internet, social media, email, dating sites, text messages, encrypted messaging apps and phone calls – to pressure victims into sending money using cryptocurrencies like Bitcoin and other virtual currencies. These scams are carefully designed to appear legitimate, often relying on a sense of urgency, instilling fear, or promising guaranteed returns.
A key tactic employed by scammers involves building trust with victims over an extended period before requesting funds. This “grooming” process allows them to establish a rapport and lower the victim’s guard, making them more susceptible to fraudulent requests. Brad Germann of the Missouri Highway Patrol emphasized the difficulty in recovering funds once they are transferred. “It’s very hard to track cryptocurrency wallets and trading. So once the money leaves the account, it is very hard to trace because a lot of the accounts are manipulated,” he stated. “They’re added, deleted in very short notices, money’s transferred, and recovering that money is very difficult, more so than wire transfers.”
Common Warning Signs of Cryptocurrency Fraud
The MSHP has outlined several warning signs that individuals should be aware of:
- Pressure to Act Quickly: Scammers often create a false sense of urgency, claiming immediate action is needed to avoid arrest, financial loss, or legal trouble.
- Requests for Cryptocurrency or Alternative Payments: Demands for payment in cryptocurrency, gift cards, wire transfers, or through Bitcoin ATMs (kiosks) are red flags.
- Unsolicited Contact: Be wary of unexpected contact from individuals claiming to represent government agencies, financial institutions, tech support, or investment firms.
- Guaranteed Profits: Promises of guaranteed profits or “risk-free” investment opportunities are almost always scams.
- Secrecy: Instructions to keep the transaction secret, including requests not to inform family, friends, law enforcement, or bank employees, are a major warning sign.
- Online Romance Schemes: Relationships formed online that quickly transition into requests for money or investment assistance should be treated with extreme caution.
- Requests for Personal Information: Requests for personal or financial information sent through email, text message, or social media are often part of a phishing scheme.
Protecting Yourself from Cryptocurrency Scams
Authorities stress the importance of vigilance and caution when dealing with financial matters, particularly those involving cryptocurrency. Several key reminders can help individuals protect themselves:
- Legitimate Agencies Don’t Use Crypto: Legitimate government agencies and law enforcement will never request payment in cryptocurrency, gift cards, or wire transfers.
- Time is of the Essence: Prompt reporting of suspected fraud is crucial to potentially recovering assets.
- Beware of Impersonation: Scammers frequently impersonate trusted organizations or individuals to gain credibility.
- Protect Your Seed Phrase: Never share your cryptocurrency wallet’s seed phrase with anyone. Legitimate platforms will never ask for it.
- Verify Websites and Apps: Always confirm the legitimacy of websites and apps before logging in to your cryptocurrency accounts.
- Bitcoin Kiosk Caution: If asked to deposit cash into a Bitcoin kiosk, carefully read the kiosk’s disclaimers, as they often include fraud warnings.
The MSHP recommends taking time to verify any requests for money or information, discussing financial decisions with trusted family members, friends, or financial professionals, and reporting suspected fraud immediately to local law enforcement. Utilizing two-factor authentication (2FA) on all cryptocurrency accounts and keeping devices updated with strong passwords are also crucial preventative measures.
The Patrol emphasizes the importance of educating older adults about these scams, as they are frequently targeted. Awareness and open communication are key to preventing online fraud. Individuals who believe they have been targeted or victimized are encouraged to contact the Missouri Attorney General’s Consumer Protection Hotline at 800-392-8222 or file a complaint online at the Attorney General’s website. Those suspecting fraud in other states should contact that state’s Attorney General’s Office.
The increasing sophistication of these scams highlights the need for continued vigilance and education. The inherent difficulty in tracing cryptocurrency transactions makes prevention and rapid reporting the most effective defenses against these fraudulent schemes.
