FBI says cryptocurrency scams involving tether and USD coin on the rise in Denver

The Denver Division of the Federal Bureau of Investigation warns the public of cryptocurrency scams on the rise with many falling victim to huge financial losses, in a press release. 

Investigators say they are seeing an emerging trend within cryptocurrency regarding investment scams involving U.S. tether and coin. 

FBI says victims were approached on social media platforms, dating apps or discussion forums with an investment opportunity. They are then forwarded a link or phone number to set up the investment account. Authorities warn this is a scam. 

Once the account is made and the money is transferred, the fraudster disappears with the funds. Investigators say the link or phone number is controlled by the scammer, who creates a fictitious support site to receive funds. 

FBI says, since 2021, $575 million of all crypto fraud losses reported to the Federal Trade Commission were about bogus investment opportunities, far more than any other fraud type. More than 46,000 people have reported losing over $1 billion in cryptocurrency. 

"As more people use and invest in cryptocurrency, the more crypto scams we see," said special agent in charge, Mark Michalek. "The FBI will investigate allegations of crypto scams, but the best path is not to fall victim in the first place. FBI Denver wants people to be aware of the warning signs and be alert to the ways fraudsters try to reel them in."

In 2021, Coloradans reported losing almost $25 million to investment scams, while people who were 60 and older, lost more money to scams than any other age group, according to the FBI's Internet Crime Complaint Center.