By Hassan Mehmood (Saudi Arabia)
Vermont state regulators have issued a warning for the citizens concerning increasing levels of cryptocurrency scams. The state regulators have warned the masses that there are cryptocurrency frauds taking place on social media.
The alert on this matter was raised after a 74-year-old man ended up losing his life savings in such a scam. The victim in question has reported that the scam took place on Instagram.
As a result of the scam, the elderly person in question ended up losing around $340K via Telegram. The Vermont Department of Financial Regulations (DFR) has taken notice of the incident. To prevent any repetition of such serious criminal offenses the state regulators have issued a public service warning.
Local media outlets from Vermont revealed that the affected person in question named Lantsman was lured by scammers on various social media accounts regarding the occurrence of the scam.
Regulators Warn Citizens to Proceed with Caution Before Investing in Crypto
The local regulators have advised the citizens in their alert that everyone should take extreme caution when dealing with or investing in cryptocurrencies. Meanwhile, Federal Trade Commission (FTC) has also rated Instagram as the top crypto scamming social media platform.
Lantsman has told reporters that their first contact with the scammer happened on Instagram. He found a post from an account named SpireBit that advertised itself as an international financial broker.
Also read:However, Lantsman told the reporters that he proceeded to invest in the platform without conducting any research or running a background check. He told the reporters that a representative of SpireBit contacted him through Telegram and convinced him to invest heavily.
He told the media that he started out making a small investment of $500 that kept increasing leading to an accumulated loss of $340K. The fake user interface of the platform keeps showing profits to investors to lure them into increasing their trading positions.
Crypto Scammers Use Fake Bank Statements and Psychological Tricks to Lure Investors
Lantsman showed fake bank statements to the media which influenced him into investing more in the scam. He also talked about the friendly conversion of the scammers that coerced him into continuing to invest in the fraudulent scheme without raising suspicion.
DFR mentioned in its notification that con artists are getting more adept at using personalized tactics to lure more victims. However, the federal agency maintained that background checks and education about crypto products can reduce such incidents.
Eun Young Choi is the director of the Justice Department and is heading the National Crypto Enforcement Team. He told the media that in the pretext of rising threats from North Korean hackers, decentralized platform attacks became a big issue. Choi maintained that his agency is going after crypto organizations that are not taking active action to stop such criminal activities.
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