Forensic accountants at the Norfolk field office of the FBI are actively addressing a concerning trend in cryptocurrency that is significantly impacting individuals’ financial situations in the Hampton Roads region of Virginia.
CHESAPEAKE, Va. — Daniel Booth describes these schemes as traditional scams with a modern twist, noting a noticeable increase in cryptocurrency-related fraudulent activities affecting various FBI field offices.
Booth, a forensic accountant at the Norfolk Field Office of the Federal Bureau of Investigation, points out three common cryptocurrency scams:
1. Ransomware
These scams involve cybercriminals breaching businesses’ security systems, taking control of their networks, and demanding ransom payments in cryptocurrency instead of traditional currency. For larger entities like hospitals or law firms, the ransom demands could escalate to millions, presenting victims with a dilemma of whether to restore their systems independently or pay the ransom in cryptocurrency.
2. “Tech Support”
Primarily targeting individuals, this scam tricks unsuspecting users with fake antivirus warnings on websites, prompting them to call a specified number. Once connected, scammers convince users to install software for remote access, allowing them to extract valuable data, financial information, or personal documents and overcharge for their fraudulent services.
3. “Pig Butchering”
A prevalent form of crypto fraud in the Hampton Roads area, this scam involves luring victims to invest funds through a fake trading website that mimics legitimate platforms. Victims are enticed with apparent returns on trades and guidance from a ‘mentor,’ risking their life savings as scammers continually solicit money under the guise of profitable crypto investments.
Booth’s alerts align with a recent FBI public service announcement warning the public about cryptocurrency-related scams. Individuals who believe they have fallen victim to such scams are urged to report their cases to the Internet Crime Complaint Center.
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