Kinston Police warn residents about cryptocurrency scams targeting victims
SCAM ALERT: CRYPTOCURRENCY FRAUD IN KINSTON
A variety of cryptocurrency scams, many involving Bitcoin ATMs, have recently been reported in the Kinston area. Police urge citizens to be on their guard as scammers have succeeded in stealing thousands from citizens.
Cryptocurrency, such as Bitcoin, is a digital form of currency not backed by any government or bank. These digital dollars are legal, are accepted at some businesses and can be purchased at terminals, often called "Bitcoin ATMs," located in many towns across the country.
The funds are sent electronically; accounts accepting Bitcoins, and especially the Bitcoins themselves, are highly digitally protected. This makes it more difficult for law enforcement to track fraudulent transactions made with them. Making matters worse, these transactions cannot be reversed, and money can be sent to countries where local police have no reach, or which don't cooperate with federal law enforcement, according to the Internet Crime Complaint Center (IC3), a cyber-crime reporting hub run by the FBI (www.ic3.gov).
In one recent scam reported to Kinston Police, a victim was instructed to send money via Bitcoin ATMs to an unknown recipient, after the suspect called the victim and threatened to arrest them on a warrant. In similar reports, scammers have called victims claiming to be law enforcement or jail staff, stating that a loved one was being held under secured bond, and pressuring the victim to pay thousands in Bitcoin fees to have them released. In some cases, criminals have even used computers to mimic local law enforcement phone numbers.
In another recent incident, a victim stated they clicked on what appears to have been a fake antivirus pop-up on their computer. The victim was then told by scammers that their bank account had been compromised, and a transfer of all their money via Bitcoin was needed to secure it. In schemes such as this, scammers pressure victims, stating that, by sending Bitcoin to an unknown account, they will be able to somehow recover money from their bank. Criminals tell would-be victims that they must act quickly, not ask questions, and in some cases, have even pressured victims into lying to bank tellers who question their large cash withdrawals. The money is not recovered.
The cases have similarities: An unsolicited caller asks for (or demands) money via Bitcoin or another cryptocurrency for some emergency cost. The caller tells the victim to act quickly, and remains pleasant and polite while the victim cooperates. Once the victim sends some money from a Bitcoin ATM, the caller demands more, until the victim is either unwilling to cooperate any longer, or until their savings, in some cases hundreds of thousands of dollars, have been drained. Victims in these cases often experience fear over trusting others, depression over the loss of their savings and embarrassment at having been tricked by a scammer.
Worse yet, it is unknown what scammers have done with funds in these cases. Federal investigators, working to dismantle terrorist networks, reported in 2020 that they seized millions in cryptocurrency from three networks funding terrorist organizations, including al-Qaeda, the Islamic State of Iraq and the Levant (ISIS) and the al-Qassam Brigades (https://www.justice.gov/.../global-disruption-three...). Case by case, it is unknown whether citizens' savings are being used for personal enjoyment, or for more nefarious purposes such as terrorism.
Citizens are reminded that the Kinston Police Department does not collect money except in the form of legitimate fees for services such as employment fingerprinting, or as evidence in criminal cases. Law enforcement will never contact any citizen and demand money, and under no circumstances will KPD require, or even accept, any payment in Bitcoin; the same goes for gift cards and other forms of electronic currency. Similarly, court costs, fines and bonds cannot be paid in Bitcoin or any other electronic currency.
Any stranger who demands money over the phone should automatically be treated as suspicious. Any stranger who requests dangerous and difficult-to-track Bitcoin transactions, or mentions them in any way, should be hung up on and the number blocked.
Any unsolicited caller who claims to be a bank representative should be treated with extreme caution, even if the caller identifies himself as representing the victim's bank. Any person claiming to be a bank representative demanding money over the phone should be hung up on and the number blocked. Any email or text which requests these things should be marked as "spam" and ignored. Any person who has received a similar call or message, and is unsure what to do, should contact their bank before sending any funds.
While Bitcoins and other cryptocurrencies are not illegal, they do provide an effective way for criminals to defraud Americans from beyond the reach of local police. Any person who has been a victim of a cryptocurrency scam is urged to make a report to the FBI directly at https://www.ic3.gov/PSA/2023/PSA230824. This page offers guidance on how to submit the report.
A list of common digital cryptocurrencies, according to IC3: Bitcoin (BTC), Binance Coin (BNB), Ethereum (ETH), USD Coin (USDC), Tether (USDT), Cardano (ADA), Dogecoin (DOGE - NOT affiliated with the U.S. Government), Solana (SOL), Ripple (XRP), Tron (TRX).
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