TL;DR
- A Colorado resident lost over $6,000 in Bitcoin to scammers posing as law enforcement.
- The scammers used identity spoofing and threatened arrest if the “fine” wasn’t paid in Bitcoin.
- Colorado authorities warn of increasing crypto fraud in the state, with losses exceeding $81 million in 2023.
Last week, a resident of Keystone, Colorado, fell victim to a sophisticated crypto scam, losing more than $6,000 in Bitcoin.
According to Times of Blockchain, the fraud began when scammers posed as police officers and claimed the resident had an arrest warrant for missing jury duty.
The criminals convinced the victim to transfer Bitcoin as a way to avoid the supposed arrest, successfully extracting thousands of dollars.
This case highlights the rise in crypto-related scams in the state, where the anonymity and irreversibility of Bitcoin transactions have made it easier for criminals to deceive their targets.
In another instance, scammers nearly convinced another Colorado resident to transfer an additional $4,000 in Bitcoin before local police intervened.
Authorities have warned that these criminals often use tactics like caller ID spoofing, which makes the calls appear official by displaying government agency IDs on the recipient’s screen.
Official data shows that Colorado now ranks 15th in the United States for crypto fraud, with more than 1,300 incidents reported in 2023 and economic losses exceeding $81 million.
In response to this growing threat, the Sheriff’s Office has reminded the public that no legitimate authority would request payment in Bitcoin, gift cards, or wire transfers to resolve legal issues or avoid arrest.
Crypto Scams in Bitcoin and Alerts in Colorado
This type of fraud has spread across various sectors, affecting even religious communities.
Earlier this year, the FBI in Denver issued a public warning after a fraud scheme involving a couple of pastors was uncovered.
The accused allegedly promoted a fake cryptocurrency called INDXcoin among their community, collecting $3.2 million in Bitcoin.
As the use of cryptocurrencies grows, scammers are also refining their methods, using persuasive calls and false threats to coerce unsuspecting users.
In addition to these scams, crypto platforms have also witnessed a surge in phishing attacks, where criminals impersonate legitimate organizations through fake messages.
In September, the Scam Sniffer platform reported that approximately 10,805 people lost over $46 million in cryptocurrencies due to these deceptive tactics.
For the third quarter of 2024, losses from phishing attacks and other types of crypto fraud were estimated to exceed $127 million.
Authorities advise extreme caution when conducting crypto transactions and to always verify the identity of any person or entity requesting funds.
