Crypto scammers are ravaging the crypto space and have moved to social media platforms. On these platforms, they prey on unsuspecting users and defraud them of their crypto holdings.
Sean Ragan, a special agent of the U.S. FBI, told CNBC that:
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“Cryptocurrency scammers on LinkedIn are a huge threat to users.”
Meanwhile, LinkedIn acknowledged that there had been a rapid increase in scams on its platform. This time, it involves tricking users into investing in crypto.
Also, Ragan noted that several individuals had been victims of this deceptive practice. Hence, the FBI agent has advised users to be careful of messages from unknown individuals.
Ragan Outlines The Strategy Of The Scammers
CNBC reports that most victims believed the investments were genuine. This was because they felt LinkedIn was a reputable platform for business-minded individuals.
Moreover, the social platform LinkedIn has more than 830 million users in over 200 countries. Meanwhile, Ragan outlined the strategy they use.
First, the scammer creates a false account and reaches out to users on LinkedIn. Usually, they begin with a polite discussion before offering the user a crypto investment business.
Afterward, the fraudster invites the user to a popular crypto investment platform. After gaining their trust, they tell the victim to send funds to a different platform. Usually, they have control of these sites and wipe out the funds.
Furthermore, Ragan told CNBC that these fraudsters are constantly devising new methods. As a result, they spend time analyzing and outlining plans, objectives, and approaches.
Unfortunately, as the cryptocurrency community grows, con artists will keep targeting the sector. LinkedIn Senior director of privacy, trust, and equity, Oscar Rodriguez stated that;
“It is quite challenging to identify what is fake on the platform. Curtailing the issue of crypto fraud on the platform has been difficult.”
Crypto Fraud Has Increased By Over 12%
As reported by the Consumer Sentinel of the Federal Trade Commission, about 7k persons have reported crypto scams from October 2020 to March 2021. The amount lost during the period amounts to over $80 million.
Meanwhile, the FTC released a report on the amount lost to crypto scams since 2021. The report shows over 46k users have lost about $1 billion.
Judging from the statistics, the number of reported cases has increased by 12 times. Also, it indicates a 1000% increase in the number of funds lost.
LinkedIn is not the only platform that crypto scammers have infiltrated. Recently, countries had to ban crypto investment ads on social media platforms like Facebook. This was after users reported losing funds to ads about crypto-investment.