Colorado Individual Defrauded of $6,000 in Bitcoin by Impersonation of Law Enforcement Officials

A resident of Keystone, Colorado, fell victim to a sophisticated scam last week, losing more than $6,000 in Bitcoin after fraudsters impersonated law enforcement officials.

The scammers threatened the victim with arrest for failing to appear for jury duty, persuading them to send Bitcoin to avoid a warrant.

“A deputy will never contact someone to inform them of an arrest warrant or ask for payment in Bitcoin, gift cards, or wire transfers to resolve it,” the sheriff’s office noted in an incident report.

Another $4,000 Bitcoin Transaction Disrupted in Colorado

Before deputies intervened, an additional transaction worth $4,000 was in progress, but the criminals had already obtained personal information during their initial communication.

According to call logs, similar scams are emerging throughout the state.

In one instance, a woman from Denver reportedly lost nearly $5,000 in Bitcoin after scammers, posing as Denver Police officers, convinced her that she had missed jury duty.

Following the scammers’ directions, she transferred funds via a Bitcoin ATM. Upon later contacting Denver Police for verification, she realized she had been scammed.

Beware of crypto scams! A #Colorado resident lost $6,000 in Bitcoin to scammers posing as law enforcement.
Stay vigilant and protect your assets from fraud.#CryptoScam #Bitcoin #StaySafe pic.twitter.com/9H4JuZl4DD

— Times of Blockchain (@ToBcryptonews) November 4, 2024

Authorities indicated that it is improbable her funds will be recovered, although her bank has been alerted.

This incident resembles another recent case in Keystone where bank personnel prevented a resident from transferring $8,000 in cryptocurrency after they received similar calls.

Scammers are increasingly utilizing caller ID spoofing to make their calls appear as though they are coming from legitimate law enforcement agencies.

Crypto fraud has escalated across Colorado.

State investigators recorded over 1,300 crypto-related scams in 2023, leading to losses exceeding $81 million.

According to state data, Colorado now ranks 15th in the nation for crypto crimes.

In light of the increasing number of crypto scams, the FBI Denver issued a public alert earlier this year, emphasizing cases where fraudsters targeted religious communities.

In one case, a pastor and his spouse allegedly misappropriated approximately $3.2 million in cryptocurrency, promoting a token called INDXcoin to their Christian community.

“These scammers can be aggressive and persuasive,” the Sheriff’s Office warned, noting that the irreversible nature of cryptocurrency transactions makes it especially appealing to fraudsters. Once funds are transferred, they are challenging to trace or recover.

DHS Investigators Thwart Hundreds of Ransomware Attacks

As reported, the Department of Homeland Security (DHS) has disrupted hundreds of crypto scam incidents, recovering billions in extorted cryptocurrency since 2021.

DHS investigators have intercepted 537 ransomware attacks before they could inflict widespread harm.

This initiative, led by the Homeland Security Investigations (HSI) Cyber Crimes Center, has been particularly crucial for safeguarding U.S. government agencies, which have been the primary targets of these cyber threats.

Meanwhile, phishing attacks continue to pose a significant problem for crypto users, resulting in considerable losses.

In September alone, over 10,000 individuals lost more than $46 million to such scams, according to Scam Sniffer, a Web3 anti-scam platform.

The platform reported that 10,805 victims experienced losses totaling $46.7 million from various crypto phishing scams.

In the third quarter of 2024, over $127 million in crypto assets were stolen, with Ether wallets being the main targets in these phishing attacks.

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