Authorities To Dismantle Cryptocurrency Investment Fraud By Scammers

JAKARTA - Cryptocurrency investment scams are one of the most troubling forms of cybercrime today. Many people are interested in the promises of big profits from digital currency trading, but do not realize that they are becoming easy targets of fraudsters.

Fraud perpetrators usually take advantage of the victim's trust and ignorance to drain their money through fake platforms, wallets and accounts. One example of a cryptocurrency investment scam case recently revealed by the United States Department of Justice (DOJ).

The DOJ announced that it had succeeded in confiscating crypto assets worth more than 112 million US dollars (equivalent to Rp1.6 trillion) related to cryptocurrency investment fraud. This confiscation comes after DOJ received orders to confiscate from judges in three states, namely Arizona, California, and Idaho.

According to court documents, fraudsters have long-term relationships with victims they encounter online, usually through social media or dating sites. They then lure victims to invest in fake cryptocurrency trading platforms that are claimed to provide high profits.

After the victim sent their money, the scammers disappeared and transferred the funds to different crypto wallets and accounts to launder money from their crimes.

DOJ stated that they had identified six crypto accounts allegedly used by their fraudsters and conspirators. These accounts contain various types of digital currencies, such as Bitcoin, Ethereum, Tether, and others. DOJ managed to freeze the assets and plans to return them to the affected victims.

Cryptocurrency investment scams are serious problems that harm many people. According to data from the FBI Internet Crime Complaint Center (IC3), investment fraud caused the highest loss compared to other frauds reported by the public in 2022, with total losses reaching US$3.31 billion or around Rp49.6 trillion in accordance with current exchanges.

Crypto scams are the majority of the scams, an increase of 183 percent from 2021 to US 2.57 billion (IDR 38.3 trillion) in losses reported last year. The majority of whistleblowers came from victims aged between 30 and 49 years.

The DOJ said that international criminal organizations committed fraudulent acts or scamming under the guise of technology expertise to deceive Americans from the funds they had worked so hard to get.

Authorities state that they will continue to use all existing tools to disrupt and prevent cryptocurrency fraud schemes through blockchain analysis and targeting infrastructure used by fraudsters.

Cryptocurrency investment scams are a real threat to everyone interested in the digital currency world. Therefore, it is important to always be vigilant and careful before making any investment.

Always do research and verification of the platform, wallet, and account used. If you are suspicious or in doubt, immediately report it to the authorities or consumer protection agency. That way, we can protect ourselves and others from cryptocurrency investment fraud.