October is Cyber Security Awareness Month, and we can’t
overemphasize the importance of consistently taking action to reduce risks when
online or using your phone.
Released in April, the FBI’s 2024 Internet Crime Report, compiled by the Internet
Crime Complaint Center, logged 859,532 complaints of suspected Internet crime,
with reported losses exceeding $16 billion—a 33% increase from 2023.
In reality, many don’t report, and losses are likely much
higher.
The top three cybercrimes by number of complaints reported
by victims in 2024 were phishing/spoofing, extortion, and personal data
breaches.
Individuals over 60 suffered the highest financial losses,
totaling nearly $5 billion—almost double the $2.5 billion reported by those
aged 50-59. They also filed the most complaints overall, highlighting their
disproportionate vulnerability.
Victims of investment fraud, specifically those involving
cryptocurrency, reported the most losses, totaling over $6.5 billion.
Digital assets
Confused about cryptocurrencies like Bitcoin or Ethereum?
You’re not alone.
People use cryptocurrency for many reasons, such as quick
payments, avoidance of bank transaction fees, or simply because it offers some
anonymity. Many hold cryptocurrency as an investment, hoping the value rises.
Yet, paying with cryptocurrency does not come with legal
protections that users of credit cards enjoy.
Payments aren’t reversible unless the recipient refunds a
payment to the sender, and some information about your transaction will be
public because it is recorded on a public ledger called a blockchain.
Steer clear of the crypto con
Growing interest in crypto has led to an explosion of scams
and fraudulent activity.
Activities the Federal Trade Commission warns against
include:
Only scammers demand payment in cryptocurrency. No
legitimate business is going to demand you send cryptocurrency in advance to
buy something or protect your money.
Avoid those who promise big profits. Those promising big
returns with no risk are criminals.
A so-called “investment manager” contacts you
out of the blue. They guarantee a big profit if you buy cryptocurrency and
transfer it into their online account. The promoted investment website looks
real, but it’s fraudulent, and so are their promises. You’ll struggle to
withdraw your money or be forced to pay high fees.
You answer an ad for a job that only pays in Bitcoin.
It’s all online, you work from home, and it sounds like easy cash. After
receiving token payments, promised payouts never seem to be deposited into your
account. But scammers keep asking you to deposit crypto to maintain your job,
claiming big payouts are forthcoming.
Brenda Smith knows the experience all too well. Her story,
recently featured in Business Insider, follows a strikingly similar
pattern.
At 56, Ms. Smith, who holds a master’s degree and works in
higher education, discovered what turned out to be a job scam she discovered on
LinkedIn.
The scheme required upfront cryptocurrency payments—a huge
red flag—that she only recognized after she lost about $15,000.
Have you ever received an unsolicited text message from
an unfamiliar phone number? The scammer will ask a simple question, hoping
you’ll respond, even if it’s to inform them that they misdialed.
They will apologize, then try to engage you in a
conversation. As they gain your trust, they will share how you can accumulate
riches, often through cryptocurrencies. Send them money and you’ll never see it
again. Instead, ignore the text and block the number.
Love and money. Online dating sites are everywhere.
Many are legit, but fraudsters lurk in shadows, preying on the unsuspecting. If
you meet someone on a dating site or app, and they want to show you how to
invest in crypto, ask you to send them crypto, or ask for cash, that’s a scam.
One unfortunate victim told her story to the FBI’s Salt Lake City office.
Rita, who lives in Montana, says she lost $90,000 over the course of several
months to someone posing as a celebrity.
The “celebrity” initially reached out to her on a social
media platform and eventually asked her to move their communication to an
encrypted app. That’s a red flag.
The “celebrity” eventually started asking her for money for
events like a meet and greet. “It was always through Bitcoin,” she said.
But with romance scams, it’s not just about the lost money.
“The biggest part,” Rita said, “is to lose your heart and your soul” to someone
you trusted.
Bottom line: Never send money or gifts to a
“sweetheart” you haven’t met in person. Many will claim that it’s an emergency
or some other important reason. They will continue to request funds until you
break off communication or bleed you dry.
Here are some additional tips that the FBI offers to help
avoid becoming a victim:
Be careful what you post because scammers can
use that information against you.
Only use dating websites with national reputations,
but assume that con artists are trolling even the most reputable sites.
Go slow and ask questions, and research
the individual’s pictures and profile using other online search tools
to ensure someone else’s profile was not used or to see if that same pitch is
being used on multiple victims at once.
Watch for these warning signs:
The individual sends you a photo that looks like
it’s out of a magazine, professes love quickly, or tries
to isolate you from family and friends.
The individual claims to be working and living
across the country or overseas and makes plans to visit but always
cancels because of some emergency.
They are in no hurry. Why? They are getting to know
you. You are in their pipeline. They have been “working” other individuals for
quite some time.
Why romance scams, you may ask?
Some of our clients have been happily married for decades.
Searching for a partner online is a foreign concept. But for those who are
young, it’s as common as stopping at Starbucks or McDonald’s.
If you are older, recently divorced, or have lost a spouse,
the online route is becoming acceptable. Some sites even cater to seniors.
Yet, let’s state the obvious. When your head is clear, you
make better decisions. When your heart is involved, emotions may cloud
your thinking.
If you are corresponding with someone online whom you have
never met, and they ask you for money for some contrived situation, listen to
the voice in your head: “Something’s not right. Are they trying to scam me?”
The short answer is yes.
You may find the person you’ve been looking for. But be
smart. Be careful. Arm yourself with knowledge. When your emotions are
involved, it’s easy to let your guard down.
If you have questions, we’re here to provide additional
information. We deeply value our relationship with you, and we want to arm you
with the tools that can protect you from scams and fraudulent activity.
