US Federal Trade Commission warns of new crypto scam

Tuesday 11 January 2022 14:01 CET | News

The US Federal Trade Commission (FTC) has issued an alert about a new type of crypto scam, involving fraudsters asking people to pay with cryptocurrency.

The scam uses an impersonator, a QR code, and a trip to a store (directed by a scammer on the phone) to send your money to them through a cryptocurrency ATM. The scammer calls pretending to be from the government, law enforcement, or a local utility company. They will then ask you for money. If you believe the story they tell and you seem willing to engage, they will stay on the phone to direct you to withdraw money from your bank, investment, or retirement accounts.

Then they’ll tell you to go to a store with a cryptocurrency ATM. Once you are there, they will direct you to insert your money into the ATM and buy cryptocurrency. This is where the QR code comes in: they send you a QR code with their address embedded in it.

Once you buy the cryptocurrency, they have you scan the code so the money gets transferred to them. Of course, nobody from the government, law enforcement, utility company, or prize promoter will ever tell you to pay them (even with cryptocurrency). If someone does, it’s a scam, every time.

Any unexpected tweet, text, email, call, or social media message — particularly from someone you don’t know — asking you to pay them in advance for something, including with cryptocurrency, is a scam.

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cybersecurity, scam, cryptocurrency, fraud management
Categories: Fraud & Financial Crime
Companies: Federal Trade Commission
Countries: United States
This article is part of category

Fraud & Financial Crime

Federal Trade Commission

Discover all the Company news on Federal Trade Commission and other articles related to Federal Trade Commission in The Paypers News, Reports, and insights on the payments and fintech industry:

Industry Events