Cryptocurrency Scams Rise During Pandemic: Gloucester Twp. Police

GLOUCESTER TOWNSHIP, NJ — Gloucester Township police are warning residents about a rise in scams involving cryptocurrency amid the outbreak of new coronavirus.

Fraudsters are taking advantage of the increased fear and uncertainty among residents during the coronavirus pandemic to steal their money and launder it through the complex cryptocurrency ecosystem, police said in a statement on Wednesday.

Unlike other schemes that prey on the elderly, residents of all ages are being targeted, police said. This is because cryptocurrency is becoming more popular due to technological developments and an increase in the number of businesses that accept it as currency.

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There are not only numerous virtual asset service providers online but also thousands of cryptocurrency kiosks located throughout the world criminals are exploiting for their schemes, police said. Many traditional financial crimes and money laundering schemes are now orchestrated via cryptocurrencies.

Schemes include:

Blackmail Attempts: Threatening emails or letters in which scammers claim to have access to your personal information or knowledge of your “dirty secrets” and demand payment in Bitcoin to prevent release of this information have been circulating for years.

Work from Home Scams: Scammers, posing as employers, may ask you to accept a “donation” of funds into your own bank account and to deposit them into a crypto kiosk.

Paying for Non-Existent Treatments or Equipment: Scammers have been known to lure customers from trusted e-commerce sites offering products that claim to prevent COVID-19 onto unrelated and unregulated messaging sites to accept payment in cryptocurrencies for products that do not actually exist.

Investment Scams: Criminals often pitch fraudulent investments in a “new” and developing cryptocurrency, such as an initial coin offering (ICO) or other investment vehicle to take a victim’s money. These scams typically involve scenarios that seem “too good to be true”—offering large monetary returns for a short-term, small investment.

Although there are legitimate charities, investment platforms, and e-commerce sites that accept payment in cryptocurrency, pressure to use a virtual currency should be considered a significant red flag, police said.

For more information, visit https://www.fbi.gov/news/pressrel/press-releases/fbi-expects-a-rise-in-scams-involving-cryptocurrency-related-to-the-covid-19-pandemic.

Read more: NJ Coronavirus Updates: Here's What You Need To Know