In 2024, investment fraud resulted in more reported losses than any other type of scam, totaling $5.7 billion — about $1 billion more than the previous year. Experts believe the true impact is even greater, as many scams go unreported. While investment fraud is not new, many of today's scams involve cryptocurrency schemes that promise high returns but leave victims with significant financial losses.
How It Works
- The "wrong number" text: You receive a text message you believe to be sent in error – a message about dinner plans or a ride to the airport.
- Building rapport: When you politely reply to let them know they have the wrong number, a conversation begins. Over time, the scammer builds trust.
- The pitch: Once trust is established, they "let you in" on an opportunity to invest in cryptocurrency.
What You Should Know
Scams like these rely on building trust slowly. Fraud teams work around the clock to keep targets engaged. Some even pay their victims small, early "gains" to give their scam a legitimate feel. Victims may only realize the fraud the moment they try to cash-out, at which point their "friend" disappears.
What You Should Do
- Ghost unknown senders: Don't respond to messages from unknown senders on any platform.
- Identify red flags: Treat "exclusive" tips or any request for secrecy as a major warning sign.
- Report incidents: If you or someone you know falls victim to fraud, contact your financial institution immediately and file a report with law enforcement.
- Spread this news: Knowledge is power. Please share this with your friends and family.