PHOENIX — Attorney General Kris Mayes is warning Arizonans to be on high alert for cryptocurrency scams targeting vulnerable individuals, particularly senior citizens.
"Scammers are taking advantage of the lack of familiarity on how cryptocurrency works to scam Arizonans out of their hard-earned money,” said Attorney General Mayes. “My office is committed to ensuring that all Arizonans are informed and protected against these emerging threats. I urge Arizonans to be vigilant and to report any suspicious activity to our office immediately."
Scammers are always finding new ways to steal money using cryptocurrency. Some common scams include:
Investment scams:
Scammers may contact individuals out of the blue on social media pretending to be investment managers or posing as love interests on dating apps who want to help invest money. These scammers promise a high rate of return with “zero-risk” as long as victims buy cryptocurrency such as Bitcoin and transfer it to the scammer’s account.
Business, government, or job impersonator scams:
In these scams, fraudsters pretend to be someone trusted by the victim, convincing them to send money by buying and sending cryptocurrency. They may claim there is fraud on accounts, legal problems, owed money, or frozen benefits and instruct victims to solve these issues by purchasing cryptocurrency. These are red flags indicating a scam.
Blackmail scams:
Scammers might send emails or U.S. mail claiming they have compromising photos, videos, or personal information about the victim and threaten public exposure unless paid in cryptocurrency. This constitutes blackmail and criminal extortion attempts that should be reported immediately.
Tips for avoiding falling victim include:
Verify Information: Before taking any actions, hang up and independently verify the legitimacy of the caller by directly contacting the organization they claim to represent using verified contact details.
Be Skeptical: Always be skeptical of unsolicited calls asking for immediate financial transactions. Government agencies will never ask for money removal via bitcoin, wire transfer, or gift cards.
Only Scammers Demand Payment in Cryptocurrency: No legitimate business demands advance payment in cryptocurrency.
Secure Personal Information: Never share personal information like social security numbers or bank details over the phone with unknown callers or give real-time computer access.
Consult Trusted Individuals: Always consult with trusted family members or friends before making substantial financial decisions involving digital currencies like bitcoin.
Report Suspicious Activity: Report suspicious calls to local law enforcement and file complaints with the Arizona Attorney General’s Office.
If you believe you have been a victim of fraud, file a consumer complaint at www.azag.gov/consumer or contact the Attorney General’s Office in Phoenix at (602) 542-5763; Tucson at (520) 628-6648; outside Phoenix and Tucson metro areas at (800) 352-8431.
For identity theft assistance, visit www.identitytheft.gov or call (877)-438-4338.
Educate yourself about cryptocurrency scams by visiting the FTC’s website.