Crypto scammers are upping their game, impersonating regulators to lure in unsuspecting victims. It’s a twist that adds a new level of deception to their nefarious activities.
The Santa Clara prosecutor, Erin West, renowned for recovering more than $2.5 million in stolen cryptocurrencies, found herself the target of impersonation. Scammers used her name and picture to trap new victims. It’s a chilling reminder of the lengths these fraudsters will go to.
This impersonation trend isn’t limited to individuals. The U.S. Securities and Exchange Commission (SEC) and other regulatory bodies have also been impersonated. It’s a tactic that exploits people’s trust in authority figures and institutions.
These scams have emerged as governments have increased their scrutiny of the crypto world. It’s a cat-and-mouse game where the crackdown on crypto has opened new doors for scammers. They’re seizing every opportunity to trick or deceive someone.
Investment scams used to be the go-to for cybercriminals, but they’ve become less profitable amid the crypto winter. As a result, scammers have turned to impersonation and “pig butchering” – long romance cons where victims are “fattened up” before being scammed.
The impact of these scams is significant. In Britain alone, more than 45,000 impersonation scams in 2022 cost victims about $227.6 million. However, the true figure is likely much higher as many frauds go unreported due to the stigma of being conned.
Regulators and law enforcement agencies are fighting back, but it’s an uphill battle. These criminal networks’ international and mutating nature makes it challenging to catch the perpetrators. Even when one scam is shut down, the criminals simply move on to another.
As the crypto world continues to evolve, so do the tactics of scammers. It’s a stark reminder of the need for vigilance and informed decision-making in crypto.
