Recently, the state’s financial regulator, the Department of Financial Regulation (DFR), warned Vermont citizens about the growing number of cryptocurrency investment scams on widely used social media platforms.
The Vermont Department of Financial Regulation (DFR) attributes the surge in cryptocurrency scams to cunning con artists who use increasingly sophisticated and customized strategies, using layers of deception to lure in victims.
Therefore, Vermont residents are urged to report any incidents of fraud immediately to help minimize financial losses and facilitate the identification and pursuit of perpetrators.
Instagram: Top platform identified by US agency for cryptocurrency scams
Naum Lantsman, 74, fell victim to a cryptocurrency scam conducted through two well-known social media platforms last month, resulting in the loss of his life savings amounting to $340,000.
Lantsman’s life took an unexpected turn due to the pandemic, and he found himself interested in cryptocurrency investing. While casually browsing social media, Naum Lantsman stumbled upon a post from a company called SpireBit.
His initial encounters with cryptocurrency scammers took place on Instagram, which the Federal Trade Commission (FTC) has identified as a major platform associated with cryptocurrency fraud.
Out of curiosity, he decided to get involved and established contact with the cryptocurrency scammers. The post described SpireBit as an "international financial broker" engaged in cryptocurrency transactions, luring Naum into the scam.
After the initial contact, a company representative calling himself Pavel contacted the messaging app Telegram. He wrote in Lantsman’s native Russian.
Pavel and Lantsman began talking regularly, discussing family matters and their shared background in the former Soviet Union. All of these interactions took place over Telegram.
Over several days, SpireBit executives pressured him, ultimately convincing Lantsman to invest against his will. Starting with $500, Lantsman eventually invested his life savings, totaling more than $340,000, into the SpireBit account.
Lantsman's account showed that the money was being deposited and growing. However, the chart showing the profit growth was completely fake.
When he tried to withdraw funds from his account, SpireBit produced a forged document purportedly from the U.K.’s Barclays Bank requesting a 2% fee as a “security measure.” A Barclays representative later confirmed the document was a forgery.
Although Lantsman was aware of cryptocurrency scams from previous accounts, he said he never expected to fall prey to such criminal activity.
The Vermont Department of Financial Regulation (DFR) emphasizes that scammers use ever-changing tactics to carry out their fraudulent schemes, such as forging bank documents and engaging in friendly conversations.
To combat these tactics, vigilance and thorough background checks are critical. Investors are advised to conduct extensive research before investing in a digital asset platform.