Green Bay, Wisconsin police have reported that local residents have lost over a quarter million dollars to cryptocurrency scams since 2020. As the crypto industry struggles for wider adoption and tries to shake off the stigma around crypto as a tool for money laundering and other abuses, the magnitude of the losses suffered by citizens in a mid-sized US city does not seem to be helping.
Cryptocurrency Scams
As reported by WBAY News on Wednesday, Green Bay police have released data showing a total loss of $195,200 so far in 2023. This figure is higher than any other year for which figures are available and represents only the thefts reported by citizens. The local news stated that Green Bay police have received at least 28 reports of crypto thefts since 2020. The total amount stolen is $273,893.
According to WBAY, one of the most common methods used by scammers is to tell citizens that they are subject to some kind of debt or fee related to a technical issue or the delivery of a package.
The malicious individuals then tell the victims to send cryptocurrency as payment or convert their money into crypto and make the payment. In some cases, they offer to stay on the phone and guide the unaware victims through the process of parting with their hard-earned money.
Green Bay Police Chief Jeff Brester said that legitimate companies and government agencies would never ask citizens to make payments with crypto. It was emphasized that it is almost impossible to recover the money once the malicious scammers have received the requested payment. The scammers are often located in foreign border areas and their true identities are unknown.
Warning About Payment Requests with Crypto
The figures released by the Green Bay authorities may seem like an ironic commentary on the inadequacy of current policies to prevent online and crypto scams. The type of crime identified by the Midwestern city’s police is very prevalent. In fact, the announcement by Green Bay police came just two days after the Federal Trade Commission (FTC) issued a strong warning about the same method of crime.
As the FTC reminded consumers in its advisory, “only scammers demand payment with cryptocurrency.” It is a clear sign of a criminal enterprise. People should never make a payment in cryptocurrency as part of a job application. Nor should they deposit money into a platform mentioned by a stranger on a dating site.
