AG Nessel and Michigan State Police warn of dangers of cryptocurrency and bitcoin scams – Macomb Daily
Attorney General Dana Nessel is working with the Michigan State Police to make the public more aware of cryptocurrency and bitcoin scams. MEDIA NEWS GROUP/FLINT JOURNAL VIA AP
Michigan Attorney General Dana Nessel and the Michigan State Police (MSP) Cyber Section have teamed up to educate the public about the dangers of cryptocurrency scams.
Elderly and vulnerable adults are often targeted by fraudsters who use crypto scams, but anyone can be a victim.
“Cryptocurrency is a new, complex market that creates confusion among even seasoned investors, and bad actors are exploiting this arena to prey on people of all ages,” Nessel said in Tuesday’s press release.
Cryptocurrency is a digital currency. Bitcoin (BTC) and Ethereum (ETH) are the most common types of cryptocurrency, but there are thousands of types of cryptocurrency. Cryptocurrency can be purchased online via a cryptocurrency exchange or with cash at crypto kiosks or Bitcoin ATMs. Cryptocurrency is not illegal, but fraudsters often exploit cryptocurrency and use it as a tool to steal from others.
Nessel and the Michigan State Police say Michiganders should be alert if someone asks you to go to the bank or credit union and:
• Withdraw cash at a different branch than you would normally use,
• Tell the department tellers about the reason why you are withdrawing money, or
• Leave a mobile phone “on” or keep a phone conversation going by leaving the mobile phone in a pocket or purse so that the caller can give you further instructions after you withdraw cash from a bank or ATM.
“Residents should be wary of unsolicited requests from strangers over the phone or internet, and especially requests to make bank withdrawals or deposits at cryptocurrency kiosks or Bitcoin ATMs.”
Legitimate cryptocurrency investment opportunities will not come from people you don’t know sending offers to invest by sending money using Facebook or other social media platforms, Nessel said. Be careful with investment opportunities that require the use of a specific website, as gains in “cryptocurrency investments” can easily be faked by anyone who can design their own website.
Detective First Lt. James Ellis, chief of MSP’s Cyber Section, said scammers are using cryptocurrency scams to take advantage of residents in Michigan and elsewhere, often without interaction from the victim.
“Online exchanges are being exploited more often with the account holder’s crypto being stolen, like a bank robber stealing money from a bank safe, but much simpler,” Ellis said. “Bad actors call and email victims directly, duping them out of crypto and cash with get-rich schemes, romance scams, or by creating fake emergencies that need to be dealt with immediately, playing on the victim’s emotions.”
Ellis urges Michiganders to use common sense tactics: legitimate organizations will not ask you to withdraw money from your bank or for login details for your cryptocurrency or online accounts.
“Never allow someone you don’t know remote access to your computer or accounts when they offer help to help,” Ellis said, adding that local law enforcement like MSP or federal law enforcement including the Federal Bureau of Investigations (FBI) will never ask you may assist with a criminal investigation by sending money, cryptocurrency or personal IP address information. Money transfer platforms (like PayPal or Venmo) will never call or email you and tell you to open a cryptocurrency account.
For more information about popular consumer scams, or if you believe you have been a victim, citizens can contact the Attorney General’s Consumer Protection Team Monday-Friday at 877-765-8388 or fill out the Department of Attorney General’s online complaint form.
