Colorado authorities have warned about a problem the state is facing in relation to crypto scams. Fraudsters found a way to leverage phone spoofing and social engineering, using it to impersonate law officials. 

There are many reasons why fraudsters would focus their efforts on cryptocurrency. For starters, this digital currency has become indispensable in many industries, with online gambling leading the way. The use of crypto erases worldwide borders in a way that removes the issue of currency conversion and loss of money. Crypto transactions are also protected by advanced encryption, making them as secure as possible. 

Apart from that, crypto payments are usually low-cost and quick, both of which are crucial for a positive gambling experience. Thus, there are many Bitcoin casinos with fast payouts on the market, and they do a good job of attracting new players. Players enjoy the security and anonymity of trusted crypto gambling sites, but should always be aware of any crypto-based sites that aren’t what they first appear to be.

It is this anonymity and speed that makes cryptocurrency more appealing to fraudsters – one of whom just recently robbed a Colorado resident. 

A Keystone resident found himself at the center of an elaborate scam, which resulted in a loss of more than $6,000 in Bitcoin. As found out by the Summit County Sheriff’s office, the scammers pretended to be law enforcement members, threatening the Colorado native with arrest after allegedly missing jury duty. 

An additional transfer of $4,000 that was already being processed was luckily prevented due to the quick work of Keystone’s deputies. While they were able to prevent another transfer from going through, they unfortunately didn’t manage to protect the victim’s sensitive data which was given out during the call.

In 2023, financial losses involving cryptocurrency broke the record at $5.6 billion, and call logs from the incident serve as a testament to that fact. They show that similar incidents have been happening all over the state, with a woman in Denver losing almost $5,000 in Bitcoin. The fraudsters’ MO was the same – they pretended to be Denver law enforcement officials informing her that she missed jury duty. 

Missing jury duty the first time can result in a few days of incarceration. However, the public should be aware that the deputy would never call to inform them about a warrant for their arrest and offer to clear it in exchange for gifts or, in this case, cryptocurrency. 

The Denver victim followed the instructions and sent a payment, after which she called the Denver police and found out she was scammed. Her bank will try to recover the money after being notified of the fraud, but they don’t have a lot of hope for that happening. 

These two incidents of crypto fraud weren’t the only ones in Colorado. There was another case in September where a Keystone resident was on the verge of making an $8,000 transaction after getting the same call. Luckily, the Keystone bank in charge of the transaction prevented him from completing it, saving his money in the long run. 

The public should keep one thing in mind – crypto transactions are known for their high level of safety and privacy. In the cases mentioned above, Colorado’s residents fell victim to refined scamming techniques, making the transactions themselves. With the state ranking 15th in the USA for crypto-related crimes, the public has to take matters into their own hands. 

All crypto holders should educate themselves about the biggest risks and scams that lurk, always double-checking every transaction they make. Scammers can be aggressive and persuasive, and the transactions are generally irreversible. The public should also turn to private-led initiatives if it comes to that, as these have been launched in an attempt to combat these incidents.