Recently, I posted an article about crypto scams, and someone asked me what can be done to stop them. To effectively combat these scams, we need to adopt a holistic view of the scam lifecycle, understand how it works, and implement controls throughout the entire journey.
1. Drive Awareness and Education
Awareness and education are crucial. Governments, financial institutions, dating apps, elderly protection services, and any organization that maintains ongoing relationships with consumers must take responsibility for informing the public about these scams.
2. Preventing Scams from Reaching Victims
Social media companies, telecommunications providers, internet service providers, and tech vendors need to develop safe content solutions and improve their ability to identify scams before they reach potential victims.
3. Safeguarding Transactions
Financial institutions must recognize that scams will soon surpass account takeover fraud as a significant threat. They need to implement controls like confirmation of payee, transaction monitoring, and behavioral biometrics to identify scams and provide warnings to customers.
4. Encouraging Reporting
It’s vital that individuals feel safe reporting scams. We need to change the conversation around reporting. The more we understand the scale of the problem and the anatomy of these scams, the better equipped we will be to create effective processes and tools to address them.
5. Facilitating Recovery
The FBI and law enforcement have begun developing processes and tools to assist in recovering money lost to crypto scams by analyzing blockchain transactions. They have created a blueprint that they are now working to implement on both national and global scales.
6. Addressing Human Trafficking
A significant percentage of crypto scammers are victims of human trafficking. They are often lured into fake job offers or promised a romantic meeting, only to be forced into labor conducting crypto scams. We must raise awareness about this issue and pressure governments to take action to prevent it, using similar tactics as mentioned above.
Pig Butchering Scams: Recognizing the Threat
Pig butchering scams, a devastating type of romance scam, are also relatively easy to detect and avoid. Here are some ways to protect yourself:
- Be Wary of Unexpected Messages: If you receive a text message or social media message from an unknown number or account, especially one that involves an investment, be skeptical and avoid engaging.
- Don't Share Personal Information: Never share sensitive information like passwords, credit card numbers, or banking PINs with anyone.
- Be Cautious of Investment Opportunities: Be skeptical of investments that promise high returns with little or no risk. If an investment sounds too good to be true, it probably is.
- Avoid High-Pressure Tactics: Legitimate investment opportunities rarely require rushed decisions.
- Research Investment Opportunities: Verify the legitimacy of investment websites or apps and seek advice from financial advisors.
- Be Aware of Manipulation Techniques: Scammers may use love bombing, guilt tripping, or create a false sense of urgency.
- Communicate with Loved Ones: Keep your family and friends informed about your investment decisions.
- Report Suspicious Activity: If you encounter a potential pig butchering scam, report the incident to law enforcement.
A Layered Approach
Combating crypto scams will require a layered approach, and everyone has a role to play. By working together, we can create a safer environment for all.
For more insights, listen to Scam Rangers, a podcast dedicated to exploring the human side of fraud. In addition, here are recommendations from the office of the inspector general in the US.
